The far-right party Alternative for Germany (AfD) has proposed capital-funded savings plans open only to German citizens holding a long-term residence permit.
AfD’s members of parliament (MPs) have put forward a motion calling on the government to draft a bill to set up a retirement provision fund savings plan (Altersvorsorge-Fondssparplan) and a corresponding junior savings account (Junior-Spardepot) for newborn children “with German citizenship and actual permanent residence in Germany”.
The savings plans, considered as a supplement to the pay-as-you-go pensions, are funded with taxpayers’ money, with monthly payments of €100, until children turn 18, according to the motion.
The pension plans could cost taxpayers €752m per year, according to the motion, a forecast based on the number of children born in 2022 with German citizenship.
Moreover, to be eligible for the plans, which are akin to ETF saving plans, children must reside in Germany until reaching the age of 18, it added.
Holders of junior savings accounts will be able to switch to alternative funds to continue to save for old age through tax-deductible personal contributions after reaching 18 years old, it added.
Children born in Germany are not automatically German citizens unless one of the parents has been legally living in Germany for more than five years, with unlimited residency status, a reform of the citizenship law recently approved by Parliament (Bundestag).
The bid put forward by the far-right party resembles aspects of the generational capital (Generationenkapital) model put forward by the government and currently examined by Parliament.
According to the AfD’s proposal, a foundation (Gemeinschaftsstiftung) would manage the assets to fund the saving plans, but channelling taxpayers’ money instead of taking credit like in the reform of the first pillar proposed by the governing coalition.
The investment policy of the fund savings plans would look like that of the Swedish AP7 fund, investing heavily in equity, and without ESG restrictions imposed on fund managers, according to the motion.
AfD rejects climate-protection policies at European Union and national level, and the idea of man-made climate change, saying that “in reality there is neither an increase in extreme weather events nor an accelerated rise in sea levels”, according to the party’s manifesto laid out for the European elections held in June.
The party has established itself over the years as an anti-migration party defending Germany’s national identity, and it is set to record wins in state elections in Saxony, Thuringia and Brandenburg in September, and in the general elections next year.
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