Politics · Germany · 1 hr ago
Germany’s coalition faces disputes over pensions, care, taxes and budget
Germany’s governing coalition is made up of the conservative Union and the Social Democratic Party, or SPD.
Bärbel Bas has left the Labour Ministry, and former Rhineland-Palatinate premier Alexander Schweitzer is expected to take over.
The ministry is responsible for pension reform, one of the coalition’s biggest unresolved issues.
The parties disagree on parts of the plan, including early retirement after 45 years of contributions, and the reform proposal has yet to be completed.
They also differ over changes to working-time rules and how to fund a care system facing rising costs.
Proposed tax increases, including a tax on sugary drinks, have drawn opposition from Union politicians and could affect plans for the 2027 federal budget.
A government commission on care reform may be approved by the cabinet, and is due to make recommendations by the end of January.
Germany’s governing coalition of the CDU/CSU and SPD faces disputes over pensions, care, taxes and the 2027 budget.
Alexander Schweitzer is expected to take over the labour ministry after Bärbel Bas resigned.
The coalition has not settled what to include in its planned pension reform, and not all 33 recommendations from the pension commission will be implemented.
The SPD and the Union also differ over care costs and proposed taxes on sugary drinks.
- Who
- Germany’s governing coalition of the CDU/CSU and SPD, including Labour Minister-designate Alexander Schweitzer and Finance Minister Lars Klingbeil.
- What
- The coalition faces disputes over pension reform, care, taxes and the federal budget.
- When
- The article was published on 13 October 2026; Schweitzer was expected to be appointed that afternoon.
- Where
- Germany.
- Why
- The coalition has unresolved disagreements over reform proposals and how to fund planned spending.
SPD
CDU/CSU (Union)
Care costs
SPD
The SPD wants limits on rising out-of-pocket care costs to be considered by the reform commission.
CDU/CSU (Union)
Union representatives have made opposing statements about including limits.
Sugary-drink tax
SPD
Finance Minister Lars Klingbeil has proposed higher taxes on sugary drinks.
CDU/CSU (Union)
Union agriculture and consumer-protection ministers oppose the plan, saying it is state intervention that burdens farmers and raises prices.
Schweitzer defended the penalty-free early pension available after 45 contribution years.
The Chancellery temporarily stopped plans for a sugary-drink tax.
The cabinet was expected to appoint a care-reform commission, but discussions over its membership and remit remained.
Schweitzer was expected to be appointed labour minister that afternoon.
- Pension commission
- 33 recommendations; not all will be implemented
- Care commission
- Proposals due by the end of January
- Early pension
- Available without deductions after 45 contribution years
- Federal budget
- Draft budget for 2027
- Schweitzer appointment
- Expected on 13 October 2026
What people are saying
He wants to really get started, he wants to get things under way, and there will be no major delays
Sources
Related news
Bärbel Bas quits German labour minister and SPD co-leader roles
Employers call for 12-month cap on German unemployment benefits
Bärbel Bas’s resignation shakes Germany’s governing coalition
Germany’s Left party seeks law to identify vacant homes using electricity data
BMW withdraws car lease offer for new parliament president in Saxony-Anhalt
Alexander Schweitzer to replace Bärbel Bas as Germany’s labour minister
Heino receives €7,500 settlement over AfD election campaign use
Bärbel Bas resigns as German labor minister and SPD co-chair
Lauterbach criticizes CDU over treatment of Bärbel Bas
Alexander Schweitzer recalls entering Rhineland-Palatinate parliament in 2006
Klingbeil says pension reform remains on schedule after Bas resigns
