The economic wing of Germany’s CDU is pushing the Federal Employment Agency to collect billions in unpaid claims from former recipients of the Citizen’s Benefit (Bürgergeld) welfare benefit. The agency must present a “comprehensive collection and recovery plan,” according to a proposal by the Mittelstands- und Wirtschaftsunion (MIT) for the CDU’s federal party conference in February, as quoted by Die Welt on Wednesday. The focus, it said, is on “overpayments and unpaid loans.”
“Debts must be repaid, by benefit recipients in particular,” MIT chairwoman Gitta Connemann told Die Welt. “Allowing billions to expire is not a trivial matter. It is unfair to taxpayers and contributors, and the funds are needed elsewhere.”
As of September, outstanding claims held by the Federal Employment Agency in connection with the Citizen’s Benefit reportedly amounted to €4.4 billion. Claims related to unemployment benefits, short-time work benefits and vocational training allowances totaled €1.9 billion.
In its proposal for the party conference, the MIT argues that the legal framework may need to be “tightened” to ensure effective enforcement of existing claims. It also calls for examining whether incentive mechanisms could be introduced to motivate the agency and job centers to pursue outstanding debts more consistently.
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