press review
Hartz IV successor
“The reform has the potential to improve people’s lives”: This is how the press assesses citizen income
An employee of the Federal Employment Agency in Düsseldorf advises a customer: the current Hartz IV system is to be replaced by a citizen’s allowance on January 1st.
© Oliver Berg / DPA
It is the biggest social reform in years: the traffic light coalition has launched the citizen benefit that is to replace Hartz IV. The draft law met with both praise and criticism from commentators in the German press.
The federal cabinet has given the go-ahead for the introduction of citizen income in Germany. It is to replace the current Hartz IV system on January 1st. The draft law by Federal Labor Minister Hubertus Heil (SPD) provides, among other things, for a significant increase in standard rates. Single adults should receive 502 euros a month instead of 449 in the future. The previous sanctions will be relaxed. Anyone who repeatedly misses an appointment at the job center can be subject to a ten percent reduction in benefits from the outset. After the six-month “trust period” has expired, higher deductions are possible for so-called breaches of duty – such as the refusal of a reasonable job: 20 percent for the first violation and 30 percent for the second.
At the same time, the possibilities for earning additional income are expanded compared to Hartz IV. Additional benefits such as a “further education allowance” are also intended to create extra incentives to seek employment. Whether the apartment of a beneficiary is appropriate will in future only be checked after two years. The same applies to assets up to a certain upper limit.
This is how the German press commented on citizen money:
“Märkische Oderzeitung” (Frankfurt/Oder): “Hartz IV was always better than its reputation, which is why the new citizen’s allowance can’t really be bad. Hartz IV owes its bad reputation to two things in particular. On the one hand, unemployment benefit I was initially only paid for one year (now for up to two years). The working middle class was faced with a very rapid fall, which triggered widespread fears. Secondly, the standard rate was calculated too low from the start. The new basic income changes nothing in principle on either point. It remains to be seen whether with the changed name the reputation also improves.”
“Weser Courier” (Bremen): “How poor are you with around 110 euros a week when the state pays for housing and heating? In an unemployed family with two teenagers, that’s what’s left – per capita for food, clothing, other things. Certainly not naked misery, but still so little that you want to improve. Since the new citizens’ allowance offers more help and incentives than Hartz IV, it’s also fair. Even more money and even less control would be an unconditional basic income, which one would then have to call that.”
“Pforzheim newspaper”: “The federal government’s draft law on citizen income contains a lot of good things, but unfortunately also a lot of bad things. The good elements can certainly help to combat long-term unemployment more effectively. However, the bad elements counteract this in part, causing social imbalance and putting a strain on the economy as a whole. Combined with the increase in the monthly standard rate by almost twelve percent to over EUR 500, there is an imbalance to the disadvantage of those who work regularly at the lower end of the wage scale.Those affected – especially those with families – will think twice about whether regular work is suitable for it continues to be worthwhile.”
“Hannoversche Allgemeine Zeitung”: “Citizen’s allowance instead of Hartz IV: This is an opportunity to reduce the stigmatization of those affected, but also to reduce fears of social decline in the middle of society. At the same time, obligations to cooperate and sanctions are by no means abolished. That’s right, because it’s about taxpayers’ money Minister Heil’s reform has the potential to improve people’s lives. Agenda 2010 will not be buried with it, but it will be significantly further developed after 20 years.”
“Stuttgart Newspaper”: “On the other hand, one thing is certain today: the recipients get more money from the citizen’s allowance than from Hartz IV. But that has nothing to do with the fact that the traffic light violated the balance between those who receive state aid and those who make a living from the work of their hands. Even if there were no citizen’s income, the Hartz IV payments would have had to increase – because otherwise millions of people would not have received inflation compensation.”
“Those affected will consider whether regular work is still worthwhile”
“Leipziger Volkszeitung”: “If the development in the coming year is worse than forecast, further aid could be necessary – not only for recipients of basic income. It is morally questionable in the debate about relief to play off the long-term unemployed and those who go to work for little money against each other. Both need support – even if that means higher burdens for people with high incomes.”
“Augsburg General”: “Yes, the Hartz laws were not perfect. Yes, they also produced injustice and cost the SPD a lot of sympathy, which lost supporters and members to the Left Party. The reforms were nevertheless necessary. Where a state promotes a lot and demands little, it only cements the existing conditions and almost inevitably creates incentives for abuse as well.”
“Allgemeine Zeitung” (Mainz): “There are good reasons to turn around the formula of demanding and promoting and to put the promotion in the foreground in the case of citizen money. To forgo the demands – i.e. sanctions if the clients do not play along – is a mistake. Because recipients of transfer payments do not more is demanded of what every employee must recognize and comply with: the binding nature of appointments, of agreements, of obligations. Such unworldliness may not harm the Greens. But the SPD alienates its core clientele more with this policy than with the so hated Hartz IV. “
“Rhein-Zeitung” (Koblenz): “Counterproductive are the elements that contribute to overstretching the solidarity of the taxpayers. The traffic light government wants to forego sanctions in the first six months if recipients do not comply with the rules. The strong increase in the protective assets in the first two reference years will expand the group of recipients, which drives up the costs. Also, the adequacy of the apartment is no longer checked during this time. In addition to the rent, the state also assumes the complete, sharply increased heating costs. Combined with the increase in the monthly standard rate by almost 12 percent to more than 500 euros, there is an imbalance to the disadvantage of those who work regularly at the lower end of the wage scale. Those affected – especially those with families – will carefully consider whether regular work is still worthwhile for them.”
“Central German Newspaper” (Hall): “Promote and demand – that was the guiding principle with which the red-green federal government introduced Hartz IV at the time. Only that funding was neglected. That should now change fundamentally. Citizens’ income instead of Hartz IV: This is an opportunity that To reduce the stigmatization of those affected, but also to reduce fears of social decline in the middle of society. It’s worth the try.”