While in Italy the Meloni government dismantle the Basic incomein Germany on November 25th the legislative process that marks the entry into force of its German version, the Burgergeld. The reform is about almost 5 million people and it will also affect the work of the approx 75 thousand employees of the 405 employment agencies. The government had to compromise with the opposition’s Cdu/Csu to overcome the blockage in the second chamber of the Bundesratbut Wednesday night cashed in the green light to the project. The reform will replace the system Hartz IVlaunched eighteen years ago under the chancellorship of Gerhard Schröder. Attention will now be shifted more decisively to the support for the unemployed and to theirs training towards jobs stable. A necessity, in the face of the new demands of labor qualified, and to ensure generational renewal and the pension system. The guaranteed minimum income will be raised by 53 euros per monthfor an adult without children looking for work it will go from the current 449 euros to 502 euros. For adults up to the age of 25 who are still living with their parents it will increase to 402 euros per month. For teenagers between 14 and 18 years a 420 eurosfor children aged 6 to 14 a 348 euros.
The original project of the Minister of Labour, Hubertus Heil (SPD), intended to guarantee a confidence period of six months to the unemployed, within which any shortcomings could not cost one reduction of the monthly allowance. However, the oppositions wanted a greater balance between support and commitment to get out of unemployment. The semester of tolerance has therefore been canceled and they can start immediately sanctions in case of violations. If the receiver will refuse a use that the Employment Office considers reasonablebenefits may be cut by 10%. For subsequent violations in the same year, still of the 20 And 30%. No further, for the ceiling decided by the Constitution Court in 2019, which censured reductions of up to 60% to the second annual violation.
Also compromised in the amount of individual assets which is not considered for the purpose of recognizing the right to subsidies. Heil envisioned a roof of 60 thousand euros, plus 30,000 for each cohabitant. Now, however, a ceiling of 40 thousand euros plus 15 thousand for each cohabitant. The period in which individual savings were not counted was also cut in half, from two years of the initial project to just one. Therefore the recipient after a year could be forced to move house if the Employment Agency deems that he employs one too big.
What does the reform foresee?
Stay though the heart of the reform: unlike the Hartz-IV system, it aims to promote research of a long-term occupation and not the quick start to a fixed-term job. For this reason, the ceilings envisaged remain 150 euros for the achievement of one post-graduate specialization75 euros a month for training courses and you can recover a professional diploma in three years instead of just two. Another point remains, as planned in the original bill: who earns between the 520 and the 1000 euros has the 30% tax-exempt (and not just 20% as in Hartz-IV). For people under 25, between the end of school and the start of job training, the exemption for a quarter is 520 euros a month, and likewise for the period of voluntary civil service.
THE Job Center they will have to ensure between now and the end of the year that from 1 January 2023 all the beneficiaries get raises. However, the most qualifying part of the reform will actually take effect from July 1stwhen employment offices will always have to offer close assistance And targeted to the long-term unemployed, identifying which training courses they should undertake to find a job. An approach no longer directed at merely procuring them any occupation, giving life to a circle vicious from one completed job to another.
For this reason, even if it had to swallow the toad of important cuts to the original project, the SPD is celebrating the launch of what it indicates to be the major social reform for several years. And also i greens stress that prioritizing professional development over looking for any job is a big step forward. For the Linke instead it’s nothing more than a revamped Hartz-IV, the raises too low and not poverty-proof. Their expectations for the Bürgergeld were higher: 1,200 euros for everyone. Same tones from the child protection associationArkthe increases ultimately only cover inflation. The more positive instead Caritas: it’s good that he found himself a compromise, with price increases, earners needed increases. On the other side reiner Holznagelhead of the Association of Taxpayers (Bund der Steuerzahler) criticizes from the pages of Rheinischen Post a system that will be more expensive.