German Union’s Leader Urges Overhaul of Social Insurance in New German Government
The head of the German Young Union, Johannes Winkel, has called for a fundamental reform of the social insurance system in the newly formed federal government. Winkel, a Bundestag member, believes that the current system is perpetuating an “unfair redistribution of burdens to future generations.”
Winkel emphasized the need to reintroduce the sustainability factor in the pension insurance system and to make the capital-backed old-age provision more attractive. He also suggested reviewing the family-split income tax model, pointing out that a “childless contribution” already exists in the long-term care insurance, which could be applied to the pension insurance as well.
The union leader urged a more open-minded approach in the negotiations between the Union and the Social Democratic Party, saying that “we all need to break taboos.” Winkel warned that a system that ignores demographic changes cannot function in the long run and that the current legislative period presents the “last chance for structural reforms before the costs of the demographic shift become unsustainable.