German Labour Minister defends pension reforms amid coalition disputes

A bold pension reform plan splits Germany’s leaders. Will Bas’s guarantee secure futures—or deepen divisions in an already fragile coalition?

, and Administrator

2025 November 26 . 1:01 PM

1 min read

These are the drawings on the roof, in the right side these are the walls.

German Labour Minister defends pension reforms amid coalition disputes

German Labour Minister Barbara Bas has defended her proposed pension reforms at a major employers’ conference. The plan to extend the pension level guarantee until 2031 has sparked debate within the governing coalition. Bas argued the changes would protect financial security for all generations, not just current retirees.

The current dispute focuses on the pension level guarantee, which the government wants to extend until 2031 before reintroducing a sustainability factor. Bas described the recent debate as chaotic and warned it could erode public trust in social security. She stressed that pensions serve as a vital safety net, especially in eastern Germany, where 75% of people rely solely on state payments.

Bas insisted the guarantee is not a handout but a core promise to safeguard incomes in retirement. She also clarified that the policy is funded by tax revenue and does not place extra strain on those currently paying into the system. However, opposition has emerged within the coalition, particularly from younger CDU/CSU MPs who argue the guarantee’s effects would last far beyond 2031.

Chancellor Friedrich Merz has also expressed uncertainty about the extension, leaving the coalition divided. Despite Bas’s defence, a clear majority within the government has yet to back the reform.

The pension reform debate remains unresolved, with key figures in the coalition still undecided. Bas’s proposal aims to secure long-term stability, but disagreements over its scope and funding continue. The outcome will determine how pensions are structured for future retirees.