FDP Maintains Unity Despite Disagreements over Pension Matters
There's some unrest within the governing alliance, but FDP leader Bijan Djir-Sarai dismisses one possibility: The three-colored coalition won't fall apart over the pension disagreement. Economic difficulties in the nation offer other chances for disagreement.
During an interview on ntv's Morgenmagazin, Djir-Sarai ruled out that his party would be the cause of the coalition's downfall in the pension matter. He sharply stated no. Pension policy is a factor in economic growth, which is why the nation requires a stable pension system. According to Djir-Sarai, if retirement savings contributions increase, Germans would have "concretely less net" income.
Increasing contribution rates would negatively impact economic growth. When asked about specific modifications the liberals aim to produce with Pension Package II, Djir-Sarai was vague. "Drawing lines now and saying exactly what will apply in the coming years would surely cause contributions to rise," he said, warning against this.
Djir-Sarai urged the government to promptly implement the main points of an economic plan. Lingering to see what's needed following the next federal election is not an option. "If you want to see the economic recovery again next year (...) or better development, then actions must be taken now," he said. These reforms should've been handled earlier. "The sooner we act now, the more crucial it is that a genuine economic turnaround takes place," Djir-Sarai added.
He expressed greater frustration over the Social Democrats' tax proposals. SPD co-chair Saskia Esken had advocated for a rise in the top tax rate and a wealth tax. Djir-Sarai noted Germany's high-tax status. "Nowhere are taxes and burdens on individuals, businesses and companies as high as in Germany," he said. Djir-Sarai also commented, "We know that taxes in Germany already present a significant disadvantage for Germany's economic location." Increasing the tax burden even further would be problematic.
Despite the ongoing tension within the governing alliance, Djir-Sarai assures that the FDP will not contribute to the coalition's collapse over the pension disagreement. He also emphasizes the importance of pension insurance in economic growth, stating that a stable pension system is crucial. Furthermore, he cautions against increasing retirement savings contributions due to their potential negative impact on net income.
