(de-news.net) – Despite objections from the Union Bundestag faction’s Young Group, the coalition committee has declared its determination to maintain the current pension scheme. Chancellor Friedrich Merz stated that the draft legislation was to be presented to parliament in its existing form and would not be altered at the request of the SPD. Merz clarified that a resolution highlighting the need for additional reforms would be tabled alongside the measure. It was anticipated that this resolution would require the pension panel, which had already been announced, to submit preliminary recommendations by the middle of 2026.

The resolution, according to observers, seemed to be a reaction to the 18 younger Union members’ objections, whose backing was thought to be crucial for the alliance to win a Bundestag majority. According to reports, SPD co-chair Lars Klingbeil was satisfied with the coalition’s choices and emphasized that the pension protective barrier will not change. While the Federal Minister of Finance expressed opness to more comprehensive reform initiatives, he noted that one in five pensioners were presently at risk of poverty.

Additionally, the coalition decided to improve private retirement benefits. Ten billion euros would be allotted by the Federal Government for this purpose, according to the decision paper.

On Friday morning, Merz delivered the outcomes of the coalition committee’s discussions with CSU leader Markus Söder as well as Klingbeil. It was announced that the Bundestag would pass the pension plan with a long-term guarantee. A pension committee was to be constituted before the end of the year as a compromise to the Young Union. By the middle of 2026, the said organization was expected to produce reform ideas that included an examination of how various reform approaches affected various population categories.

The commission was not meant to be symbolic only, Söder said. He emphasized that younger members of parliament were to play a key role in the process and that there would be no limitations on potential reform suggestions. It was decided that at its meeting on Tuesday of next week, the Union parliamentary group will make a final decision. Merz stated that he anticipated support but acknowledged that it might be necessary to make more efforts over the weekend to convince members still in disagreement.