Proposal for a Commission-backed directive on the subject under investigation requested.
In a bid to save billions and modernise the welfare state, CSU leader Markus Söder has advocated for stricter rules in job offers, housing benefits, and asset limits, as well as tighter controls on unemployment benefits and subsidies for heat pumps.
The proposals, which aim to make the welfare system more efficient and targeted, have sparked conflicting views from the Union and SPD. Söder's demands for savings in unemployment benefits and subsidies for heat pumps have been met with resistance, while the SPD has expressed support for certain tightening of unemployment benefits, including increased pressure on "total refusers" and tightened sanctions.
Chancellor Friedrich Merz's announcements for sweeping social reforms have strained recent agreements for more unity in the coalition, adding to the ongoing debate over reforms under difficult economic and financial conditions.
Lars Klingbeil, co-party leader and Federal Minister of Finance, has emphasised the need to make an effort and stop those caught working black. He believes it is unacceptable for someone to receive unemployment benefits while working black and enriching themselves at the expense of the general public.
The commission established by the government is starting its work today to make proposals for the areas of unemployment benefits, housing benefits, and child supplements by the end of the year. The proposals are expected to be implemented from the beginning of 2026, as announced by the Ministry of Social Affairs.
The black-red coalition is aiming for several laws for reforms of the social systems in the fall. Söder, who believes the welfare state needs a "fundamental update" to remain performant and help those in need, has reaffirmed his stance, stating that Germany spends 50 billion euros a year on unemployment benefits, half of which goes to people without German citizenship.
Meanwhile, SPD leader Barbara Bas has called the notion that the welfare state can no longer be financially afforded as "bullshit". However, she has also emphasised the need for reforms, stating that the welfare state should be there to support those who truly need it.
In other news, the fire department in Hamm is celebrating a big party, while there is an ongoing large-scale internet outage in the city. Open doors are happening at the HSHL and Hamm erFahren 2025.
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