The youth wing of Germany’s conservative CDU, the Junge Union (JU), is escalating tensions with the ruling Social Democratic-led coalition government, demanding a freeze and subsequent reduction in social security contributions. The demands, outlined in a draft resolution for the JU’s upcoming “Germany Day” conference, sharply criticize the government’s perceived inaction on crucial structural reforms within the social security system.
The JU’s core proposal calls for a moratorium on further increases in contribution rates during the current legislative period, followed by a medium-term reduction to a maximum of 40% of gross wages. The organization argues that the current high levels of “labor-related costs” are actively hindering economic growth and risk pushing the nation toward unsustainable levels of taxation and social spending.
Critics within the JU contend the coalition government has repeatedly failed to address the systemic issues plaguing the social security apparatus. The resolution explicitly accuses the government of neglecting essential reforms, highlighting a lack of political courage to undertake necessary consolidations. Failure to act, the JU warns, will further erode public trust in the state’s ability to implement meaningful change and jeopardize the intergenerational social contract.
Beyond contribution rates, the JU is challenging the government’s approach to pension reform. The organization is advocating for the removal of Labor Minister Bärbel Bas (SPD) from responsibility for the planned pension commission, demanding it be elevated to a “top-priority” concern for the Chancellery. The JU proposes a streamlined commission with a clear political mandate and a strict timeline, expecting results by June 2026.
The proposed policy shifts also include linking the retirement age to life expectancy, implementing a graduated increase of nine months for every year of increased life expectancy beginning in 2031, alongside a hardship clause for those with health limitations. Furthermore, penalties for early retirement would double to 0.6% per month and the JU proposes measures – including a temporary reduction in wage replacement payments – to combat absenteeism and potential abuse within the health insurance system.
Perhaps most controversially, the JU advocates for a mandatory private supplemental long-term care insurance policy with an opt-out provision, reflecting the ongoing anxieties surrounding the cost and sustainability of the current state-provided care system.
The JU’s increasingly assertive stance is likely to add significant pressure on the government, especially given the imminent attendance of CDU leader Friedrich Merz at the conference in Rust. The hardline rhetoric coming from the JU, especially remarks from the “Young Group” within the CDU-CSU parliamentary group already deeming the government’s pension plan unacceptable, signals a heightened risk of internal party divisions and policy gridlock. The coming weeks are expected to see intense debate surrounding the government’s social security agenda and the JU’s demands.