(de-news.net) – Amid rising citizen benefit costs, which reached €47 billion last year, the SPD—following the CDU—proposed stricter measures against those allegedly avoiding employment. SPD Parliamentary Secretary Dirk Wiese called for reforms and unequivocal sanctions against system abuse, organized fraud, and undeclared labor. He argued most beneficiaries aim to rejoin the workforce, with many requiring wage supplements due to low income, and saw this as a signal to raise the minimum wage and strengthen collective bargaining. Wiese emphasized that dignified labor deserves fair pay and supportive welfare, not punishment. Responding to public concerns that the SPD may overly support the unemployed, he reaffirmed the party’s intent to adjust its policies without fostering division.
Member of the Bundestag Tilman Kuban (CDU) stressed that basic support should be reserved for the genuinely needy, not those avoiding work. He underscored the contributions of millions to the welfare system and advocated for a fair, justice-oriented approach beyond cost-cutting.
The marked increase in Germany’s 2024 Bürgergeld expenditure — reaching 47 billion euros — had previously reignited critical discourse concerning the long-term structure and sustainability of the nation’s basic income framework. Marc Biadacz, labor policy spokesperson for the CDU, described the escalation as a “wake-up call,” intensifying the urgency for reform and prompting calls for the Federal Ministry of Labor to implement a revised welfare model. This proposed model, stipulated in the coalition agreement, seeks to enhance employment incentives, reinforce mediation measures, and impose clearer obligations for beneficiary participation.
The escalation in disbursement — 4 billion euros more than in 2023 — is partially attributable to inflation-adjusted rate increases enacted in 2023 and 2024, succeeded by a freeze in 2025. Notably, a sum of over 22 billion euros was allocated to non-German nationals. In terms of compliance, 2024 witnessed a surge in documented cases of organized benefit fraud, rising from 229 instances in 2023 to 421, with 209 resulting in formal criminal proceedings. CDU General Secretary Carsten Linnemann advocated for a prioritization of employment placement over bureaucratic procedures by the Federal Employment Agency and proposed the full withdrawal of support for individuals persistently unwilling to engage in labor. Linnemann outlined an encompassing welfare reform agenda aimed at curbing exploitative practices including fictitious rental schemes and undeclared work, as well as discontinuing the transfer of child benefit payments abroad.
Concurrently, SPD General Secretary Tim Klüssendorf defended the Bürgergeld as a reform founded upon principles of equity, targeting support toward single-parent households and low-income earners. While acknowledging sporadic instances of misuse, Klüssendorf emphasized their marginal nature and criticized portrayals that mischaracterize the program’s housing benefit provisions. He expressed concern over proposals to modify job acceptance obligations in ways that may prove impractical and inequitable.
Meanwhile, a study conducted by the employer-aligned Institute of the German Economy (IW) projects a continuation of the rate freeze into 2026, marking the second consecutive year without upward adjustment. Researcher Stefanie Seele argued that the current dual-price indexing mechanism yields delayed and disproportionately elevated adjustments in response to inflationary pressures. Findings from the Institute for Employment Research (IAB) support the assertion that existing benefit levels may exceed optimal economic thresholds.
Nevertheless, opposition to further freezes is mounting. Timon Dzienus of the Green Party condemned additional reductions as detached from the lived realities of recipients, asserting that the benefit rate should correspond to minimum subsistence standards rather than political expediency. SPD deputy Dagmar Schmidt echoed the sentiments, advocating for evidence-based evaluation before endorsing any revisions.
As approximately 5.5 million individuals remain dependent on Bürgergeld, the debate continues to be one of Germany’s most polarizing social policy matters. Thorsten Frei CDU), Chief of the Federal Chancellery, voiced confidence in the coalition’s ability to reach consensus, citing shared objectives such as restructuring the program into a more stringent basic security system designed to reduce overall beneficiary numbers.
