Of course, the argument continues now as to whether this is a fresh start or a fraudulent label. But it is rearranged who is on which side, who follows the path from Hartz IV critic to citizen money supporter. “We are really overcoming Hartz IV, this is the biggest reform since Hartz IV was introduced,” says the social politician and Hartz IV critic Jens Lehmann, who was in charge of negotiating citizens’ money for the Greens in the coalition talks. Ulrich Schneider, on the other hand, managing director of the Paritätischer Gesamtverband, attacks the traffic light, saying that the citizens’ money is “almost indistinguishable” from Hartz IV.
But even the German Federation of Trade Unions (DGB) has a different opinion. “Overall, noticeable, substantial progress is being made with the citizens’ money. The old, stigmatizing and unjust Hartz IV system is actually being partially overcome,” said DGB boss Reiner Hoffmann Süddeutsche Zeitung. And praise can also be heard from liberal economists, Lars Feld, the former chairman of the so-called economic wise men, told the SZ: “The citizens’ money has positive approaches.”
In fact, the Bürgergeld in Germany’s job centers should change a few things, possibly too much if it is up to professionals like Feld. First of all, there are the sanctions. The authorities’ employees should punish recipients of unemployment benefit II much less often if they do not show up for appointments or if they do not accept a job that has been offered. “There is a six-month period of trust,” says the coalition agreement. The wording leaves room for interpretation, but from what you hear from negotiators from several parties, the direction is clear: There will be fewer fines in the first six months, possibly none at all.
In addition, there is a one-year “moratorium on the previous sanctions below the subsistence level”. This sentence can also be interpreted cheerfully, but according to the specialist politicians it will mean that by the end of 2022, when the sanctions are to be re-regulated by law, job center customers will have less money cut, possibly not at all.
In future, the unemployed may prefer to do an apprenticeship
Another technical term, which also spread horror, will soon also belong to the socio-political past: the priority of mediation. It states that ALG II recipients must first be placed in a job, even if, for example, they would rather start an apprenticeship. In the future, the job centers should have the leeway to decide for themselves whether someone should catch up on an apprenticeship, take up further training – or even a job. Behind this is the experience that many unemployed people end up in helper positions due to a lack of training, but are soon back in the job center because it was an unsafe job.
The SPD, Greens and FDP are also approaching regulations for property and housing, neither of which should be checked for the first two years. The assets that are often saved for a long time remain untouched. During this time, the unemployed no longer have to move to a cheaper apartment if the old one is viewed as too generous. And something else is set to change: the coalition wants to get children out of the ALG II system and instead pay them their own basic child benefit. Anyone who earns something in addition to unemployment benefits should be able to keep significantly more of it.
Especially with the sanctions, the traffic light partners are taking a risk. You want to largely, if not completely, waive penalties for a year. You are saying goodbye to the Hartz principle of “promoting and demanding”. This leads deep into the fundamental question of whether recipients of basic income support do not want to work anyway, even without stress from the advisor. Conversely, whether the community can ask for something from people who receive government support. And how much pressure the state can put on those able to work.
“You have to make sure that the demand for citizens’ money is not weakened too much,” says economics professor Lars Feld. “Without sanctions, this is a harmful step towards an unconditional basic income” – in other words, state support without conditions and obligations. It is noteworthy: The unemployment figures are also falling significantly now, although the requirements for ALG II recipients have already been eased in the course of the Corona crisis, for example when checking assets and housing costs. “If you remove the sanctions, it should still lead to more unemployed in the long term,” says Feld.
Experts warn against giving up penalties altogether
Georg Cremer was General Secretary of the German Caritas Association for 17 years. He has just written a book on the subject, “What makes you strong is social”. About the citizens’ money, that could be something, says the professor. “I think it’s right to focus on training and support first – and to defuse the sanctions.” In this way, ALG II recipients could find better jobs in the long term. But one should not completely forego the possibility of sanctions, otherwise the citizens’ money would become an unconditional basic income. “Every young adult who moves out of home would then be entitled to it – that is an illusory concept”.
Cremer joins other experts who warn against overturning everything, as Hartz IV critics are calling for. They demand a real departure from the “Hartz IV regime”. They want higher rates – on which the traffic light partners do not commit themselves – but also an end to the “inhuman and existential-threatening sanctions”, as it is called in the social alliance “insist on rights”.
Will the citizens’ money calm the heated debate about the Hartz reforms? In any case, it will be much better for many people, says the Green Lehmann. “Citizens’ money will help pacify the debate,” believes Lars Feld. But the debate will come again, in less than a year. Then the moratorium expires – and then it comes up again, the question of the sanctions.