A coalition of 21 leading economists and academics is urgently calling for the German government to abandon its proposed pension reform package, citing concerns over fiscal stability and public trust. The appeal, titled “Withdraw the Pension Package” argues that the current plan, a complex combination of measures including a pension level freeze, the “mothers’ pension” the “active pension” and an early start pension, fails to meet the criteria of a robust and predictable pension policy.
In a joint opinion piece published in the Handelsblatt, three prominent signatories – Michael Eilfort (Managing Director of the Foundation for Market Economy), Clemens Fuest (President of the Ifo Institute) and Jörg Rocholl (Chairman of the Scientific Advisory Board at the Federal Ministry of Finance) – directly challenge the rationale behind the reform plans. They assert that the proposed measures, particularly the pension level freeze and the expansion of the mothers’ pension, place an unsustainable burden on public finances.
The economists express profound concerns about the potential political ramifications of pushing forward with the current framework. They warn that forcefully implementing policies destined to create significant negative financial consequences in a few years’ time would severely erode public confidence in the government. The move, critics argue, risks destabilizing a system already grappling with demographic challenges and an aging population.
Instead of immediate action, the signatories advocate for a long-term, strategic approach. They contend that maintaining the current legal framework and allowing existing mechanisms to function is preferable to implementing a flawed and financially precarious reform. The established Pensions Commission, they suggest, provides a suitable forum for developing a truly sustainable and fiscally responsible reform. The academics’ critique represents a significant challenge to the government’s reform agenda and underscores the politically charged nature of pension policy in Germany.