SPD wants to examine actual labor market effects of citizen's income decisions
The deputy SPD caucus chair Dagmar Schmidt announced an in-depth examination of the coalition leaders' decisions on citizen's income. "Compromises not made on the relevant issues must now be properly assessed - particularly in terms of their actual labor market effects," Schmidt told the AFP news agency on Sunday. "This is especially true for decisions regarding the now predominantly discussed citizen's income."
Chancellor Olaf Scholz (SPD), Finance Minister Christian Lindner (FDP), and Economics Minister Robert Habeck (Greens) made amendments to citizen's income in the course of budget negotiations. Starting from the rejection of job offers or violations of participation or reporting obligations, faster and higher reductions are threatened.
"In essence, it was held that the care should be intensified, the interests of the unemployed should be taken into account, and a focus on qualification and further education should be set for citizen's income," Schmidt continued. "This must now also be reflected in the budget - both in terms of personnel and the financing of measures. Every unemployed person who is well cared for and qualified in the first labor market and establishes a long-term foothold, saves the taxpayer money and strengthens our social safety nets."
The coalition leaders also agreed that allowances for overtime work beyond agreed full-time work would be made tax- and contribution-free for employees. In addition, premiums from employers should be subsidized if employees extend their working hours. "Arbeasd incentives for overtime and flexible working hours must be thoroughly reviewed," Schmidt said. "Unlimited working hours for one parent, for example, should not lead the other parent to then reduce their working hours."
The SPD-led Federal Labor Ministry remained tight-lipped over the weekend regarding the implementation of these agreements. "The concrete implementation of the decisions from July 5th is still to be awaited," was all that was stated from Minister Hubertus Heil's (SPD) department.
Schmidt's examination of the coalition leaders' decisions on citizen's income is crucial in evaluating its impact on the German labor market. The intensified care, consideration of unemployed interests, and focus on qualification for citizen's income could significantly affect labor market dynamics.
Schmidt's concerns extend beyond just citizen's income, as she also emphasized the need for a thorough review of the coalition leaders' agreements on workplace incentives and flexible working hours to ensure fair distribution of labor market effects.
