Five eastern German state premiers threaten to block federal pension reform, opposing end to early retirement at 63

The revolt

Three CDU state premiers from eastern Germany (Michael Kretschmer of Saxony, Sven Schulze of Saxony-Anhalt, and Mario Voigt of Thuringia) presented a joint position paper on Thursday rejecting a key recommendation of the government's pension commission. They demand the preservation of the deduction-free early pension after 45 insurance years, a measure colloquially called "Rente mit 63," though the early exit is now only possible from 64.5 years onward. Two SPD eastern premiers (Dietmar Woidke of Brandenburg and Manuela Schwesig of Mecklenburg-Vorpommern) have also opposed the abolition.

Ohne Veränderungen werden wir bei der Renten- und der Pflegereform im Bundesrat nicht zustimmen können. Und wenn andere Länder auch nicht zustimmen, dann gibt es diese Renten- und Pflegereform nicht.

Why the east is digging in

Eastern Germany's pension landscape differs sharply from the west. According to the federal government's old-age security report, three-quarters of easterners rely solely on the statutory pension, with no occupational or private top-up. In the west, fewer than half of pensioners are in that position. Only one-fifth of eastern pensioners receive a company pension, which averages 255 euros per month, less than half the western payout. Kretschmer pointed to average pensions in Saxony of 1,300 to 1,500 euros against care-home costs exceeding 3,000 euros a month. He argued eastern employment biographies, shaped by the post-reunification industrial transformation, deserve "respect and consideration."

In Sachsen liegen die Durchschnittsrenten bei 1.300 bis 1.500 Euro. Der Eigenanteil für einen Pflegeplatz liegt bei mehr als 3000 Euro. Hier kämpfen wir für die Menschen im Osten, die eben andere Erwerbsbiografien haben.

Electoral backdrop

The revolt lands five weeks before Saxony-Anhalt's state election on 6 September, where Schulze's CDU trails the AfD by 17 percentage points. In Mecklenburg-Vorpommern, whose election follows on 20 September, Schwesig's SPD has been running 7 to 9 points behind the AfD for months, though the gap has narrowed slightly. Both leaders are fighting for their political survival, and defending early retirement plays well with eastern Germany's older electorate. Commentators in Der Tagesspiegel dismissed the move as a transparent campaign manoeuvre, noting the Bundesrat cannot block the law, only delay it via the mediation committee, because abolition of the early pension is an objection law that the Bundestag can override.

The reform package at stake

In late June, the pension commission delivered 33 recommendations. Chancellor Friedrich Merz and Labour Minister Bärbel Bas called the package a "Gesamtkunstwerk" that only works as a whole. Scrapping the deduction-free early pension is its financial linchpin; without it, the centrepiece, a new capital-funded pension pillar, cannot be financed, according to Frankfurter Allgemeine. If the early pension survives, social contributions, already projected to reach 46 to 47 percent of gross pay, would rise by at least another percentage point.

Die Alterssicherungskommission hat für ihre Empfehlungen schwierige Kompromisse ausgehandelt, um die jetzt einsetzende Phase akuter demografischer Alterung zu bewältigen und die Altersversorgung mittel- bis langfristig wieder deutlich zu verbessern.

Bundesrat arithmetic and reactions

The five eastern states together hold only 19 of the Bundesrat's 69 seats, well short of the 35 needed for a majority. CDU parliamentary deputy Sepp Müller, who represents a constituency in Saxony-Anhalt, insisted the principle of abolishing the early pension must stand, calling the commission's proposals a "very balanced overall package" with higher basic-pension allowances that benefit eastern retirees. BSW founder Sahra Wagenknecht backed the premiers but questioned the timing, calling their stance "completely unbelievable five weeks before the election." FDP chief Wolfgang Kubicki criticised the government's unwillingness even to discuss the commission's proposals, labelling it "unparliamentary." Brandenburg CDU deputy leader Frank Bommert endorsed the eastern premiers, demanding the pension be tied more closely to "life's work."