The federal government’s pension package can be decided in the cabinet on Wednesday. The Ministry of Finance, which had blocked the draft in the struggle for the federal budget, approved the project on Friday, according to information from government circles from the German Press Agency.

“After the internal government discussions over the last few weeks and the Chancellor’s public commitment to the financial plan, the concerns have initially been dispelled,” it said. However, even after a decision, there is still a need for further pension reform. Further steps towards stabilization would have to follow.

With the pension package, Labor Minister Hubertus Heil (SPD) and Finance Minister Christian Lindner (FDP) want to stabilize the pension level and slow down the expected increase in pension contributions through an investment on the capital market.

The traffic light government originally wanted to launch the reform on May 8th. But the Ministry of Finance blocked adoption in the cabinet because, independently of this, several ministries had submitted high spending requests for the 2025 federal budget. Lindner had insisted on strict austerity measures.