German Chancellor Angela Merkel's conservatives and the center-left Social ...
BERLIN - German Chancellor Angela Merkel’s conservatives and the center-left Social Democrats on Sunday broke a deadlock over a higher basic pension for low-income workers, an impasse which had threatened the future of their governing coalition.
The package also includes lower contributions to the public unemployment insurance scheme and the creation of an investment fund to support local high-tech start-ups. The conservatives had agreed to an SPD proposal to introduce a higher basic pension for low-income workers who had been employed for at least 35 years. But some details were left open and talks on finalizing terms had stalled for months.
Dreyer estimated that up to 1.5 million people would benefit from the deal through increased pension entitlements. The planned investment fund will be worth up to 10 billion euros to support cutting-edge technologies in areas such as digitization and climate protection, Kramp-Karrenbauer added. It will be run by the state-owned KfW bank.
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