Ends the criticized “Hartz IV” in effect for two decades
The German government has today given the green light for the long-awaited social reform, the flagship project in this area in the Tripartite Program of Social Democrats (SPD), Greens and Liberals (FDP). The Council of Ministers, on behalf of Chancellor Olaf Scholz, has approved the bill drafted by the Federal Minister of Labor, Hubertus Heil, to introduce the so-called “basic income for citizens”, the minimum state aid for those who no longer take out unemployment insurance. and have no income.
With the introduction in early 2023, basic income will replace the aid “Hartz IV”, which was approved at the beginning of the millennium by the social-democratic and green government coalition of the then Chancellor Gerhard Schröder, and which has since been criticized for the bureaucratic complexity of your request and the strict conditions to receive it. The new state subsidy will be 502 euros per month per adult without a family, compared to 449 euros for “Harzt IV”.
In addition, and if they have it, another 451 euros per month will be paid for the partner of the interested party, another 420 euros for each child between 15 and 17 years, 348 euros for children between 6 and 13 years and 318 euros for children under 5 years. These subsidies are also supplemented by other support for, among other things, the payment of rent, heating or the purchase of furniture and appliances. The cost of renting the house is fully borne by the state for the first two years and the savings of up to 60,000 euros can be kept without being taxed by the state. And for the first six months, fines are waived if the affected person does not accept a job offered by the employment office.
Hubertus Heil stressed that “the new system includes incentives to find ways to end poverty” and recalled that two in three long-term unemployed have no vocational qualifications. The bill provides for premiums of up to 150 euros per month for those who register for vocational training and obtain a certificate. “We don’t want to control poverty, but give people jobs,” Heil said.
The bill has been the subject of difficult negotiations within the tripartite government and criticism from the opposition and city councils, who are ultimately responsible for paying these subsidies. The conservatives of the Christian Democratic Union and the Christian Social Union (CDU/CSU) believe that easing demands on benefit claimants, such as periodically going to the job centers or taking unwanted jobs that have hitherto been strictly were in force, the long-term unemployment as a large part of the sanctions disappear.
“It could lead to cementing that income and encouraging discouragement rather than employment,” said Bavarian CSU leader in the Bundestag, Alexander Dobrindt. On the contrary, Van Links, her parliament speaker Susanne Ferschl, confirmed that the project causes “poverty by law”, as the increase in the subsidy does not compensate for the strong inflation. That should have been increased by at least 200 euros plus electricity costs, Ferschl demanded.
The German Reichstag also believes that the bill should be improved and that the balance between aid and demand should not disappear, that is, between the payment of subsidies and the beneficiary’s obligation to accept a job, even if this is not his or hers. her own preference. In spite of everything, the «citizen basic income» puts an end to the great injustices of the «Hartz IV» system. For example, subsidies for housing and heating can no longer be withdrawn if the interested party does not bother to look for a job. The children of the unemployed can keep the money they earn from mini-jobs during their holidays and if one family member dies, the rest no longer have to move to a smaller one within a maximum period of 12 months as before.
Moreover, in the future it will not be necessary to find a job as quickly as possible, but training will be promoted so that those interested can get a better job. Since the introduction of the ‘Hartz IV’, the perception of job loss has also changed. It used to be seen as a personal failure, now there is a belief that there are many external factors that lead to job loss. From the economic situation in general to that of the company in which you work in particular.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
