After a highly emotional debate, the Bundestag gave the go-ahead for citizen income. The Federal Council is now decisive. If the Union blocks the reform there, difficult weeks lie ahead.
“Fake news”, “social indifference” and “schizophrenic”: The words that were spoken in the plenary session this Thursday show how charged the debate about the planned citizens’ income is. The Bundestag approved the project at noon with a majority of the SPD, Greens and FDP. But the most important hurdle in the Bundesrat has not yet been cleared.
On Monday, the state chamber will deal with the social reform in a special session. If, as announced, the Union blocks the project there, according to Labor Minister Hubertus Heil (SPD), a “speedy conciliation procedure” could save the reform. Heil campaigned again not to refuse approval of the “biggest welfare state reform in 20 years”. Here is an overview of the details of the reform – and the points of contention.
Citizen’s income should overcome Hartz IV
The core of the reform is a system change: 20 years ago, the then Chancellor Gerhard Schröder (SPD) set up a commission headed by ex-VW manager Peter Hartz. Several laws emerged from their reform proposals against the mass unemployment of the time: “Hartz I” to “Hartz IV”. The pressure on the unemployed increased, which led to protests and ultimately culminated in Schröder being voted out of office. Now this Hartz IV system, which has been controversial for years, is to go. In the future, the unemployed should be put under less pressure by threatened withdrawal of benefits (sanctions) and instead receive more support with further training measures.
Great dissent in the Bundestag
In the plenum on Thursday, it became very clear that there are major differences of opinion between the government and the opposition on this matter. Union faction Vice Hermann Gröhe (CDU) accused the traffic light of refusing any debate about the “weaving errors” of the Citizens’ Income Act. “With this arrogance you will not advance the welfare state, with this arrogance you will fail!” said Gröhe. The AfD and the left also expressed dissatisfaction with the citizens’ income – albeit for different reasons. AfD parliamentary group vice-president Norbert Kleinwächter said that in the future the basic income would mainly help people who were not willing to work. Left parliamentary group leader Dietmar Bartsch was particularly bothered by the fact that, from his point of view, the reform plans would not lead to a real departure from Hartz IV.
Higher rule rates
The current Hartz IV standard rate of 449 euros for single people is to be raised to 502 euros. That it has to be at least that much is undisputed because of the sharp increase in the cost of living. The CDU and CSU had proposed supporting the increase, but removing it from the Citizens’ Income Act so that it could come into force as an individual measure on January 1st. The traffic light refuses.
“trust period” and “waiting period”
Two of the buzzwords in the citizen money law. The traffic light says they don’t want to put anyone under general suspicion. For this reason, benefits should only be reduced in the first six months of receiving citizenship benefit (“trust period”) in exceptional cases if someone persistently does not cooperate with the job center. In addition, nobody should have to touch their assets for the first two years (“waiting period”), unless it is “considerable” and is more than 60,000 euros, plus 30,000 euros for each additional household member. It should also not be necessary to move to a smaller apartment during the waiting period.
“sparing assets”
Even after two years of receiving basic income, more assets than before should remain untouched. This also applies to systems for old-age provision or homes up to 140 square meters and condominiums up to 130 square meters. It’s not about big villas in Ticino, says Heil. “It’s about the question that people who have worked for something in life don’t have to hit everything on the head when they get into trouble.”
Continuing education
In addition to the citizen’s income, there should be 150 euros per month for further training if someone catches up on a vocational qualification, or an additional 75 euros if other further training measures are accepted. In the future, the aim should no longer be to place those affected in any job as quickly as possible, but to prepare them for permanent employment through further training.
How to proceed now
The future of citizen income now depends primarily on the vote of the Union-led countries in the Bundesrat. After the special session scheduled for Monday, it will become clear whether mediation is necessary. This means a search for compromise in the joint mediation committee of the Bundestag and Bundesrat. Whether the citizens’ allowance can then come into force on January 1, 2023 as planned depends on whether the process is completed by the end of November. The head of the CSU deputy in the Bundestag, Alexander Dobrindt, told the broadcaster “Welt” on Thursday: “I assume that the negotiations will be very lengthy.”
Source: Stern
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