A deepening row over pension reforms is threatening the stability of Germany's coalition government, as a group of young MPs from the conservative Junge Union pushes back against proposed legislation they argue unfairly burdens younger generations. The rebels, led by 28-year-old Johannes Volkmann—grandson of former chancellor Helmut Kohl—claim the plans would saddle their age group with unsustainable costs.
The legislation, backed by Chancellor Friedrich Merz, would guarantee pension increases for the next six years. However, Volkmann and 17 other MPs from the Junge Union warn that the proposals would add approximately €120 billion (£105 billion) in costs by 2040. 'This is simply fiscally unsustainable,' Volkmann said, adding that the burden would fall on his generation.
With Merz holding a slim majority of just 12 seats in the 630-seat Bundestag, the rebellion poses a significant threat. The number of potential dissenters could rise to between 40 and 50, including older MPs who also question the plans. The vote is scheduled for December, and deadlock could derail other key reforms, such as incentives for retirees to continue working.
Germany's ageing population exacerbates the crisis: currently, only about two workers support each pensioner, down from three in recent years and six in the 1950s. Compulsory pension contributions have risen to nearly 19% of salaries and are set to increase further under the current plans. Retirees receive about 48% of their average salary as a pension, which experts say is unsustainable as the working-age population shrinks.
Addressing a Junge Union gathering, Merz defended the package, stating he would 'vote in favour with a clear conscience.' However, Volkmann claimed Merz acknowledged that the rebels' demands 'make sense,' casting doubt on the chancellor's resolve. Polls indicate widespread lack of confidence in future pensions across all age groups, with many Germans expecting to work beyond the retirement age of 67.
