Criticism of the new federal government: mother's pension causes confusion!

Criticism of the new federal government: mother's pension causes confusion!

In the first 100 days of the black-red federal government, a survey by the ifo panel of economists shows that 42% of the economics professors surveyed rated the previous work negatively. Only 25% expressed themselves positively. The issues of mother's pension and the lack of an increase in the retirement age are particularly criticized. However, there are also positive aspects, such as the planned public investments, tax depreciation improvements and additional defense spending.

Another topic that is receiving a lot of attention is the mother's pension III, which is scheduled to be introduced on January 1, 2027. However, the German Pension Insurance (DRV) warns of serious technical implementation problems and considers an introduction before 2028 to be hardly feasible. The mother's pension III is intended to take into account parenting times for children born before 1992, which could bring many pensioners a monthly increase of around 20 euros. However, this adjustment could be credited towards social benefits for those in need.

Criticism of the implementation plans

The DRV estimates that the annual costs for the mother's pension III will be around five billion euros. This sum almost corresponds to the planned savings of 5.4 billion euros from a planned reduction in electricity tax. CSU politician Klaus Holetschek expresses serious doubts about the feasibility of mother's pension III and criticizes the DRV for its lack of preparation.

In order to implement the mother's pension III, the DRV would have to check around 26 million pensions and make adjustments to over ten million pensions. Anja Piel, the head of the DRV, emphasizes the need for extensive IT adjustments and quality assurance work. Even with an error rate of just ten percent, around a million accounts would have to be checked manually. Such an effort could have a lasting impact on companies' and consumers' trust in the government, especially since the Ifo Institute predicts a decline in gross domestic product (GDP) of 0.1 percentage points next year.

Market developments in the real estate sector

There are also critical voices on the subject of housing construction. The German Real Estate Association (IVD) is dissatisfied with the measures taken by the government under Chancellor Friedrich Merz and Construction Minister Verena Hubertz. The IVD urgently calls for reliable funding programs as well as a technology-open heating policy and the rapid implementation of construction projects by municipalities. It is reported that in 399 of 400 regions in Germany, new apartments in the mid-price segment are more expensive than existing apartments, with the only difference being in North Frisia.

Particularly high surcharges for new apartments can be found in Dessau-Roßlau, where the difference is over 403,000 euros. In this region, the price premium in the luxury segment is on average lower, with peak values ​​of up to 635,896 euros in the Miesbach district. However, in many regions of Germany the surcharge is less than 1,500 euros per square meter, which points to another area of ​​tension in the German real estate market.

Finally, it should be mentioned that Württembergische Lebensversicherung recommends students and trainees to take out occupational disability insurance early on in order to protect themselves against financial losses. These recommendations and the latest developments in pension policy and the real estate market illustrate the challenges facing the federal government.