Habeck justifies the 1,000 euro incentive
To encourage long-term jobless individuals, the government has proposed offering a 1000-euro incentive following a year of employment. However, this plan has sparked significant backlash, with Economy Minister Habeck strongly defending his stance.
Habeck advocates for the "booster funding" program, designed to support long-term unemployed individuals who secure employment, despite resistance from within the coalition. He views it as a practical and sensible initiative that benefits both individuals and societal structures, as well as boosting the national economy.
Habeck notes that the idea originates from labor research and received collective approval from coalition partners and the cabinet. He questioned the need for coalition members to withdraw from joint agreements in response to critique.
Recently, the government introduced stricter unemployment benefit regulations. Job refusers will face increased penalties in the future. The "booster funding" initiative is also included in these reforms. Long-term unemployed individuals who secure full-time employment within a socially-insured position after twelve months may be eligible for a one-time 1000-euro payment, with the policy set to take effect on January 1, 2025.
Within the coalition itself, criticism abounds
The SPD's social policies representative, Martin Rosemann, advocates for halting the "booster funding." Following criticism from all coalition factions, Rosemann told "Bild": "The booster funding was a specific request from Robert Habeck. As an SPD labor policy expert, we share concerns about the Ministry of Labor's constant apprehensions."
CSU General Secretary Martin Huber dismisses the 1000-euro incentive as a "mockery for those who have been working for years." The coalition risks causing social unrest and fueling existing tensions, Huber remarked to "Bild." Similarly, the CDU's labor wing criticized the initiative: "This undoubtedly disappoints anyone who works five or six days a week and still finds it challenging to meet their financial obligations with their pay," said the CDA chairman, Dennis Radtke, in an interview with Funke media group newspapers.
Another skeptical voice came from the FDP. Budget policy spokesman Frank Schäffler commented: "This project is nonsensical. Expenditures are already skyrocketing. The incentive must be abolished in the Bundestag." Even within his own party, Habeck encounters resistance: The Green labor policy expert Frank Bsirske does not deem the incentive necessary. He further told "Bild": "Most individuals on unemployment benefits will take a job if given the chance."
Unemployment within the coalition has led to significant criticism, with SPD's social policies representative Martin Rosemann advocating to halt the "booster funding" initiative. Critics, including CSU General Secretary Martin Huber, view the 1000-euro incentive as a "mockery for those who have been working for years," which could potentially cause social unrest.
