Three Eastern German Minister-Presidents Demand from Merz Pensions with Trust Protection and Family-Friendly Tax Law

Pensions with Trust Protection for Eastern Germany

At the center of the pension demands are transitional periods that take into account the employment biographies in Eastern Germany. According to the paper, these include extended trust protection for cohorts approaching retirement age as well as a hardship provision that recognizes physically demanding occupations and very long contribution periods. The document states verbatim: "Für die rentennahen Jahrgänge braucht es deshalb langen Vertrauensschutz und eine Härtefallregelung, die körperlich belastende Berufe und sehr lange Beitragszeiten anerkennt." This is intended to prevent workers who spent many years laboring under the special conditions of the GDR economy and the transformation process from being disproportionately burdened by the reform.

On the subject of taxes, the three Minister-Presidents demand a consistently family-friendly orientation of tax law. The paper specifically names relief for families with three or more children. The range extends from child tax allowances to the complete exemption of one parent from income tax, as the letter states: "bis hin zur Freistellung eines Elternteils von der Einkommensteuer." In doing so, the state leaders are picking up on demands that have been raised repeatedly in recent months within the CDU's family policy discourse.

Family-Friendly Tax Law up to Tax Exemption

The initiative bears the hallmarks of a regional alliance: Three Eastern German states jointly present positions viable for Berlin, without breaking the consensus also signed off on by CDU-governed Mecklenburg-Western Pomerania under Minister-President Manuela Schwesig. Even though the paper is addressed to Merz and Frei, observers also see in it a positioning vis-à-vis their own state parties, which expect clear East German accents in medium-term pension and family policy.

Regional Alliance of the Three States

In substantive terms, the demands largely fall within the corridor of what the black-red coalition in Berlin has already announced. The federal government had promised a pension reform in view of the declining pension level and demographic change, while emphasizing that intergenerational equity must be preserved. The East German Minister-Presidents therefore explicitly understand their initiative not as a confrontation, but as a supplement to the Berlin course.

It remains unclear in what format the demands will be considered in further deliberations. Possible options include incorporation into the federal government's pension dialogue as well as discussion at the next Conference of Minister-Presidents. From the Federal Chancellery, it was merely said that the paper was being taken "zur Kenntnis" and would be included in the ongoing consultations. No concrete commitments were made initially.

Reactions from Berlin and from Associations

Thorsten Frei, who also received the paper, was reserved in his remarks on the sidelines of a meeting of the Federal Cabinet. He pointed to the ongoing discussion process within the government and to the responsibility of the Federal Ministry of Labor for the reform of statutory pensions. From the ranks of the SPD parliamentary group, however, there was cautious criticism: While the demands were understandable, they must not lead to a softening of the principle of intergenerational equity.

Family associations and social organizations reacted positively to the initiative. The German Family Association (Deutscher Familienverband) particularly welcomed the proposal to provide tangible tax relief for families with three or more children. The social association VdK Germany also signaled fundamental agreement with the pension demands, pointing out that many workers in Eastern Germany had above-average long contribution periods without reaching a correspondingly high pension level.

In the East German state associations of the CDU, the joint paper was meanwhile received as a signal of unity. Saxony-Anhalt's Minister-President Sven Schulze emphasized that the three states were pulling "an einem Strang" and representing the interests of Eastern German citizens "mit einer Stimme" in Berlin. Michael Kretschmer spoke of an "wichtigen Schulterschluss" among the Central German states.

Mario Voigt stressed that the proposals were relevant not only for Eastern Germany but for all of Germany. After all, physically demanding occupations and families with many children who would benefit from a reform also existed in western German regions. Looking ahead to further deliberations, all three Minister-Presidents announced that they intended to hold direct talks with the Federal Chancellor in the coming weeks.