The coalition in Berlin has not answered the basic question of what the pay-as-you-go pension system should do in the future.
The coalition praises the basic pension as a "social policy milestone". The truth is that the basic pension will neither strengthen the trust in the generation contract, nor is it suitable as a concept against old-age poverty.
DThe decisions of the party leaders of the Union and SPD under the heading "Grundrente" symbolize the political style of the once-grand coalition, the political style of the era Merkel: After a tough to heated confrontation, a finely chiselled piece of work is produced that is manufactured according to all the rules of compromise art – with a surface that honors almost every conceivable critique with ornamental flourishes. And that simply tires many observers. So, according to experience, the piece is delivered across the parliamentary hurdles. In the end, the coalition parties can celebrate having implemented a "promise" – although the SPD often complains about celebrating.
Unfortunately, the problem with this policy of categorization is that it does not follow a recognizable plan and does not provide convincing reasons why government work should actually be continued – except that not all interest groups feel served. All this can be clearly seen in the pension policy begun by the Union and the SPD in 2013: It was known that the German old-age security system would groan under the growing demographic burdens of the coming decade. The fact that the two pillars of supplementary pension – company and Riester pensions – do not meet the required payloads, as well. And that all of this leads to the question of how to make pension provision for the period after 2025 reliable and poverty-proof.