Social Gathering Negatively Impacts Lindner's Financial Strategies for Saving, Utilizing Public Funds
Finance Minister Christian Lindner, from the Free Democratic Party (FDP), wants to revise the fundamental structure of the citizen's basic income and implement a flat rate for essential living expenses. He also sees potential savings in the housing expenses of Ukrainians. The German Social Association (SoVD), led by Michaela Engelmeier, sees this as a "strengthening of penalties with savings threats," and warns of severe repercussions.
Engelmeier predicts "severe consequences" in light of Lindner's proposition to examine potential savings opportunities in the housing costs for basic income recipients. "Even Minister Lindner should be aware: The savings potential among the most impoverished is already minimal, as their housing costs are already subject to reasonableness checks," Engelmeier said to the German newspapers affiliated with the Editorial Network (RND).
She explained that a flat rate for housing and heating expenses would carry "severe consequences" - many basic income recipients would risk losing their homes because the flat rate in their region fails to cover local rents. "Categorizing all basic income recipients similarly only results in further stigmatization," Engelmeier added.
Instead, Engelmeier advocated for " reasonable aid options instead of hollow criticism and harsh, blanket penalty increments with savings threats." She urged Lindner to "finally focus on tax exemptions for the ultra-wealthy in the pursuit of a sustainable budget consolidation," Engelmeier suggested.
Lindner stirred controversy on Wednesday with his proposal to fundamentally adjust the basic income and terminate it for Ukrainian refugees. According to reports on Wednesday, Lindner suggested that a new legal status outside the basic income should be considered for refugees from Ukraine.
Furthermore, Lindner proposes introducing a flat rate for housing expenses for all basic income recipients. "Then, the benefit recipients can choose a smaller apartment and decide on heating methods," said Lindner. "I believe that we can save billions of euros in this fashion." Currently, the job center covering accommodation and heating costs "at a suitable level."
I'm not going to sugarcoat it, Engelmeier's concerns about the potential loss of homes for basic income recipients due to a flat rate for housing expenses are valid. Even Lindner himself should acknowledge that the savings potential among the most impoverished is already limited.
