Bundestag Discussions This Week
News Article: Key Developments in German Government Policies as of Mid-2025
In the ever-evolving landscape of German government policies, several significant developments have taken place, aiming to address various pressing issues and uncertainties. Here's a roundup of some key updates:
Extending the Planning Security Act
The Planning Security Act (PlanSiG) has been extended until 31 December 2023 to ensure continued preparedness for the ongoing uncertainties posed by the pandemic.
Child Day Care Quality Act and Housing Allowance Reform
The Child Day Care Quality Act, a German law, provides four billion euros over two years to enhance staffing, language education, and day-care services in child day care centers. Simultaneously, housing allowance reform is being implemented to alleviate low-income individuals from rising energy costs, with an average increase of around 190 euros per month in 2023.
EU Cross-Border Transformation Directive
The implementation of the EU Cross-Border Transformation Directive, a 2019 regulation, is underway in Germany. The directive aims to protect employee co-determination rights and mandate adequate information and consultation to employees during cross-border restructuring. While the specifics of the German implementation are yet to be finalized, it's expected to affirm employee participation rights, establish detailed and timely information provision frameworks, and potentially create special negotiation bodies for cross-border cases.
Citizen's Income
The Citizen's Income, replacing the previous basic security (Hartz IV), will be introduced on January 1, 2023. Its goal is to bring people into long-term employment through comprehensive support. The new system will increase the basic rate by around 50 euros and adjust to inflation more quickly in the future.
Energy Tax and Electricity Tax Act
The federal government has proposed a draft bill for the implementation of the EU Directive, which aims to ensure energy-intensive businesses continue to receive tax relief. Additionally, a second heating cost subsidy will be paid out to needy households to compensate for additional costs in 2022.
Schengen Information System and Mid-Level Jobs
The federal government's draft bill aims to create the legal prerequisites for the implementation of the third generation Schengen Information System (SIS), a common European search database for persons and objects. Furthermore, the draft bill provides for an increase in the upper limit for so-called mid-level jobs to benefit low-income earners and increase the incentive to be employed even beyond a mini-job.
Animal Medicines Act
The federal government is introducing a draft bill to amend the Animal Medicines Act to better record and further reduce antibiotic use in agricultural operations.
Economic Stabilization Fund
The federal government's bill aims to reactivate and realign the Economic Stabilization Fund (WSF) to expand its purpose to mitigate severe economic damage caused by the crisis on energy markets. It also seeks to create a credit authorization of 200 billion euros in 2022.
EU Origin Certificate Registers
The EU decided in 2018 to establish origin certificate registers for gaseous energy carriers such as gas and hydrogen, as well as for heat and cold. A corresponding Bill of the Federal Government for implementation will be discussed in the first reading this week.
Child Day Care Quality Act Further Developments
The Child Day Care Quality Act further develops the Good Day Care Act, which has achieved improvements in personnel keys and free day-care places in recent years.
Retiree and Pensioner One-Time Payment
In light of rising energy and living costs, a one-time payment of 300 euros is provided for retirees and pensioners of the federal government.
For the most up-to-date specifics regarding the EU Cross-Border Transformation Directive implementation in Germany, direct consultation of official German legislative publications or legal commentaries published after mid-2025 would be necessary.
- Discussions on policy-and-legislation, such as the implementation of the EU Cross-Border Transformation Directive, are ongoing in German politics to protect employee co-determination rights and mandate adequate information and consultation during cross-border restructuring.
- General news like the introduction of the Citizen's Income, replacing the previous basic security (Hartz IV), is set to take effect on January 1, 2023, with the goal of bringing people into long-term employment through comprehensive support.
