For some time now, there have been rumors that Hartz IV is set to make a comeback in Germany. Now, all speculations on this matter have been confirmed. The renaming of "Hartz IV" to "citizens' money" has already sparked controversial discussions.
Related topic: Economic downturn brings cost shock for citizens' allowance
Many argue that, apart from a few improvements, fundamental reforms have not been fully implemented. On the other hand, the CDU continues to be concerned about the label 'citizens' money.'
Why Hartz IV is being considered again
The recent renaming is just the beginning.
The CDU also plans far-reaching changes to the structure of citizens' finances. CDU Secretary-General Carsten Linnemann has repeatedly advocated for the abolition of citizens' money.
The main goals are clear: more requirements and sanctions to increase pressure on those receiving citizens' benefits.
The rapidly growing deficit in government budgets is currently driving the renewed discussion on citizens' money. Over the year, it has doubled from 32.9 billion euros to the current 76.1 billion euros.
The Federal Statistical Office cites higher standard rates of citizens' benefits as one of the reasons for the deficit. From 2024, standard rates will be adjusted by 12.2 %.
So, it's not an 'increase,' but a simple inflation adjustment to ensure a minimum standard of living.
The CDU's reform plans primarily involve strengthening the 'encourage and demand' principle.
Able-bodied individuals should be obliged to take up work. Carsten Linnemann talks about a general obligation to contribute, which may also include charitable activities.
This means that people may, for example, take on municipal tasks for a minimum standard of living. The CDU wants to be particularly stringent with young recipients of citizens' benefits. Anyone who refuses to work or undergo training should be asked to pay.
Job centers can impose "significant sanctions" if they refuse. Linnemann left open what exactly this entails. The issue is that the Federal Constitutional Court considers sanctions above 30 percent to be unconstitutional.
The CDU plans to finally abolish the name 'citizens' money'. It creates the impression that everyone is entitled to it, regardless of their financial situation. The exact name of the basic security system for job seekers is not yet determined, but the CDU indicates a desire to return to the Hartz IV system.
Related topics:
The CDU's plan to abolish the term "citizens' money" is part of their intentions to reintroduce the Hartz IV system. The rapidly increasing deficit in government budgets, which has doubled from 32.9 billion euros to 76.1 billion euros over the year, is contributing to the renewed discussion on citizens' money.
