JU chief Winkel attacks Söder over pension reform and demands €20bn tax overhaul

Pension reform sparks coalition tensions

The government-appointed pension commission delivered 33 proposals on Tuesday, including the abolition of the "Rente mit 63" early retirement scheme, a mandatory capital-funded pension pillar, and the elimination of contribution-free mini-jobs. Chancellor Friedrich Merz and Labour Minister Bärbel Bas quickly endorsed full implementation. However, resistance has emerged from both coalition partners. CSU leader Markus Söder rejected the mini-job abolition, warning of economic damage, while SPD figures like Mecklenburg-Vorpommern's Manuela Schwesig criticised the end of Rente mit 63.

The commission has shown that you can achieve a big breakthrough when you work unideologically and focused on the matter.

Winkel, head of the CDU/CSU youth wing, gave a full-throated defence of the package in an interview with Stern magazine. He called the reform a "gamechanger" and urged all politicians to take responsibility rather than torpedo a reform Germany has awaited for 30 years. He also took a pointed jab at Söder, who recently shaved his beard after a mishap: "Forward-looking politics must not only shave off the beard, but also cut off old braids."

Tax reform: Winkel demands volume above €20 billion

Beyond pensions, Winkel used the Stern interview to push for an ambitious tax reform. Coalition leaders were meeting at the chancellery on Sunday to prepare a key coalition committee session on Wednesday, where decisions on labour market and tax reforms are expected. Winkel insisted that any tax package must deliver noticeable relief.

It's of little use to pass a tax reform that you barely feel in your wallet but which triggers a big political battle beforehand.

He argued the volume should be "well above 20 billion euros" and that the era of formulaic compromises is over. Winkel pointed to a concept from two young Union MPs, Yannick Bury and Florian Dorn, which combines income tax relief with a gradual reduction of subsidies. He noted that subsidies have exploded from €5 billion before the pandemic to over €50 billion now. Winkel called for cutting subsidies evenly across all sectors rather than picking winners, saying he expects this discipline from both the SPD and his own party.

Political fault lines

Winkel's broadside against Söder highlights growing unease within the Union over the Bavarian premier's stance. While Winkel pledged support for Merz's reform course, Söder's insistence on protecting mini-jobs and the CSU's costly push for expanded mothers' pensions put him at odds with the commission's blueprint. The SPD's own misgivings about ending Rente mit 63 add further uncertainty ahead of Wednesday's coalition committee.

Winkel refused to draw red lines on tax reform, stating he is "not dogmatic" and citing the pension commission as a model of cross-party pragmatism. The coming days will test whether the coalition can replicate that spirit on both pensions and taxes.