As of: February 29, 2024, 6:42 a.m
By: Mark Stoffers
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Split
Criticism of an economist's controversial pension proposal is coming from all sides.
Chancellor Scholz and Minister Heil also strongly condemn the move.
Berlin – Pensioners are eagerly awaiting the pension increase in the summer of 2024. But just a few weeks before the announcement, a new savings proposal for pensions is causing a stir.
The top economist Bernd Raffelhüschen is calling for a zero round of pension increases in order to relieve the pressure on the traffic light coalition's budget and the pension fund equally.
New savings proposal for pensions: “Pension increases should be suspended”
“Germany has been continually expanding its welfare state for decades,” said the Freiburg professor of finance to the
Bild
newspaper about his pension savings proposal.
“That’s why it’s not a problem to save in the social sector.
For example, a pension moratorium would make sense: the pension increase for this year should be suspended.
That would save more than ten billion euros in the pension fund within a year.”
Expert Bernd Raffelhüschen (picture) suggests that health insurance patients should pay the first 800 euros for doctor's visits themselves.
© M. Popow / IMAGO
Finance Minister Christian Lindner (FDP) made a similar statement last week and called for a three-year moratorium on social spending and a freeze on pensions.
However, the demand, which essentially would mean cuts for pensioners, was met with sharp criticism from many quarters.
Zero round on the pension increase: Chancellor Scholz clearly rejects the pension proposal
It didn't take long for a reaction from Berlin to demand a zero round of pension increases.
Among other things, Chancellor Olaf Scholz (SPD) strongly rejected the economist's savings proposal for pensions.
Government spokesman Steffen Hebestreit said on Wednesday (February 28) that the Chancellor had assessed this proposal “as evidence of the extent to which the world of a professor cannot be reconciled with the realities of 20 million pensioners.”
Zero round for pensions: “Right to pension increase” – will come for pensioners this summer
The idea is “economically absurd, it is socially wrong and socio-politically fatal,” added Hebestreit about the required zero round for pensioners.
“There is a right to pension increases, it is stipulated by law, and it will also come this summer.” Hebestreit referred to the increased prices and the current great reluctance to buy in Germany.
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The Federal Minister of Labor and Social Affairs, Hubertus Heil (SPD), who is responsible for pensions, made a similar statement.
“The pension increase will come on July 1st; pensioners in Germany are entitled to it,” explained Heil, who also draws a clear line on “pension at 69 or 70”.
“The fact that so-called experts chronically question social security does not contribute to social cohesion and of course does not guide the federal government’s actions,” the minister made clear.
It follows the positive wage development and is enshrined in law.
Cuts for pensioners: SPD denies demand for a zero rate for pension increases
The German Federation of Trade Unions (DGB) accused the professor of damaging trust in the German welfare state.
“Starting such debates is an attack on democracy and social cohesion because they unnecessarily destroy trust in functioning systems,” criticized DGB board member Anja Piel.
“A zero round of pensions means leaving millions of people out in the cold: namely pensioners who, like everyone else, are affected by the persistently high prices.”
Another representative of the SPD also sharply criticized the call for a zero round of pensions.
“There will be no pension cuts with us, it is also a question of respect for the lifetime achievements of everyone who has worked hard for many years,” said SPD parliamentary group vice-president Dagmar Schmidt to the newspapers of the
Funke media group
(Thursday editions).
But this is exactly what the zero round previously proposed by pension expert Bernd Raffelhüschen would mean.
“Required zero round for pensioners a pension cut”
In uncertain times like these, people need social security.
The welfare state is the guarantee for this, emphasized Schmidt.
“De facto, the zero round for pensioners demanded by Professor Raffelhüschen, who, among other things, works as a lobbyist for the
New Social Market Economy
Initiative , would mean a pension cut,” added the SPD politician.
She referred to the loss of purchasing power due to inflation.
Schmidt reiterated that the SPD wanted to secure the pension level of at least 48 percent in the long term.
Pensions would have to continue to rise with wages so that pensioners could participate in economic development.
“The annual pension adjustment is not a handout, but a firmly established social right that cannot be changed,” the Bundestag parliamentary group deputy made clear.
Pension increase in summer 2024: Heil is optimistic for July – “Pension higher than inflation”
Pensioners will find out in March how high the pension increase will be this year.
The announcement, like the rising health insurance contributions, is one of the important changes for pensioners in the coming month.
Labor Minister Heil had already made an initial optimistic forecast for pension increases in 2024 and appeared in the newspapers of the Funke media group, “confident that pensions will rise faster than inflation again on July 1st”.
According to initial estimates, the federal government is assuming a pension increase of around 3.5 percent in July.
Exactly how high the increase will be will be determined in the spring based on the exact data that will then be determined.