Finance Minister Lindner introduces a pension plan for approval.
The federal government's pension plan might get approval from the cabinet on Wednesday. Sources from the government have revealed to Deutsche Presse-Agentur that the Ministry of Finance gave its approvals on Friday, prior to the internal government debates over the budget.
According to these informants, after the recent internal discussions regarding the federal budget and Chancellor's commitment to the financial aspects, concerns have been momentarily addressed. Nevertheless, more adjustments to the pension system are necessary in the long run.
Labour Minister Hubertus Heil (SPD) and Finance Minister Christian Lindner (FDP) are behind the proposed pension package to maintain the current pension level and curb the expected rise in pension contributions by investing in the capital market. The original plan to initiate this reform was scheduled for May 8, but it got stalled when the Ministry of Finance declined to approve it in the cabinet due to several ministries submitting large budget requests for 2025. Lindner insisted on a stringent austerity path.
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Despite the Ministry of Finance's approval, some concerns about the pension package still persist among government officials. According to Lindner, a resolution for the pension plan's approval by the cabinet is expected soon, thanks to the adjustments made to address initial concerns and the implementation of a pension package that aims to maintain current pension levels while limiting future pension contribution increases by investing in the capital market.
Source: www.ntv.de
