Coalition Faces Tough Talks on Pensions, Taxes Ahead of September Session

The party leadership will meet in Münster in the coming days to finalize the details of an already-agreed reform package. The goal of the retreat at the Aasee is to find a common line, which has been partially lost recently. Starting in September, when the Bundestag's session-free period ends, the black-red coalition's reform plans will be on the parliamentary agenda.

Recently, there has been disagreement over the income tax plans of Finance Minister Lars Klingbeil (SPD). Parts of the CDU/CSU bloc felt the relief agreed upon by the coalition leadership was insufficient. On pension reform, pressure is coming mainly from the states.

Four East German state premiers—three from the CDU and one from the SPD—are resisting the planned abolition of the pension without deductions after 45 years of contributions. At the cabinet retreat in Neuhardenberg, Chancellor Friedrich Merz (CDU) made a clear statement, rejecting the retention of the so-called 'pension at 63'. He only considers hardship rules possible. The SPD leadership holds a similar view.