The German coalition about pensions is divided
German Labor Minister Hubertus Heil made progress in his plan to raise minimum contributory pensions but does not have the support of conservatives
The plan to raise minimum contributory pensions at up to 447 euros per month would benefit between three and four million workers with salaries close to the minimum wage and would be financed through taxes.
Hubertus Heil, the German labor minister, said: “Many people who have worked all their lives end up at risk of poverty due to low wages. I want to change that.” According to a survey published last month, 56% of Germans fear poverty after retirement.
The initiative of the German authority fits within what was agreed in the government agreement signed at the beginning of this term by the conservative bloc of Chancellor Angela Merkel and the Social Democratic Party (SPD).
However, the conservatives already showed their disagreement with the proposal that they believe does not adapt to what was previously agreed. It should be remembered that conservatives and social democrats decided at the beginning of 2018 that the minimum contributory income for pensions and for dependent care should be at least 10% above the poverty line.
L.Sáenz
Source: Inversión&Finanzas.com
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