With the introduction of the citizen’s income, millions of people in need in Germany will receive significantly higher benefits on January 1. After the Bundestag, the Bundesrat also approved the social reform on Friday. The traffic light coalition has thus successfully completed its central socio-political reform after weeks of wrangling and a mediation process. Chancellor Olaf Scholz spoke of a milestone: “This reform is a milestone in social policy in Germany”.
The SPD politician told Focus magazine that it was about helping those who lost their jobs to find a job. “This reform is aimed at helping the unskilled long-term unemployed,” Scholz stressed. German Labor Minister Hubertus Heil (SPD) said in the state chamber: “We are creating a new system away from Hartz IV to civilian income.” It’s about protection and opportunity. The promise of the welfare state is being renewed.
Steady work instead of simple auxiliary jobs
Given the high inflation, basic insurance policies will increase by more than 50 euros in 2023. Single people will soon receive 502 euros per month. Important parts of the reform will come into force on 1 July. The job centers should then be able to accommodate more unemployed people. The placement in permanent work instead of simple auxiliary jobs must be better than before. To this end, those affected must be further qualified or undergo training or retraining. In addition, the recipients of basic security can earn more in the future, for example with a mini job.
The resolutions were preceded by a conciliation process between the Bundestag and the Bundesrat. The Union had rejected the original plans of the SPD, Greens and FDP. The CDU and CSU complained that the unemployed were not encouraged enough to participate. The Union no longer saw the balance between funding and demands. In the Federal Council, citizens’ incomes fell first.
“Promoting and demanding also applies to civilian income”
In a dig at the union, Minister of Labor Heil has now turned against the “common suspicion” that the long-term unemployed are too lazy to work. In the final debate in the Bundestag, FDP Vice-President Johannes Vogel had previously emphasized: “Promoting and demanding also applies to citizens’ incomes.” Britta Haßelmann, leader of the Green Group, said: “The populist method had no place in the conciliation committee.” whether it was because CDU leader Friedrich Merz and CSU leader Markus Söder were not there.
AfD deputy Götz Frömming assessed the civilian money as a “false labelling”. Gesine Lötzsch of the left said: “Basic income is not a victory over Hartz IV, it is just a deceptive maneuver.” In the Bundesrat, Thuringia’s Federal Affairs Minister Benjamin-Immanuel Hoff (left) justified his state’s approval by saying that it is, among other things, the higher default rates that are related to necessary immediate measures.
More people with a migration background
The Prime Minister of Hesse, Boris Rhein (CDU), assured that the Union’s action had nothing to do with the blockade. A good compromise has been reached. Saxony-Anhalt Prime Minister Reiner Haseloff (CDU) stressed “we need new approaches”. Compared to the past, there are more unskilled people and people with a migration background who need perspective. “A third of the unemployed have not completed their education,” said Rhineland-Palatinate Prime Minister Malu Dreyer (SPD).
Mecklenburg-Vorpommern Prime Minister Manuela Schwesig (SPD) told the Union that the debate was “poisoned”. It was suggested that working in Germany was no longer worthwhile.
Reduction of civilian income possible
Under pressure from the CDU and CSU, the potential penalties for dereliction of duty were tightened, contrary to Heil’s original draft. As early as January, such reductions in civilian income have been staggered and possibly up to 30 percent if the unemployed, contrary to the agreements, do not apply for a job or participate in a measure, for example for qualification. Those affected may also keep slightly less money they saved than originally planned. This so-called protective capital will amount to 40,000 euros in a “waiting period” of one year.
In the Bundestag, 557 MPs voted for the amendments approved by the Conciliation Committee of the Bundestag and Bundestag. An informal round of the traffic light coalition and the Union negotiated the compromise. The AfD therefore criticized the procedure as unconstitutional. Finally, citizens’ income received a “very large majority” in the Bundesrat, as stated by the President of the Bundesrat, the first mayor of Hamburg, Peter Tschentscher (SPD). Bavaria had abstained.
Source: Krone
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