Intergenerational Fairness Wins and Losses in 2024 – Germany

It was Intergenerational Fairness Day 2024 on 16 November! It was the second annual international day of action where the FRFG and other organisations called on governments around the world to better protect the rights and interests of younger and future generations. As part of our campaign for this year's Intergenerational Fairness Day, we have compiled this report on the domestic wins and losses in Germany in 2024. Together with other reports from Australia, Canada, and the UK, this report will be presented in this year's International Blog Week, hosted by the Intergenerational Foundation. 

On 6 November 2024, the German Chancellor Olaf Scholz sacked his finance minister, Christian Lindner, forcing him to schedule a confidence vote for January 2025 which could trigger a new federal election. The sacking effectively led to the dissolution of the ruling three-party coalition comprised of Scholz’s social democrats (SPD), Lindner’s free democrats (FDP) and the Green Party, which came into power after the last German federal election in 2021.

As the German political system lies in shambles and the future of past policy proposals remains uncertain, FRFG looks back at 2024 so far, as Germany grappled with complex policy challenges related to achieving intergenerational fairness. This included tackling issues like climate commitments, pension reforms, youth political engagement, and further delays in the search for a radioactive waste repository. These areas reveal both promising steps forward and significant obstacles, especially in ensuring fair treatment for younger generations. Here’s a breakdown of the wins and losses this year so far.

Climate Policy

Germany’s Climate Change Act of 2019 remains a benchmark for intergenerational equity in policy. With targets set to reduce emissions by 65% by 2030 and reach climate neutrality by 2045, the Act represents a concrete commitment to the long-term protection of younger generations from climate-induced risks. This legally binding framework was further reinforced by a 2021 court ruling, affirming the duty of the state to protect future generations’ freedoms. However, on 26 April 2024, the new Climate Protection Act was passed in the Bundestag. It includes significant changes, including in the way that greenhouse gas emissions are measured, now measuring emissions across the whole nation rather than across sectors. It is therefore no longer necessary for the building or transport sectors to achieve their targets. The FRFG sees this retreat from the sector-specific target as the federal government caving into the interests of such sectors. This is a complete gutting of the Climate Protection Act and a step backwards for climate protection.

Thus, three years after the historic 2021 ruling by the Federal Constitutional Court (FCC), it seems as if both the rights and obligations established to protect against climate change have been pushed into the background.

The complainants of the climate resolution at the time – Neubauer, Backsen and others – have joined forces with Greenpeace, Germanwatch and others on 26 June 2024 to once again demand their right to climate protection – and to do so, again, before the FCC.

Verdict: Loss 

Social Security Systems: A Contentious Issue for Younger Generations

The debate on pension reform in Germany gained renewed intensity in 2024, with the proposed introduction of Pension Package II (“Rentenpaket II”) sparking concerns about long-term generational impacts. The proposed reform would eliminate the ‘sustainability factor’ within the statutory pension system (SPS) – a mechanism meant to fairly distribute the costs of demographic change between working contributors and retirees. Abandoning this factor would effectively accelerate financial burdens on younger generations as they shoulder an expanding ageing population’s pension cost (Bauer, Chaplin, Horbach, 2024). According to the Stiftung Marktwirtschaft, young contributors are projected to face even higher contributions, potentially exceeding 50% of their income by their 40s by the current trajectory. This trajectory would only be sharpened by the Pension Package II. The FRFG has criticised the package, calling for structural reforms to ensure fairness for young and future workers. Given the collapse of the German government, it seems like this controversial amendment to the pension system may never be implemented. Nevertheless, it is important to address the implications of such a proposal and the remaining shortcomings of the social security systems, which pertain to both pensions and care. The FRFG argues that current decisions risk creating a “gerontocracy” in which older generations’ interests override younger ones in pension policy – a phenomenon fuelled by the shifting interests of the ageing voter base.

Despite a reported slight improvement in Germany’s sustainability gap – largely due to inflation-driven revenue increases—the government’s total debt, including implicit debt, still hovers at 374.6% of GDP. Without the sustainability factor, implicit liabilities within the SPS are likely to increase, signalling mounting costs for future generations. The FRFG advocates, as a first step towards more fundamental reform, for MPs to be included in the public pension scheme to encourage policymakers’ accountability.

The FRFG’s position is that reforms should reflect not only immediate voter demands but also a long-term, sustainable vision that shares the demographic costs more evenly across age groups. Solutions like universal employment insurance and gradual inclusion of all workers, including MPs and eventually civil servants, into the public pension system, could serve as a model for equitable distribution. As the FRFG’s ongoing advocacy highlights, today’s decisions around the pension system will define the financial landscape for generations to come.

Verdict: Loss 

Search for a Nuclear Waste Repository

One of the pressing intergenerational issues in 2024 is Germany’s delayed search for a repository for its highly radioactive waste. Initially intended for completion by 2031, the repository selection process is now projected to stretch to 2074, raising significant concerns about the safety and security of interim storage facilities. The FRFG has expressed strong criticism of this delay, emphasising the dangers posed by continued above-ground storage, especially in times of increased security threats.

FRFG’s Managing Director, Jörg Tremmel, has argued that leaving radioactive waste in interim storage facilities is “absolutely irresponsible”, citing that the current conditions provide inadequate protection against environmental hazards or potential attacks. The FRFG has called for a revision of the Site Selection Act to accelerate the search process and secure a safe, permanent solution for Germany’s nuclear waste. Pointing to successful examples from countries like Switzerland, the FRFG advocates for a more targeted approach, with faster in-depth investigations into potential sites, prioritising safety and stability for future generations.

Verdict: Loss 

Youth Engagement and Voting Rights

Germany has also seen promising progress in expanding youth engagement, with ongoing debates about lowering the voting age to 16 for the European Parliament and possibly Bundestag elections. As the FRFG has argued, allowing younger citizens to participate in the democratic process acknowledges the need for younger perspectives in decisions that directly affect their future, including climate and economic policies. The potential for lowering the voting age aligns Germany with other EU countries that have made similar changes, reinforcing the principle of intergenerational equity in governance.

Verdict: Win 

In 2024, Germany has made some progress in some areas of intergenerational fairness, but significant challenges remain. Overall, given the current uncertainty around the future of the German government, it will remain to be seen how this will affect policy proposals and reforms in the pipeline and what a potential new government might prioritise instead.

The FRFG will continue to campaign for the need for balanced reforms that address these issues with a long-term perspective, ensuring that Germany’s policy legacy supports – rather than undermines – future generations.