Pensions threaten German government
German Chancellor Friedrich Merz said on Friday, November 28, that his coalition has agreed to carry out a comprehensive pension reform next year, a move aimed at addressing concerns over a temporary pension bill that had threatened to destabilize his government.
Merz's conservative youth forum had said it would not support the new bill, which aims to maintain current pension levels in relation to earnings while encouraging people to work longer, as this would leave young Germans bearing the costs.
Their veto of one of the conservatives' key compromises with coalition partner the Social Democrats (SPD) could block its approval in parliament, triggering a crisis of confidence in the government just six months after taking power.
Merz's coalition has a 12-vote majority in parliament, making it vulnerable to defections. The young conservatives hold 18 votes.
Merz expects the bill to be approved next week
However, the German chancellor said he was confident that parliament would approve the bill next week, given that it would be accompanied by a resolution recognizing the need for deeper reform next year, as agreed by coalition leaders during their monthly meeting that took place on Thursday.
"I await approval.,” said Merz, who spoke to young conservatives earlier on Friday, even though they had not promised to support his bill.
Merz's conservatives and the SPD promised to provide more stability when they formed "marriage of convenience" following the collapse of the previous three-party coalition led by Social Democrat Olaf Scholz.
But Merz's coalition has faced tensions since day one, when he became the first German chancellor to fail to be elected in the first round of voting.
While the coalition leaders have a good working relationship, they are struggling to keep their lawmakers in check. Many within Merz's conservative bloc are disappointed by the degree of compromise required when their campaign had promised radical change.
Some political analysts say Merz, who had never held a government post before, is guilty of behaving like a CEO, rather than working hard to win the support of different factions within his coalition.
However, pensions and intergenerational justice are becoming key political issues across Europe, as populations age and public finances tighten.
France, for example, has been forced to suspend a major pension reform until after the 2027 elections, sacrificing one of President Emmanuel Macron's key achievements to ensure the government's survival.
