Bavaria Pushes for Basic Income Reform in Bundesrat
The Bavarian cabinet is leading an initiative in the Bundesrat this week to change the current basic income support system, aiming to move away from the "citizen's income" model. State Chancellery Leader Florian Herrmann from the CSU declared that they seek a "fundamental shift" in the system and want to prioritize the Harz IV system over citizen's income.
The CSU Why?
According to Social Minister Ulrike Scharf (CSU), the failure of the "citizen's income" to get people into work as quickly as possible and its significant cost increase of 3.25 billion euros to an expected 27 billion euros in 2024 make it an unappealing option. Scharf emphasized the importance of work for healthier individuals, underscoring the need to delay the January 1, 2024 citizen's income increase to restore balance between social welfare and taxpayer interests.
The Bavarian Plan
The proposed changes aim to help people out of the citizen's allowance as soon as possible and back into work. The Bavarian cabinet plans to reassert the principles of personal responsibility, the performance principle, and cooperation from the benefit recipients. Direct sanctions will be imposed for missed appointments for professional reintegration, and job center support will be increased.
The so-called waiting period, which leaves untouched personal reserves in the first year of reference, will be eliminated. Additionally, the period for waived housing assessment will also be reduced.
Additional Insights:
- The Christian Democratic Union (CDU) has criticized the "citizen's income" as too generous, with few incentives for work, and have proposed cutting billions in spending by forcing Bürgergeld recipients into low-wage jobs, potentially leading to higher poverty rates and increased social inequality.
- A CDU-SPD coalition government could compromise on social welfare policies, although the CDU's stance on immigration and social security suggests that they would push for stricter conditions and more work-oriented policies, which could be at odds with the SPD's more liberal approach to social welfare.
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Sourcing the Information
This article is based on information from Stern, a German weekly magazine, with additional insights from research into the positions of major political parties regarding basic income support and work incentives in Germany.
