Söder: Postpone increase in citizens' income and revise entire benefit

Söder Proposes Delaying Wage Subsidy Boost and Rethinking Entire System

Markus Söder, the leader of the CSU, called for putting the brakes on the augmentation of the citizen's income and revising the overall structure of the program. In an interview with Stern magazine, he argued that there should be more incentives for people to work. He hinted at introducing a measure in the Bundesrat, focusing on revamping the wage subsidy scheme.

Even before the introduction of the present wage subsidy system, the CDU/CSU-led states had pushed for changes in the Bundesrat, claimed Söder. His government achieved significant victories, such as enhancing penalties, during that period. However, the wage subsidy system failed to clear the practical test.

Söder insisted that the overall wage subsidy amount is excessive, leaving workers receiving significantly less than those who do not work. He warned against the potential negative consequences of this high wage subsidy, as it instills the wrong motivations.

The Bavarian Minister President suggested cutting off wage subsidies for newly arriving Ukrainian refugees. While it is illegal to revoke past payments, Oettinger suggested an adjustment in future cases. Based on his proposal, social welfare benefits should only be granted after five years instead of 18 months for first-time seekers in Germany.

To discourage excessive reliance on social benefits, Söder proposed giving asylum seekers payment cards instead of cash for necessities, like clothing and food. He advised a comprehensive review of the constitution, particularly the basic right to asylum, to determine whether it aligns with modern-day realities.

The FDP, the coalition partner in the traffic-light coalition, echoed Söder's views on postponing the wage subsidy increase. Bijan Djir-Sarai, the FDP Secretary-General, criticized the proposed 12% surge in the wage subsidy in the face of tight budgets and the lowest inflation since 2021. He urged the Federal Minister of Labor, Hubertus Heil, to cancel the increase plan.

Related Content:

• Markus Söder and the CSU leadership advocate for delaying the augmentation of the wage subsidy and a complete overhaul of the system.
• The Bundesrat-proposed initiative aims to revise the wage subsidy scheme, with a focus on balancing rewards and demands.
• The Bavarian Minister President criticized the wage subsidy for setting incorrect incentives, emphasizing the importance of financial rewards for working individuals.
• Söder's proposal consists of halting wage subsidies for newly arriving Ukrainian refugees and introducing stricter welfare policies for first-time seekers.
• The Bavarian Minister President encourages the use of payment cards to provide necessities for asylum seekers, contributing to a more responsible evaluation of the basic right to asylum.
• The FDP, a coalition partner in the traffic-light coalition, also supports delaying the wage subsidy increase, citing gigantic social spending expenditures.
• Bijan Djir-Sarai, the FDP Secretary-General, criticized the proposed 12% increase in the wage subsidy during tight budgets and low inflation and urged Federal Minister of Labor Hubertus Heil to halt the plan.

Sources:

Additional Insights:

1. Economic Stabilization: The FDP advocates for reducing government social spending on migration and family policy to stabilize the economy. They aim to simplify administrative procedures and decrease the number of civil servants, thereby managing public finances more effectively.
2. Immigration and Asylum Policy: The FDP and Markus Söder have emphasized the importance of maintaining stricter immigration and asylum policies. They suggest reviewing and tightening up migration policy, including outsourcing asylum applications to third countries, reflecting a more restrictive approach to social welfare and benefits.
3. Debt Brake Mechanism: The FDP is fervent about keeping the debt brake mechanism, which limits annual federal deficits to 0.35% of GDP. This stance indicates a preference for fiscal discipline and reducing public debt, which might have implications for social spending and benefit increases.
4. Labor Market Transformation: Friedrich Merz aims to make work financially attractive and transform the labor market. He proposes creating a Federal Digital Agency for Skilled Immigration to attract talent, reflecting a focus on workforce development rather than augmenting benefits.
5. Defense Spending: The FDP and CDU/CSU support maintaining defense spending at least 2% of GDP. This could imply that resources for defense might be prioritized over social welfare programs, potentially impacting wage subsidy increases.
6. Tax Cuts and Economic Revitalization: The FDP's "Agenda 2030" includes decreasing corporation tax to 25% and raising the top income tax rate threshold to €80,000. This could be part of a broader strategy to revitalize the economy, influencing decisions regarding social spending and wage subsidy increases.

These insights suggest that the FDP and Markus Söder (as part of the CSU) advocate for a more restrictive approach to social welfare and benefits, focusing on economic stabilization, immigration control, and fiscal discipline.