The head of Germany’s largest trade union confederation, DGB, Yasmin Fahimi, has sharply criticized proposals put forward by the president of the German Institute for Economic Research (DIW), Marcel Fratzscher, regarding the country’s pension system. In comments to the “Tagesspiegel” newspaper, Fahimi described the suggestions as “degrading” an infringement on individual liberty and a “new low” for the DIW. She stated that such proposals demonstrate a disconnect from the realities faced by ordinary citizens.
Fahimi’s criticisms specifically target recent DIW ideas, including a proposed “boomer solidarity levy” and a mandatory retirement year, both intended to enhance intergenerational equity within the pension system. She equated them with proposals from employer associations, such as the introduction of so-called care leave periods.
Pointing to mortality rates among those requiring care, Fahimi argued that a year-long waiting period for benefits, as suggested by the Federal Association of German Employers’ Associations (BDA), would effectively deny support to vulnerable individuals. “Over a fifth of those requiring care die within the first twelve months” she stated, claiming the proposal relies on thousands of people losing access to benefits they paid into for years. She characterized this as “perfidious.
The BDA recently advocated for a radical overhaul of the care system, including the implementation of care leave periods, with the aim of reducing contributions from companies and employees.