Reduced pension benefits for senior citizens, too

The German government, led by Chancellor Friedrich Merz, has unveiled plans for drastic changes to the country's social welfare system, sparking criticism from various quarters.

At the heart of these reforms are proposals to make significant cuts to unemployment benefits and pensions. The standard rate for unemployment benefits, currently at 563 euros per month, is not expected to increase next year, and harsher sanctions for non-compliance, such as missing appointments or turning down job offers, are being considered.

Similarly, the standard rate for pensions is not expected to rise next year. The CDU's Minister of Economics, Katharina Reiche, has proposed increasing the retirement age to 70, a move that could affect many pensioners.

These reforms, if implemented, may lead to a decrease in the standard of living for both unemployed individuals and pensioners. Critics argue that the coalition's social reform plans are going in the wrong direction, disproportionately affecting the socially disadvantaged.

Experts and social associations demand a guarantee of the minimum existence for all, highlighting the potential hardships these reforms could impose. There is ongoing criticism from various sides about the planned social reforms, with many questioning the fairness and effectiveness of the proposed changes.

However, Chancellor Merz advocates for more personal responsibility in the context of social reforms. He has rejected tax increases for wealthier citizens and aims to save approximately 5 billion euros from the social budget, representing a 10% reduction.

In an effort to soften the impact of these reforms, the government has introduced the "active pension". This allows pensioners to earn up to 2,000 euros per month tax-free while working voluntarily for longer.

Looking ahead, a pension commission will address at least one problem from 2026 onwards. The commission, comprising experts, is expected to propose ways for a larger pension reform that could potentially mitigate the effects of the proposed cuts.

The black-red coalition, led by Chancellor Friedrich Merz, is facing increasing opposition due to these planned reforms in social welfare. The opposition raises concerns about the potential impact on the most vulnerable sections of society and calls for a more balanced approach to social reform.