Chancellor Friedrich Merz has reaffirmed his commitment to a controversial pension reform, dismissing internal calls to retain incentives for early retirement as the September elections loom.

German Chancellor Friedrich Merz is pressing forward with his proposed pension reform despite dissent from within his own party. At the recent government retreat in Neuhardenberg, Merz rejected demands from three regional CDU prime ministers to preserve the option of penalty-free early retirement after 45 contribution years. He emphasized that eliminating early retirement incentives remains a key element of the reform plan, signaling a firm stance against compromise.

While tensions around the pension debate dominate headlines, the coalition has temporarily set aside other contentious issues. A proposal from the SPD to enshrine climate protection in the constitution did not resurface during the retreat. Instead, the black-red coalition discussed improving coordination on existing climate measures and providing targeted financial aid. Merz expressed optimism about Germany’s path forward, urging unity and positivity despite political challenges.

However, the coalition faces mounting pressure as regional elections approach in September, with polling suggesting potential losses for both CDU and SPD. In Brandenburg, Saxony, and Thuringia, far-right party AfD is gaining traction, raising concerns over its growing influence. Despite the looming challenges, government officials projected unity during the retreat, with lighthearted moments underscoring the effort to maintain cohesion. Finance Minister Lars Klingbeil called for solidarity, adding that the government’s ability to implement reforms would be critical for navigating the turbulent weeks ahead.