(de-news.net)- Senior representatives of the Social Democratic Party (SPD) and Alliance 90/The Greens have expressed firm opposition to recent assessments made by economist Veronika Grimm regarding the future of Germany’s social insurance systems. Grimm had reportedly argued that, in light of mounting fiscal pressures, reductions in benefits across pension, healthcare, and elder care schemes would be unavoidable. She is understood to have cited the pension “stop line” as an example of a provision that may no longer be financially viable and suggested that individuals capable of covering care costs independently should be expected to do so. Her position emphasized the need for greater transparency about the limits of public affordability.

Members of the governing coalition have challenged this perspective. SPD parliamentary manager Dirk Wiese is said to have characterized Grimm’s approach as neoliberal and overly reductive, asserting that policy solutions should not be confined to diminishing public support. He reportedly referred to the coalition’s intention to establish a commission tasked with formulating comprehensive reforms to the welfare state, with recommendations expected by the end of the year.

Andreas Audretsch, deputy parliamentary leader of the Greens, also rejected Grimm’s proposals. He is understood to have warned that further pension reductions could result in increased poverty, particularly among women in eastern Germany, who are disproportionately reliant on statutory pensions. Audretsch reportedly underscored the importance of maintaining the pension level at 48 percent and advocated for alternative measures to strengthen the system, including expanding full-time employment opportunities for women and improving labor market access for migrants. He also called for a restructuring of private retirement schemes, noting the shortcomings of the Riester model.

In parallel, the federal cabinet has introduced a pension reform law aimed at securing stable pension levels until 2031 and enhancing benefits for mothers. Although the improvements are to be partially financed through tax revenues, the legislation stipulates that both employers and employees will face modest increases in contribution rates beginning in 2027. Broader structural reforms are expected to be addressed by the commission once convened.