Germany’s conservative-led government agreed Wednesday to overhaul unemployment benefits, so job seekers who break rules face tougher penalties, a hotly disputed reform that fuelled tensions in the ruling coalition.
The “citizens’ income” benefit was a key policy of the previous, centre-left-led government, but critics on the right argued it was too generous and did not do enough to encourage the unemployed into work.
After weeks of rancorous debate, Chancellor Friedrich Merz’s coalition, led by his centre-right CDU party, signed off on abolishing the former benefit system and replacing it.
It was sensitive for the centre-left SPD as the party — the CDU’s junior coalition partners — had to do a U-turn on a major piece of legislation they had introduced, and it provoked protests from their youth wing.
The draft bill from the office of the SPD’s Labour Minister Baerbel Bas insisted, however, the changes would “rebalance the relationship between support and participation, between solidarity and personal responsibility”.
Merz said the overhaul would ensure that “our welfare state remains viable for the future”.
Central to the reform is introducing tougher penalties to encourage job seekers back into work.
Those who refuse reasonable employment that could end their need for state support can lose government payments for up to two months.
Other violations, such as failing to submit job applications or dropping out of training courses, could see their monthly payments reduced by 30 percent for three months.
Repeatedly missing appointments at the job centre can result in a complete loss of benefits.
Germany’s unemployment rate has been ticking up as the economy struggles through a long downturn, with traditional manufacturers in particular shedding jobs as international competition intensifies.
Bas said Wednesday the goal of the reform was “to get people into permanent employment” but she also stressed that those who need help will still be able to “rely on the support of the state” in the future.
The changes still have to be voted through parliament.
Over five million people a month claimed “citizens’ income” in recent times, which is 563 euros ($660) for a single person. It costs the government about 50 billion euros a year.
Meanwhile, the United States has partially suspended the issuance of immigrant and non-immigrant visas to Nigeria and 14 other countries, citing concerns on radical Islamic terrorist groups such as Boko Haram and the Islamic State operating freely in certain parts of the West African country.
Specifically, the classes of visas affected include the B-1, B-2, B-1/B-2, F, M, and J Visas.
President Donald J. Trump, on Monday, signed a proclamation expanding and strengthening entry restrictions on nationals from countries with demonstrated, persistent, and severe deficiencies in screening, vetting, and information-sharing to protect the country from national security and public safety threats.
The United States also cited the Overstay Report, noting that Nigeria had a B-1/B-2 visa overstay rate of 5.56 per cent and an F, M, and J visa overstay rate of 11.90 per cent.
The Proclamation includes exceptions for lawful permanent residents, existing visa holders, certain visa categories like athletes and diplomats, and individuals whose entry serves U.S. national interests. It narrows broad family-based immigrant visa carve-outs that carry demonstrated fraud risks, while preserving case-by-case waivers.
