A former leader of the Social Democratic Party (SPD), Sigmar Gabriel, has called on the current coalition government to undertake reforms of Germany’s social security systems. In an interview with “Bild am Sonntag”, Gabriel proposed linking pension adjustments to the inflation rate, a change he believes would lead to more moderate increases compared to the current formula.
He stated that as a society ages and the birth rate declines, the pension system inevitably faces challenges. Gabriel argued that one potential solution is to limit pension increases to the level of inflation, ensuring that pensioners do not lose purchasing power but also preventing further rises. “Simply because the younger generation can’s afford it” he noted.
Furthermore, Gabriel suggested the introduction of an existence minimum for children within the social insurance system. Under this proposal, parents would not be required to pay social insurance contributions for their children up to a certain threshold. He believes this approach would streamline various existing support programs for families and enable working parents to support their families without reliance on state assistance.
Gabriel expressed optimism that the SPD, now led by Vice-Chancellor and Party Leader Lars Klingbeil, is open to significant reforms. He highlighted Klingbeil’s recent praise of the Agenda 2010, a series of labor market reforms implemented under former Chancellor Gerhard Schröder, as an indication that the party is prepared for change. He suggested that embracing the legacy of Agenda 2010 would make it difficult to criticize a potential “Agenda 2030”.