Government manages to approve maternity pension and gastrointestinal tax, despite facing a budget shortage
The Christian Social Union (CSU) in Germany has made a notable decision to increase pensions for older mothers, despite a projected budget deficit. This move, it seems, is driven primarily by political considerations, aiming to secure electoral support from economically insecure mothers.
Studies indicate that promises to boost welfare benefits, such as expanded pensions for mothers, particularly resonate with low-income, single, or multi-child mothers earning below €850/month. This tangible hope of improved financial security in old age can induce a 20–30 percentage point swing in their voting support for the CSU's coalition partner, the Christian Democrats [1].
The coalition agreement also contains promises targeting the hospitality industry and mothers' pensions. The agreement includes plans to expand welfare benefits to older mothers to address systemic issues in the pension system that leave many older women with low income due to interrupted work histories from caregiving responsibilities [3][4].
Though exact details of hospitality sector promises are not fully outlined in the available sources, the broader coalition framework prioritises social security improvements alongside economic sector supports. This suggests commitments to balance social welfare with industry revitalisation, possibly through targeted investments or relief measures.
It's worth noting that the reduction in Value-Added Tax (VAT) for the hospitality industry is a separate policy decision from the mothers' pension. This reduction, a promise kept by the current coalition, is not specified to apply to any particular segment within the industry. CSU politician Huber has confirmed that the VAT for the hospitality industry will be reduced from 19% to 7% [5][6].
This significant change for the hospitality industry in Germany, announced by Huber alongside the mothers' pension, is not related to the mothers' pension in any direct way. The reduction in VAT for the hospitality industry is part of the coalition agreement in Germany [7].
In summary, the rationale behind increasing pensions for older mothers, despite fiscal constraints, is strategic political targeting of vulnerable voter groups to boost electoral support, combined with genuine social policy aims to reduce poverty among older women and support families. Other coalition promises include enhancing social security for mothers and measures affecting the hospitality industry, although specifics on the latter require further detail beyond the current search results [1][3][4].
The increases in pensions for older mothers, as part of the coalition agreement, are not only motivated by political strategies to gain electoral support but also represent a genuine social policy aim to alleviate poverty among older women. This policy move is intertwined with other commitments, such as enhancement of social security for mothers and measures concerning the hospitality industry.
The reduction in Value-Added Tax (VAT) for the hospitality industry, a separate policy decision, is an attempt to balance social welfare with industry revitalization, potentially through targeted investments or relief measures, rather than being directly related to the mothers' pension increases.
