German parliament approves pension package after a rebellion in Merz’s party

Germany’s parliament has approved a pension reform package that had prompted a rebellion in the ranks of Chancellor Friedrich Merz’s party, the latest instalment in a bumpy first seven months in office

BERLIN — Germany’s parliament on Friday approved a pension reform package that had prompted a rebellion in the ranks of Chancellor Friedrich Merz’s party, the latest instalment of a bumpy first seven months in office.

Lawmakers in the lower house voted 319-225 in favor of the package, including a measure that would hold the level of state pensions at 48% of average wages until 2031. There were 53 abstentions.

A group of 18 young lawmakers in Merz’s center-right Union bloc — a larger number than his coalition’s parliamentary majority — had balked for weeks at a provision that said after 2031, the pension level would be slightly higher than under current law. They argued that that would cost up to 15 billion euros ($17.5 billion) per year, and that this would come at the expense of young people.

Merz’s junior coalition partners, the center-left Social Democrats, were adamant that the package be approved unchanged. Merz backed that.

The measure to maintain the value of pensions was part of a package which also contains changes sought by Merz’s conservative bloc, including a tax break that would make it easier for retiree