East German CDU ministers reject federal pension reforms

Federal Economics Minister Katherina Reiche defended the federal government's pension plans against criticism from East German CDU minister-presidents. She reiterated the government's stance that longer working lives are necessary to secure the system. East German states, including Saxony-Anhalt, are increasingly opposing the coalition's pension reforms, particularly the proposed end to early retirement and the future of the deduction-free pension after 45 contribution years. The rift reflects broader tensions within the Union over financing and social fairness. The dispute matters now because it threatens coalition cohesion at a moment when Chancellor Merz must balance pension sustainability with climate policy and industrial challenges like BASF's job cuts in Ludwigshafen. An upcoming coalition committee meeting on 13 November 2025 will test whether consensus can be reached.

Reiche defends pension reforms amid eastern state opposition

Federal Economics Minister Katherina Reiche defended the government's pension reforms against sharp criticism from East German CDU minister-presidents. Reiche, in office since 6 May 2025, argued that extending working life is essential to safeguard the pension system's long-term stability. Her stance contrasts with eastern state leaders, including Saxony-Anhalt's minister-president, who resist ending early retirement schemes and raising the retirement age above 67. SPD General Secretary Klüssendorf has voiced support for maintaining a deduction-free pension after 45 contribution years. Employer groups have previously warned that similar pension proposals could increase fiscal pressure. The debate intensified ahead of a coalition committee meeting on 13 November 2025, where Union and SPD officials planned to discuss outstanding disputes. BR24 highlighted community concerns about retirement age beyond 67 and the future of the 'Rente mit 63' scheme. Reiche's position underscores a growing rift within the governing coalition over the pace and scope of pension restructuring.

1. 2017-01

   January 2017

2. 2025-05-06

   6 May 2025

3. 2025-11-13

   13 November 2025

Coalition rifts over pension financing and early retirement

East German CDU ministers reject federal pension reforms that raise retirement age beyond 67 and end early retirement options. Katherina Reiche defends the plans, arguing longer working lives are necessary. SPD General Secretary Klüssendorf demands retention of a deduction-free pension after 45 contribution years. Wilhelm Gebhard proposes politicians contribute to the pension fund. Employers warn of unsustainable costs. The coalition committee meeting on 13 November 2025 will address these unresolved disputes. East German states oppose the reforms, highlighting regional tensions.

BASF job cuts and broader economic implications

BASF is cutting thousands of jobs at its Ludwigshafen site under socially negotiated agreements. Employer representatives previously warned that former Labour Minister Andrea Nahles' pension proposals would increase costs for taxpayers and contribution payers, a concern that resurfaced amid the current debate. The federal government's pension plans, which aim for a longer working life and a deduction-free pension after 45 contribution years, could complicate the job reductions. East German CDU minister-presidents oppose the plans, arguing they threaten early retirement schemes like the 'Rente mit 63'. Wilhelm Gebhard, a CDU Bundestag member, has proposed that politicians pay into the pension insurance fund amid broader disputes over social reforms and financing. The coalition committee meeting on 13 November 2025 will address these unresolved tensions.

Upcoming coalition committee meeting to address unresolved disputes

Union and SPD leaders will meet on 13 November 2025 in a coalition committee to resolve remaining disputes over pension policy. The talks will focus on the future of “Rente mit 63” and the limits of early‑retirement exceptions, which have divided eastern CDU ministers from the federal government. Chancellor Friedrich Merz and Labour Minister Hubertus Bas are under pressure to reconcile industry concerns with demands from eastern states that oppose cuts to early retirement. While the coalition has agreed on a broad framework, differences over financing and the proposed extension of working life remain unresolved. The outcome will shape the government’s ability to push further reforms, including climate‑linked economic measures, while maintaining political stability across the Länder.

Frequently asked questions