Employer associations are voicing strong criticism of the German government’s proposed pension reforms. Rainer Dulger, President of the Association of German Employers’ Associations (BDA), told the Handelsblatt newspaper that the planned pension package is poised to become a liability for future generations. He estimates the cost will reach approximately €50 billion by 2031, labelling it “the most expensive social law of this century”. Dulger stated that the legislation should not be enacted in its current form.
In a formal statement regarding the draft bill presented by Labour Minister Bärbel Bas (SPD), the BDA has quantified the supplementary costs associated with stabilizing the pension level until 2031 and expanding the maternity pension, placing the figure at €200 billion over the next 15 years.
According to the BDA’s analysis, if implemented, government subsidies will rise more rapidly than currently projected, reaching €131 billion by 2030 – nearly 40% higher than current levels. The association emphasized that these increased funds would necessitate cuts elsewhere in the national budget, potentially impacting investments or tax relief measures.
Should the government not reconsider its plans, the BDA urges a swift return to the legally mandated pension level after 2031. This adjustment, they argue, would more than halve the overall cost of the pension package, as the current legislation maintains a higher pension level beyond 2031 compared to the situation without the reform.