The Germans are turning off the tap on social welfare. “Benefits completely withdrawn”

After negotiations lasting until late at night, the German government coalition of the Christian Democrats (CDU/CSU) and the Social Democrats (SPD) reached an agreement on the controversial issues on Thursday. The controversial citizen's allowance will be replaced by a benefit focused on job placement, the website of the weekly “Der Spiegel” reported.

In the future, people eligible for benefits will be invited to a mandatory counseling interview when submitting their application. Based on the cooperation plan specifying rights and obligations, job placement activities are to become more intensive and binding, “Spiegel” learned, which obtained access to the coalition's documents.

In this way they will also be tightened sanctions for breaches of obligations. People who repeatedly do not show up for meetings at the employment office, they have to take into account that their benefits will be reduced by up to 30%.. In case of further violations, benefits may be withdrawn completely. However, exceptions are provided, e.g. for health reasons.

The long-term unemployed will be provided with closer support and classified according to the degree of readiness to take up work. Young people under 30 are to be more strongly encouraged to participate in training and activities to improve their qualifications – we read on the “Spiegel” website.

The coalition also reached an agreement on the so-called active retirement. As announced by Chancellor Friedrich Merz, this is the solution will allow people of retirement age to earn up to EUR 2,000 per month without taxesThe government is to adopt the project next Wednesday, and the new regulations will enter into force on January 1, 2026, the dpa news agency reported.

A new program to support the purchase of electric cars was also agreed. It will mainly target low- and middle-income households to facilitate the transition to climate-neutral mobility and the use of zero-emission vehicles.

The coalition partners have not yet reached an agreement on the final phasing out of sales of new cars with combustion engines in the EU from 2035. The Christian Democrats, led by Chancellor Merz, oppose this deadline, while the SPD remains supportive of this plan.

The talks between the leaders of the CDU/CSU and SPD lasted about eight hours and ended late at night. The agreement covers several points, the so-called autumn of reforms announced by Merz. The Chancellor previously emphasized that Germany must prepare for profound changes, including: in the welfare state system.

Pressure is increasing on the government coalition due to growing support for the right-wing populist Alternative for Germany (AfD). According to a survey by the INSA institute, published on Monday, the AfD obtained 26.5 percent. support, ahead of the Christian Democrats – 24.5 percent. and SPD – 14.5 percent

From Berlin Iwona Weidmann (PAP)

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