The SPD has control of nine out of twelve government departments, with the Green Alternative Party taking the departments of environment, further education and urban development. Turmoil over increase in pensions contributions Federal Chancellor Helmut Kohl intends to prevent an increase of the pension contribution rate to 21 percent from 1998. Kohl said at the Deutsche Bank's SME conference in Frankfurt that such an increase would not be acceptable, and must be changed sensibly. Concrete measures were not mentioned. He said there must be an honest discussion of which elements of the existing pension system can be maintained and which must be changed.
Young people are justifiably worried about pensions, in view of the changing age pyramid.
Labour Minister Norbert Bluem has called the FDP, SPD and employers to joint talks, saying that everyone has to pull together, and in the current legislative period. Bluem accused the employers of going back on an agreement to create more jobs. President of the Employers Federation Dieter Hundt attacked the Employment Minister in return, claiming that short-falls in pensions insurance must have been foreseeable. In any case the announced increase would have to be back-dated. Industry could not withstand such a measure, and more jobs would be lost.