Merz would serve as the head of a ministry in the role of chancellor.
At the upcoming national election, Friedrich Merz, the Union's pick for Chancellor, has set his sights on some major reforms if he wins. Particularly in the realm of pensions and the consolidation of certain ministries to prevent future "outlandish proposals."
The proposed merger of the Economics and Labor Ministry will also result in a broad-spectrum hiring freeze across the federal administration. "Labor market policy is economic policy, not social policy," Merz stated at the Union's Youth Day gathering. This platform would eliminate the possibility of introducing a universal basic income due to the combined responsibilities. He also calls for a "regulatory moratorium," requiring two existing rules to be eliminated for every new one that's introduced.
In the case of victory, Merz intends to put a temporary halt on federal employment hires, with an emphasis on ministerial departments. While acknowledging that essential positions must still be staffed, he emphasizes his view that Germany's public sector has grown excessively large. In addition, the current coalition government has expanded the number of ministry employees, a trend that Merz hopes to curtail.
To discourage early retirement, Merz suggests that those who opt for it should be prepared to accept reduced benefits. While maintaining the age of 67 as the legal retirement age, he advocates for increased incentives for employees who choose to work beyond that age.
Emphasizing his commitment to the young generation, Merz rejects the concept of pension policy that favors future generations over current ones. He envisions promoting early investment in personal capital-based retirement plans and supports mandatory health and long-term care insurance reforms, advocating for a shift towards greater personal responsibility. These proposals are slated to form part of the Union's campaign platform, with proposals for increased funding in both systems.
The Youth Union, a wing of the Union, demands substantial pension policy changes to avoid placing undue burdens on young generations. Concluding that a link between retirement age and life expectancy is necessary to strengthen the pay-as-you-go pension system, the Youth Union calls for the retirement age to be adjusted periodically to match the life expectancy of the population.
In addition, the Youth Union advocates for the elimination of the "dual retirement line" beyond 2025. Established to ensure a 48% minimum retirement threshold and a 20% maximum contribution rate, the Youth Union's resolution suggests returning to the previous limit of 43% to create a more balanced burden distribution among generations.
If Merz's CDU wins the election, they intend to freeze hiring in ministerial departments to reduce the size of the public sector. Additionally, Merz's CDU supports the Youth Union's call to adjust the retirement age periodically to match life expectancy, aiming to balance the burden distribution among generations.
