"Social policy milestone" – GroKo agrees in the dispute over basic pension
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People with a small pension can hope: After months of strife, the grand coalition has agreed on a compromise on the basic pension. The main point of contention was, to the end, to what extent the neediness should be examined.
NAfter months of negotiations, the grand coalition has settled its dispute over the basic pension. The leaders of the CDU, CSU and SPD agreed on a compromise on Sunday after more than five hours of negotiations.
The three party leaders Annegret Kramp-Karrenbauer (CDU), Markus SOder (CSU) and Malu Dreyer (SPD) introduced him to the Chancellery.
Kramp-Karrenbauer had recognized the agreement of the coalition leaders as an important contribution to the fight against old-age poverty. After long negotiations, they broke through a thick knot and found a solution that was also justifiable for the CDU.
Access to the new system will get the one who has a need, said Kramp-Karrenbauer. This need is ensured by a comprehensive income test. "It's a good, a justifiable result," she said. Lifetime achievement is now better recognized.
The Union had demanded a means test as a condition for the basic pension. The SPD was against it. It was not a simple negotiation for all, so the CDU chairman. On Monday she wants to submit the compromise to the CDU committees for decision.
"Basic pension is a social policy milestone"
For the acting SPD-chairman Malu Dreyer (SPD) the basic pension is a "socio-political milestone". With the basic pension pensioners should get a supplement, which have 35 contribution years and whose contribution is less than 80 percent, but more than 30 percent of the average income. Here, an income tax allowance of 1250 euros for singles and 1950 euros for couples apply.
An accompanying package provides for measures to strengthen occupational and private pensions. As an economic stimulus, the contribution to unemployment insurance will be reduced to 2.4 percent and an investment fund for future technologies will be launched.
Dreyer expects that the basic pension "from 1 January 2021 between 1.2 and 1.5 million people" will reach. "Four out of five will be women." For them, the basic pension is a strong signal.
The comprehensive income test should be technically handled through a cooperation between the pension insurance and the financial administration. Dreyer also emphasized how different the directions were from which the SPD and the Union came.
"The cow is off the ice"
In addition to the basic pension, the Coalition also wants to introduce a free allowance for housing subsidies with a volume of around 80 million euros. This is to prevent that the improvement in the pension is not eaten by a reduction of the housing allowance.
CSU boss Markus SOder said the cost of the basic pension should be between one and 1.5 billion euros. The compromise had "perfectly rounded off" the mid-term review of the grand coalition. SOder said, "the cow is off the ice", it's a "genuine package of justice and benefits". SOder pointed out that the coalition has also agreed to a reduction in contributions to unemployment insurance.
Vice Chancellor Olaf Scholz (SPD) was also satisfied with the compromise. "It's a good deal." The long work was worth it, he said, looking ahead to the months-long negotiations. "Germany gets a basic pension, socially and fairly."
In addition, the coalition wants to set up a participation fund for future technologies, especially in the areas of digitization and climate technologies – "growing up to ten billion euros". Kramp-Karrenbauer emphasized that the compromise was also a "clear signal for economic dynamism".