The German Federal Council has cleared the path for a comprehensive overhaul of the country's welfare system, approving legislation that will replace Bürgergeld with a revamped Basic Income Support (Grundsicherung) featuring stricter sanctions and increased cooperation requirements for recipients.
The Bundesrat approved on Friday the legislation previously passed by the Bundestag, which aims to bring more people into employment and prevent abuse of social benefits. The new basic security system is set to replace Bürgergeld, which was introduced by the previous government.
While the Federal Council's approval was not legally required, it had the option to invoke the mediation committee between the Bundestag and Bundesrat, which would have delayed the law's implementation. The Bundesrat opted against invoking this mechanism on Friday.
With this reform, the black-red coalition seeks to make the new basic security system more targeted and equitable than the current Bürgergeld. Recipients will face stronger obligations to cooperate with authorities. Individuals who miss appointments at job centers may have their benefits reduced more quickly or even completely suspended.
The reform emphasizes the principle of demanding and supporting more strongly than the current Bürgergeld system, according to the federal government's intentions. While people who need assistance should continue to rely on state support, those who are able to work must actively participate in earning their own livelihood.
Individuals who drop out of training programs or fail to apply for jobs will face stricter benefit reductions than previously. The standard requirement can be reduced for three-month periods under the new system. Repeated missed appointments at job centers will also be sanctioned according to a graduated procedure. In extreme cases, for benefit recipients who remain persistently unreachable, all payments including housing costs could be suspended.
“Social is what activates, not what merely provides for people,” said Bavaria’s Social Affairs Minister Ulrike Scharf (CSU) in the Bundesrat. “Social is what rewards a sense of duty, and social is what demands personal responsibility. We have neglected these fundamental principles of the social market economy. "
She expressed relief that Bürgergeld is now "history," stating it had "damaged trust" and "overwhelmed our material strength and our mental consensus for solidarity." The new basic security system points the way "back to a solidarity-based performance society," she added.
The Union is implementing a central campaign promise with this reform. The SPD is consenting to the rollback of its own project from the previous government, even against resistance from its own party youth, who have even initiated a member petition against the reform.
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