Tuesday’s top story: German Chancellor and Labour Minister to receive pension reform recommendations On Tuesday morning Federal Chancellor Friedrich Merz (CDU) and Labour Minister Bärbel Bas (SPD) are to receive 33 recommendations from the expert panel in the Pensions Commission and comment on them. From then headlines and harsh reactions can be expected. Government leadership is already cautioning against criticising individual proposals early on. A few days ago, Chancellor Merz expressed confidence that the government would get good proposals. “We want to reform our country
in such a way that future generations, young generations, also have the chance to live in freedom, to live in peace and to live in prosperity,” he said. But – with preliminary headlines suggesting that Germany is looking at raising its retirement age, scrapping early retirement, and increasing the pension payments owed – the fear for many workers is that the reform threatens exactly that. Tensions run high between conservatives and Left Party’s new leader Over the weekend Germany’s Left Party (Die Linke) elected a
new leader, Luigi Pantisano. Pantisano then wasted no time in angering the conservatives, speaking in a media interview about the “fascist politics” of the CDU. In a Bild interview, he had sharply attacked the CDU and said, “Ultimately, there is no difference at all between the CDU, which makes fascist politics, the AfD or the fascists themselves.” Several Union politicians have since called for his resignation. Schleswig-Holstein’s Prime Minister Daniel Günther was the first prominent CDU leader to suggest Pantisano should withdraw. He was followed
by CSU general secretary, Martin Huber, who said, “The new Left Party chairman Luigi Pantisano must resign immediately. ” On Monday Pantisano walked back his statement, saying that it was “abbreviated” and “wrong in this form”. He apologised “especially to those in the CDU who repeatedly emphasize the need for a clear firewall to the AfD. READ ALSO: Germany’s CDU slammed for ’empowering AfD’ with plan for deportation centres This comes as members of the CDU have been debating whether or not they could work
with the Left in a state government coalition in Saxony-Anhalt where the AfD is expected to win the election. It’s expected that there might not be another working coalition option that does not include the AfD. German municipalities warn of record budget deficits Local governments in Germany have warned of persistent multi‑billion‑euro deficits in the coming years, urging the federal government to step in with urgent support. According to projections, municipalities expect annual shortfalls of around €30 billion through to 2029, highlighting what officials describe
as a worsening financial crisis. Achim Brötel, president of the German County Association, said many local authorities are already financially overstretched and warned of a “downward spiral” in which growing deficits lead to increased borrowing and rising interest costs. READ ALSO: German chancellor claims cuts are the only solution as cities run out of money The consequences are already being felt at local level. City leaders report delays to infrastructure projects such as school and road renovations, along with reduced opening hours for public facilities
including libraries, swimming pools and museums. Budget cuts are also affecting social services, including support for vulnerable groups. Local representatives accuse federal and state governments of shifting financial responsibilities onto municipalities without adequate funding. They are calling for immediate financial stabilisation and reforms to curb rising social expenditure, ahead of further talks between national and regional leaders. Bavaria waives gift tax in the billions While municipalities remain cash starved, the state of Bavaria is foregoing tax revenues in the billions. This is about the gift
tax, which is an inheritance tax. Last year, taxes amounting to almost 2.4 billion euros were waived for the transfer of large assets. This is according to a response from the Ministry of Finance to a request from the SPD. The SPD economic expert in the state parliament, von Brunn, said that normal people had to pay their taxes down to the last cent, and that the super-rich deliberately counted themselves poor in gifts so that they would be exempt from the tax. The CSU-led
Bavarian Ministry of Finance countered that it was a matter of securing jobs and preserving the corporate landscape. Young adults in Germany struggle with loneliness, study Around one in five young adults in Germany continues to experience severe loneliness, according to new research highlighting the lasting social impact of the Covid pandemic. Data from the Federal Institute for Population Research shows that 21 percent of people aged 21 to 30 report feeling very lonely, a figure that has remained largely unchanged in recent years. The
findings, based on a nationwide survey conducted in winter 2024/25, suggest loneliness is not a temporary effect but an ongoing issue. Overall, 34 percent of adults aged 21 to 54 said they feel at least somewhat lonely, with 16 percent describing their situation as severe. Loneliness is less widespread among older groups, affecting 14 percent of those aged 31 to 54. Women were also slightly more likely to report feelings of isolation than men. Researchers attribute higher rates among younger people to life transitions, uncertain
career prospects and broader social instability. Experts warn that loneliness is becoming an entrenched challenge for Generation Z, with potential long-term consequences for mental health and wellbeing. With reporting by DPA, AFP and Tom Pugh.
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