Chancellor Friedrich Merz (CDU) and Social Affairs Minister Bärbel Bas (SPD) have recently shown demonstrative unity in implementing the recommendations of a pension commission. Merz spoke of a “momentum” for reform efforts and expressed confidence for the coming days. CDU parliamentary group managing director Steffen Bilger (CDU) announced a “sprint mode” to finalize key reforms.
In addition to pensions, stabilizing the statutory health insurance and long-term care insurance is on the agenda. A major reform of income tax is also planned, aimed at relieving small and medium incomes. Former Federal President Joachim Gauck called for more determination in the “Welt am Sonntag”: “Action must be taken now. Then there could also be a shift in mood.”
The chairwoman of the “Council of Economic Experts,” Monika Schnitzer, praised the pension signal as the strongest reform signal so far. She hopes that the courage for reforms will also extend to health and care. After the coalition committee, further stages are ahead: On July 6, Finance Minister Lars Klingbeil (SPD) plans to present the government draft for the 2027 budget, for which gaps still need to be closed.
To finance the package, spirits such as rum, vodka, and Korn are to be taxed more heavily, while the beer tax remains unchanged. For housing benefits, a savings contribution of 1.5 billion euros is planned for 2027. The social welfare association VdK warned of one of the largest social cuts in recent years. Verena Bentele emphasized that many recipients are seniors with small pensions and families without reserves.
Source: Stadt München
