The Christian Social Union (CSU), Chancellor Frederick Merz’s Conservative Christian Democratic Union (CDU), the Bavarian Sister-party, seems to have persuaded his elder siblings to implement the same pet projects: Pension subsidy is known as parents. Mothers pension, Or “mother’s pension” – a year before the scheme.
Pension growth for children before 1992 comes with a price tag of about € 5 billion of about € 5 billion and now to be implemented on January 1, 2027 despite a major cut somewhere else in Germany’s federal federal budget.
According to German media reports, the government still has a difference of some € 172 billion ($ 198 billion) for its financial plan from 2027 to 2029.
The employed growth in 2027 is the third of the three stages and adds an additional half a percentage points to the pension – which works at about 20 € 20 per child per month for children earlier. Previously, parents whose children were born after 1992 received a slightly higher percentage.
CSU general secretary Martin Hubber called the “perfection” of the mother’s pension scheme to the move, and said that 10 million women are old benefits. “For many women pensioners, there is a big difference from this growth,” he said that Round News Network.
Who benefits the mother’s pension?
Although the change will exclude an inequality between the older and young generations renovated by the older generations, experts say that this remedy does nothing to stop gender salary differences under men and women, or in fact there is a holistic inequality in the country. Despite the name, all parents are eligible for “mother’s pension”, as spinach parents and grandparents are, if the child lived with them for a significant time.
Peter Han, a specialist of the State Finance Policy at the German Institute for Economic Research (DIW), and a study co-covers on pension, think that this is an effective way to shut down the “gender pension gap”.
The main question, as far as Han is concerned, which really benefits. It admits, he admitted, it makes a superficial understanding to the Olders mother that he was his child after 1992. “But the pension for that generation was quite high for the younger generation,” Han told DW. “And secondly, it is a ‘watering can’ that is the same for all mothers, and therefore nobody does to combat poverty especially among older people.”
A child per month per month can certainly be useful for people with low income, but very poor women will not benefit anyway – because “mother’s pension” is actually cut in some way.
Helping families – Specific Bavarian
The mother’s pension is in 2013, when CSU pushed the parents as a way to compensate through the scheme under Angela Merkel’s government – mainly mother – who go away for a long time to raise children and therefore pay less in pension system.
Since then, CSU has made the plan one of its major policies, not at least because it is popular among the own Bavarian voters – many of which are large people. In the intervening years, maintaining mother’s pension is CSU’s line in sand in a conversation with its coalition partner CDU and Center-Life Social Democratic Party (SPD).
“Support on this issue would be unimaginable for a CSU leader,” DW said, “political scientist Ursula Munach, Director of Tutting Academy for political education in Bavaria. “If the other parties do not complete it, it will refuse to support their proposals while playing on the opinion of the public in an aging society.”
Help the old at the cost of youth
But this idea is therefore unpopular among the trade community of Germany, who are expecting a bee that the conservative government of Merz should do more people to keep more people on the job market rather than increasing pension. “All this is being completed in the wrong direction,” said the Federal Association of Wholesale, Judith Roader of Foreign Trade and Services (BGA). “Everything that leads to welfare expenses, is a problem, and whoever indicates less employer in an aging society is very bad. And mother’s pension belongs to both of them.”
,[Raising the mother’s pension] Another indication is that more and more tax money or social insurance money is being distributed to older generations at the cost of active workers, “Roder told DW.” It has to be financed somehow, and it is just a big lol to pay in the future. He said, “This money will invest in infrastructure, which benefits both businesses and society on a large scale rather than a particular group.
The rodor argued that the elder parents are already financedly privileged, as they benefit from pension concepts, which were in favor of the mother in the past – for example, before 1999, women could legally start pulling an old age pension in advance than men.
According to Han, there are cheap ways to help the old poor people, discovering as income and money checks so that only the toz requires really additional money. “If you want to reduce the real gender pension difference, you have to change the laboratory market relationship between men and women by promoting more participation on the laboratory market for women,” Han said. “For example, with better childcare.”
“At a time when state pension suits are under pressure, it is difficult to search for the expansion of costs,” they concluded. “Especially for such a remedy. Certainly, you can see justification for it, but there are other measures that I think are more important.”
Edited by Reena Goldenburg
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