Is it rather Janus's leadership or MERZ's administration in Spain being referred to?
In a move that has sparked controversy, German Chancellor Friedrich Merz (CDU) is planning to comprehensively reform unemployment benefits, while parliamentarian allowances have seen a significant increase.
The increase in parliamentarian remuneration, which now stands at around 11,833 euros per month since July, has raised eyebrows due to the lack of clear information regarding the German federal government's position on a planned reform for transparent and automatic increases.
Merz's justification for the reform is to make work more attractive than living on benefits. However, critics argue that the reform threatens to create more bureaucracy, particularly with stricter rules on housing costs, reduction of the asset threshold, and harsher sanctions for non-compliance.
The opposition parties, including the Left, have criticised the allowance increase as "out of touch" and "unfair" given stagnating wages and rising cost of living. They call for a stronger focus on domestic social balance in the budget.
The SPD, the junior coalition partner, is quietly calling for adjustments to the unemployment benefits reform. Labor Minister Barbara Bas emphasises that families with children should not bear the brunt of the reform.
Meanwhile, the government's military aid to Ukraine, amounting to around 38 billion euros in military aid and 34 billion euros in civilian aid since the start of the Russian attack, has demonstrated questionable foreign policy reliability but strengthened doubts at home. Merz's autumn will be a test, as he needs to balance internal political rigor, international political solidarity, and political credibility.
The increase in allowances remains a symbol of the distance between the political class and the population, with the gap seeming to widen. The reform barely addresses the system's central weakness - high administrative burden. Critics warn that additional inspections and proof requirements will only increase bureaucracy.
In 2024, out of 10.7 billion euros paid to job centers, only 3.8 billion went directly to support, while 6.5 billion was tied up in administrative costs. This raises questions about the efficiency of the current system and the need for reform.
As Merz's planned unemployment benefit reform and the allowance increase fuel the image of a political elite that does not adequately balance its own interests with the situation of citizens, the success of his coalition and trust in the state's ability to act will depend on his ability to balance these factors.
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