The burgeoning dissent within Germany’s conservative CDU/CSU parliamentary group over proposed pension reforms has gained significant intellectual backing, with renowned economist Axel Börsch-Supan publicly endorsing the stance of younger MPs threatening to block the government’s plan. Börsch-Supan, a leading expert on pension systems, asserted that the government’s ambition to maintain the current pension level until 2031 represents a “massive additional burden” disproportionately impacting the younger generation.
The controversial legislation, designed to stabilize the pension level, is projected to necessitate substantial increases in contributions and tax subsidies, exacerbating existing concerns about the financial future of younger workers who will be shouldering the cost of an aging population. A faction of CDU/CSU parliamentarians has signaled their intention to obstruct the passage of the pension package, arguing that it places an unfair weight on the shoulders of younger citizens.
Börsch-Supan’s support for this position marks a notable challenge to Chancellor Friedrich Merz’s leadership. The economist contends that the proposed policy represents a departure from Merz’s initial pledge to govern for the benefit of all generations. He advocates for a more targeted approach, suggesting that pension level stability should be prioritized only for low-income earners, recognizing their greater need for financial security in retirement. He further believes that those already financially comfortable in retirement should contribute more significantly to managing the demographic shift.
The economist’s critique underscores a growing rift within the conservative bloc, potentially jeopardizing the government’s legislative agenda and raising fundamental questions about intergenerational fairness in German social policy. The internal debate highlights a growing political tension: how to balance the demands of an aging electorate with the economic realities faced by younger generations and the long-term sustainability of the welfare state.