Pension Dispute: Friedrich Merz Defends Pension Reform Draft Bill Amidst Internal Party Opposition
Berlin, Germany – November 16, 2025 – Christian Democratic Union (CDU) leader Friedrich Merz is standing firm on his proposed draft bill for pension reform, despite growing dissent within his own party, especially from teh Young Union (Junge Union). Merz addressed the Junge Union’s Deutschlandtag today, warning against a “race to the bottom” in pension policy and reiterating the necessity of his plan to secure the long-term stability of Germany’s retirement system.
The escalating dispute centers on the future of Germany’s statutory retirement age and contribution rates. Merz’s draft bill aims to address the demographic challenges facing the pension system – a shrinking workforce supporting a growing number of retirees – thru a combination of measures, including a gradual increase in the entry age and potential adjustments to contribution levels. This approach has sparked criticism from the Junge Union, who fear it could disproportionately impact younger generations entering the workforce. The debate underscores a basic tension within the CDU regarding the balance between fiscal duty and social equity.
At the Deutschlandtag, Merz cautioned the Junge Union against engaging in an “undercutting competition” regarding pension proposals, signaling his determination to push forward with his plan. He emphasized the urgency of addressing the pension system’s financial vulnerabilities, warning that inaction would jeopardize the future of Germany’s social security net.
Recent reporting by Zeit Online highlights the internal divisions,with articles detailing the contentious debate surrounding the proposed reforms. One article, published November 16, 2025, focuses on the broader “pension dispute,” while another, also from Zeit Online on the same date, frames the disagreement as a challenge to Merz’s leadership, with the headline “Not like that, friends!” the articles indicate that the Junge Union is advocating for alternative solutions that prioritize affordability for younger workers, possibly through different mechanisms for revenue generation or benefit adjustments.
