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Germany: Will pensions standoff bring Merz's government into question?

FILE: German Chancellor Friedrich Merz gives the keynote speech at the annual reception of the Thuringian CDU parliamentary group in Weimar, 4 November 2025
FILE: German Chancellor Friedrich Merz gives the keynote speech at the annual reception of the Thuringian CDU parliamentary group in Weimar, 4 November 2025 Copyright  AP Photo
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By Euronews
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At the annual meeting of the Junge Union, the joint youth organisation of the CDU/CSU ruling coalition, the divide between delegates and Merz widened — especially when it came to pension reform policy.

German Chancellor Friedrich Merz backed the government's pension reform package on Sunday, putting him at odds with the Junge Union youth wing of his party, which opposes the legislation.

"Yes, I will vote in favour of this pension package with a clear conscience when it comes to a vote in the German Bundestag," Merz said at the Junge Union's Germany Day in Rust, southern Baden.

He said the reform was only the prelude to a more comprehensive debate on fundamental changes in the welfare state. The reorganisation of the pension system must take place during this legislative period, which has already been agreed within the coalition, he said.

Merz also emphasised in his speech that there would be no cooperation of any kind between his party and the AfD. "Not because there is a firewall - forget that word! We are worlds apart from this party," he said. "We have nothing in common with them."

The 18 members of parliament from the Junge Union had made clear in October they would not vote for the pension package in its current form.

Controversial pension reform bill

Their central criticism is that the draft by Labour Minister Bärbel Bas would incur additional costs of €120 billion between 2032 and 2040, going beyond what was agreed in the coalition agreement. They had only agreed to stabilise the pension level initially until 2031.

The Junge Union had hoped Merz would renegotiate the pension package, after he had been signalling this to them for some time. But in Rust, he clearly rejected these expectations.

Johannes Winkel, the association's leader, recalled on Friday evening that without the Junge Union, Merz would neither have become CDU chairman nor Federal Chancellor.

Merz appealed to delegates to get involved in the debate "but please don't just say what won't work". He rejected a political underbidding contest in which everyone competed to offer the lowest pension level. "That, dear friends, will not win us any elections," he said.

Kevin Gniosdorz, state chairman of the Junge Union in North Rhine-Westphalia, reminded Merz they were "playing as a team". Just as the Junge Union had always "stood by Merz's side", he must now also "stand by the side of the Junge Union", he said.

Another delegate referred to Finance Minister Lars Klingbeil, who confirmed at the SPD state party conference in Ulm that there would be no changes to the pension package. He called on Merz to remind his vice-chancellor of "the chancellor's authority to issue directives".

Pascal Reddig, Chairman of the Young Group in the Bundestag, made clear the Young Group will stand by its rejection of the pension package. "You can count on it: We will stand firm on this issue," he said.

Delegates thanked him with a standing ovation and loud, rhythmic applause.

The conflict that originally arose between the young CDU/CSU MPs and SPD Social Affairs Minister Bärbel Bas has developed into an open dispute with the Chancellor.

The young CDU/CSU MPs can also rely on support from other socio-politically oriented groups within the CDU/CSU parliamentary group. At the last meeting of the Young Group in Berlin, around 30 other CDU/CSU MPs showed solidarity.

This would make a majority in favour of the pension package almost impossible to achieve and a government crisis unstoppable.

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