(de-news.net) – Politicians, business and welfare associations have spoken out in the discussion about reforms to citizen’s income. Saxony’s Prime Minister Kretschmer (CDU) went to criticize the latest tightening proposals by the traffic light coalition as “cosmetic.” He demanded that those who intend to receive citizen’s income provide proof that they are unable to work, justifying the reversal of the burden of proof by saying that thousands of people are able to work but do not. According to statistics, a total of six-figure numbers of people are fundamentally unwilling to accept work. Benefit cuts of up to 30 percent are not sufficient, Kretschmer added.
About five years ago, the Federal Constitutional Court had declared cuts of 60 or 100 percent to be incompatible with the German constitution. However, according to media reports, the obligation to take up 1-euro jobs could be reintroduced by the Federal Government for so-called total objectors. It was also announced that the traffic light parties were prepared to curb illegal work more strongly with regard to the receipt of citizen’s allowances.
The Federal Government had previously announced that, as part of a growth initiative, recipients of citizen’s allowance would expect a reduction of up to 30 percent for three months if they violated the new rules. Media also reported that a commute of up to three hours was reasonable for full-time employees. The German Trade Union Confederation warned against tightening the rules. An educator who until recently served as president of the Paritätischer Wohlfahrsverband, Schnelder, rang a similar note, adding that an increase in citizen’s allowance by around 40 percent to 800 euros per month for single people would be desirable.
The president of the German Institute for Economic Research, Fratzscher, on the other hand, called for improvements in two respects: a stronger emphasis on qualifications of those receiving citizen’s income and, above all, an attractive minimum wage. DIHK chairman Dercks made comparable comments. The President of the Central Association of German Crafts, Dittrich, demanded, however, that high achievers – for example in the areas of construction, manufacturing and services – should be valued more highly. Focusing on older people exclusively by granting them tax advantages was too short-sighted, Dittrich emphasized. In general, and specifically for younger people, the tax burden on employees should be reduced.
The SPD, the Greens and the FDP want to make working until retirement more attractive – through tax-free overtime and bonuses. Those who continue to work after retirement should receive social security contributions and be given the option of a pension deferral bonus. The Greens’ deputy parliamentary group leader Audretsch announced that more additional income would be made possible for all groups in a position to work. The vast majority of those receiving citizen’s allowance want to work, he stressed.
For the FDP, labor market policy spokesman, Kober, suggested that there should be a greater differentiation between groups of recipients: those on benefits, immigrants, and the long-term unemployed who suffer from health problems. The FDP chairman and Federal Minister of Finance, Lindner, had previously described the reform proposals – on participation, reporting requirements, and reasonableness rules – as a step in the right direction. FDP parliamentary group leader Dürr welcomed the fact that the SPD is now also considering a more flexible retirement age.
Federal Labor Minister Heil (SPD) said that he rejects “playing off” groups in the debate on sanctions and benefit levels, but added that is is the correct way that the government is tightening up. According to media reports, Heil is in favor of suspending the standard rates to beneficiaries of citizens’ money for two months in the event of total refusal, while rents will still be paid. The labor market policy spokesman for the SPD faction in the Bundestag, Rosemann, announced that the proposals presented so far would be reviewed for practicability. This includes the four-week reporting requirement for allowance recipients – a rule which may turn out to be too bureaucratic.
The CDU wants to fully replace the citizens’ allowance. Instead, there should be a “new basic security.” According to the CDU’s proposals, anyone who turns down a reasonable job without reason should no longer be considered needy. The economic policy spokesperson for the CDU-CSU parliamentary group in the German Federal Parliament, Klöckner, assumes that up to 1.9 million people will then be able to get back into work. Around 5.5 million people in Germany are currently recipients of citizens’ allowance.
In May of this year, it became apparent that the increase in the level of citizens’ allowance would be zero in 2025. In addition, the Institute for Labor Market and Occupational Research articulated that the payment of citizens’ allowance rates can reduce the incentive to accept a job – but at a time when the Federal Government’s “demand and support” reform proposals had not yet been presented.
Thorsten Koch