ruth901
“At best, basic coverage”Merz straightens out pension statement: No cuts planned
Chancellor Friedrich Merz (CDU), speaks at the 41st federal conference of the Christian Democratic Workers' Union (CDA). The motto is “80 years of CDA – 80 years of social market economy”
picture alliance/dpa / Florian Wiegand
The Chancellor clears the air at the banking association: In the future, the pension can “at best be the basic security for old age”. Loud criticism is the result. A few days later, Friedrich Merz tries to capture his words again.
Chancellor Friedrich Merz has reiterated his call for strengthening private pension provision, but at the same time rejected allegations that his description of the statutory pension as mere “basic security” is aimed at cutting the pension system. “With us there will be no cuts in statutory pensions. There will be no cuts,” said Merz at midday in a speech at the federal conference of the Christian Democratic Workers' Association of Germany in Marburg. That was always clear.
At the same time, the Chancellor thanked the SPD for the fact that there is no longer any need to talk about pension lines, but rather about “a new overall level of provision”. In it, Merz would like to put the three pillars of retirement provision – statutory pension insurance, company pension provision and private provision – “into a new relationship with each other”. There must be a “greater emphasis on capital market-backed pension systems” so that employees “also have the chance to participate in the overall wealth development of our economy,” said Merz in Marburg.
Merz said at an event organized by the banking association on Monday that in the future the pension could “at best be the basic security for old age”. “It will no longer be enough to secure living standards.”
With this statement, the Chancellor has since met with sharp criticism, particularly from his coalition partner, the SPD. Federal Finance Minister Lars Klingbeil's advisor, Jens Südekum, said: “The statutory pension is not just basic insurance, but rather the only source of income for many old people.” At the same time, the economist admitted in the “Rheinische Post” that Merz was right that private pension provision would have to play a greater role for future generations. “But that doesn’t call into question the role of the first pillar, the statutory pension.”
CDA boss Dennis Radtke had also warned the Chancellor against causing uncertainty among citizens. “We have to stop scaring people,” said the head of the Union’s social wing to the editorial network Germany (RND).
The Chancellor, however, received support from the head of the economists, Monika Schnitzer. “Chancellor Friedrich Merz’s statement can be understood as an indication of the growing pressure to reform the pension system,” she told the “Rheinische Post”. “Overall, private provision must be given significantly greater importance in the future in order to effectively supplement the statutory pension.”
Sources used: chr/AFP
