After the presentation of a compromise in the dispute over citizen income, Federal Finance Minister Christian Lindner (FDP) rejected criticism of the social reform by the opposition. “Especially when it comes to wealth, I advise against entering a shabby competition,” said the FDP chairman world on Sunday.
According to Lindner, if people slip into the cover because of a stroke of fate, they shouldn’t have to eat what they might have built up over decades. The protective assets include certain allowances on assets that you do not have to use to make a living. In the first two years, the savings of a recipient of the basic income is 60,000 euros, each additional person in the household may own 30,000 euros. Home ownership should not be touched either. In addition to the Union, the Federal Court of Auditors had criticized this as “disproportionate”.
After the criticism, the traffic light had agreed on changes to the citizen money. Corresponding plans were announced on Friday. The Liberals had also called for improvements after the lost state elections in Lower Saxony. The Union had even threatened to block the reform in the Bundesrat. If that happens, the legislative package will have to go to the conciliation committee, which would jeopardize the timeline for reform.
Changes to the heating cost subsidy and asset disclosure
According to the plans of the federal government, the citizen’s income is to replace the previous basic security system Hartz IV on January 1st. The aim is to put those affected in a position to be able to concentrate more on further training and looking for work. They should be put under less pressure by the job center. The standard rates of basic security should also increase by around 50 euros per month. Federal Labor Minister Hubertus Heil (SPD) described the plan as “one of the largest social reforms in 20 years”. The SPD in particular wants to put the Hartz IV issue behind it, which has led to years of unrest in the party.
As can be seen from a formulation aid available to the SPD, Greens and FDP parliamentary groups from the German Press Agency, there are now to be some tightening of the two-year waiting period for beneficiaries. It is planned, for example, that the heating costs during this time should only be covered to an appropriate extent.
The original government draft did not provide for a limit on the assumption of costs at this point. The Union had sharply criticized that. What is also new is that in future, in addition to declaring that they have no significant assets, recipients of benefits will also have to enclose a self-assessment. This is also to prevent misuse of services. According to dpa information, the compromise proposal is to be approved by the parliamentary groups on Tuesday.
“Cosmetics” says the CDU about the changes
Next Thursday, the Bundestag wants to deal with the reform in the second and third reading. Apparently, the opposition’s reservations were not dispelled even after the changed plans became known. The head of the SME and Economic Union, the CDU MP Gitta Connemann, told the dpa: “Our criticism remains: the citizen money is a departure from the principle of funding and demanding.”
The promised adjustments did not change the substance of the citizens’ income. The new traffic light draft provides for stricter rules for recipients of citizen income. But: “These are not serious changes – these are cosmetic,” says Connemann. “There are still no serious incentives to go back to work. Money should still be paid, even if there is no willingness to perform.”
Finance Minister Lindner, on the other hand, said world on Sunday: “The basic income rewards additional earnings and qualifications, refusal to participate is sanctioned. The basic income does not replace Hartz IV with nonchalance, but with a more performance principle.” Minister of Labor Heil said Frankfurter Allgemeine Sunday newspaper, the traffic light reacted quickly to the demands of the Bundesrat and will make numerous changes in the Bundestag. “The reimbursement of heating costs, for example, is checked for adequacy so that no false incentives are set. And the job centers have more opportunities to take action against abuse of benefits.” This means that the traffic light meets the demands of the Union.