Bundestag Secures Pension Law Passage Amidst Coalition Discord
BERLIN – In a closely watched vote, the German Bundestag passed a pension law today, December 6th, 2025, with an absolute majority, ensuring the stabilization of pension levels at 48 percent by 2031. The vote came after weeks of internal coalition disputes and opposition from both the left-wing and right-wing factions of the parliament.
The bill,championed by minister Bas,secured it’s passage despite abstentions from the left-wing faction and outright rejection from the Greens and the AfD. A key concern within the governing coalition centered on the financial implications of the law, with the Young Group within the Union parliamentary group voicing strong objections to the expected billions in expenditure, arguing it unfairly burdens younger generations.
“The need for pension reform in Germany will not be smaller as an inevitable result of the Bundestag decision, but will be even greater,” stated Junge Union chairman Winkel in an interview with Der Spiegel. Business associations echoed these concerns,criticizing the postponement of significant pension system reforms. Though, the social association VdK welcomed the decision, asserting it would protect pensioners from declining purchasing power in the coming years.
Chancellor Merz emphasized that today’s vote represents a first step, renewing his commitment to a “very complete pension reform” next year. “The decision in the Bundestag was not the end of our pension policy, but just the beginning,” Merz said, outlining plans for an expert commission to formulate proposals, followed by swift governmental action. the commission is slated to be established this year, as agreed upon by the coalition committee last week.
Merz acknowledged the challenges ahead, stating the goal is to ensure the welfare state remains affordable, efficient, and fair to all generations.
Alongside the core pension stabilization law, the Bundestag also approved drafts for active pensions – designed to incentivize longer working hours through tax benefits – and measures to bolster company pensions. The complete pension package is scheduled to take effect on January 1, 2026, pending approval from the Federal Council in two weeks.
