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    Home EUROPE Germany

    Germany blog: SPD threatens “fierce resistance” to pension cuts

    The Analyst by The Analyst
    April 21, 2026
    in Germany
    Germany blog: SPD threatens “fierce resistance” to pension cuts


    Merz’s head of the Chancellery is at the top against higher taxes

    The head of the Chancellery, Thorsten Frei, has spoken out against tax increases for top earners in order to counter-finance relief for employees with low and medium salaries. That is not the premise of the Union, said the CDU politician in an interview with the “Augsburger Allgemeine” and the “Südkurier”. “I don’t think we primarily have a revenue problem,” Frei added.

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    This threatens to create a new dispute in the government camp over the right course of reform policy. However, Chancellor Friedrich Merz’s confidant left the door ajar to reach an agreement with his coalition partner, the SPD. “It would also not be wise to open negotiations and discussions by explaining everything that is not possible.”

    The leaders of the Union and SPD recently agreed during their consultations to revise the income tax this year in order to provide the working middle class with financial benefits. The Social Democrats want to make greater use of very high incomes.

    In the interview, the Chancellery Minister also spoke out in favor of linking working life to higher life expectancy. “If that increases, then there will have to be a certain amount of overtime,” said Frei. “In my opinion, there is no way around it.” A commission set up by the government alliance is currently drawing up proposals for pension reform, which it is expected to present in the summer.



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