Cuts in welfare and later retirement: Germany’s liberals have formulated demands that have angered the Social Democrats. Is this the beginning of the disintegration of the ruling coalition?
The German Liberals (FDP) insist on further tightening of social assistance for the unemployed and want to abolish the possibility of retirement at the age of 63. In the document adopted by the presidency of that party and which will be presented at the congress of that party this coming weekend, it is requested to reduce the compensation (which in Germany is called “citizen’s income” or “Bürgergeld”) by 30 percent to those who refuse work without a valid reason.
“Those who do not fulfill their obligations regarding the ‘citizen’s income’ and, for example, refuse an acceptable job without an important reason, should have their compensation reduced by 30 percent,” the document states. It is also foreseen that the punishment will be toughened – “up to the complete abolition of the fee”.
Until now, there have been phases to reduce fees
Current regulations in Germany stipulate that employment offices can reduce the compensation by a maximum of 10 percent during one month to those who violate the obligation to accept the offered, suitable job for the first time. After that, there is a possibility of a reduction of 20 percent, and finally up to 30 percent. The law on “citizen’s income” came into force on January 1 last year.
Originally, milder punishments were foreseen, the idea was to rely more on cooperation and less on pressure through punishment. Recently, however, strictures have been adopted: since March, the Employment Bureaus can completely cancel the “civil income” of the unemployed, but for a maximum of two months – if the recipients prove to be “those who refuse to cooperate completely”.
FDP: pension at 63 is no longer sustainable
The liberals did not only target the recipients of unemployment benefits. The party wants to abolish the current possibility of retirement at the age of 63, if a person has 45 years of service. Germany, they claim, can no longer afford it due to the lack of experts. Instead, the Liberals are pushing to make working in retirement more attractive.
The document also states that renewable energy sources should “finally be fully included in the market”, that is, that the state should no longer subsidize them. The current contribution of citizens to the consumption of electricity, the so-called The EEG, which finances the construction of renewable energy sources, should be reduced and phased out. This, they believe, should make energy in Germany cheaper.
In the document, the FDP also confirms its opposition to both German and EU supply chain law: German regulations should be suspended, and when implementing the EU supply chain directive, “every opportunity should be used to prevent unjustified and unenforceable burdens on the economy”. The German “Act on Due Diligence in the Supply Chain” has been in force for a year, and according to it, German companies must also take into account how their suppliers, both in the country and abroad, treat workers’ rights and environmental protection.
The Social Democrats clearly reject the plans of the liberals
“The proposals of the FDP are a relic of the past and do not correspond to modern requirements”, says the head of the parliamentary group of the Social Democrats (SPD) in the Bundestag, Rolf Micenih. “These proposals have nothing to do with the economy, they are an additional burden for employees. “We will not undertake anything that would endanger workers and violate the basic social values written in the Constitution,” Micenih emphasized.
Reacting to Mitzenich’s statements, Liberal Vice President Johannes Vogel warns that the “current weakness of the German economy” also threatens a strong welfare state. “The common interest of all coalition partners should be the realization of an economic turnaround,” Fogel said and reiterated that this implies a reduction in citizens’ taxes, as well as “fairness” when receiving social assistance.
And SPD General Secretary Kevin Kinnert strongly rejects the proposals of the coalition partner. “The SPD will not allow our country to be run by investment bankers.” The basis of the coalition remains the coalition agreement,” said the social democratic politician.
The leader of the ruling Greens, Omid Nuripour, reacted calmly to the ideas of the coalition partners, the Liberals: “We are working on solutions that we agree on and we are trying to move the country forward,” he said. “The fact that we have different views is nothing particularly new,” explained the co-president of the Greens and added that the work of the coalition will not be stopped. “The coalition agreement is valid. The coalition has achieved a lot together and there is much more to be done.”
“Liberals astray”
However, SPD head Lars Klingbeil is harsh: “We will not allow politics to be run at the expense of those who work hard and keep the country moving.” Anyone who has worked for our country for 45 years in a hospital, kindergarten or on a construction site is entitled to a pension without deductions. That remains,” Klingbeil said.
“It is true that something must be done to stimulate the economy, to secure existing jobs and create new ones.” We are jointly responsible for that in the government. But, if the FDP believes that the economy will be better if it is worse for artisans, nurses or teachers, then it is grossly mistaken,” added Klingbeil.
The president of the opposition Left, Martin Shirdevan, also criticized the FDP, saying that what they want to adopt is a “document of social cruelty”. And if the SPD and the Greens give in to the Liberals again, “they are politically finished,” he believes.
The Christian Democrats rejoice – and offer the Liberals a coalition
The head of the Bavarian Christian Democrats (CSU), Markus Zeder, assessed that the document adopted by the Liberals was a “request for the divorce of the traffic light coalition”. According to his opinion, this is an indication that the coalition has come to an end.
And the General Secretary of the Christian Democratic Union (CDU) Karsten Linemann says: “The FDP must be honest – either it leaves the coalition, or it imposes the implementation of some necessary measures.” There are several items that could be implemented quickly if a coalition of Christian Democrats and Liberals were in power.”
And not only the Christian Democratic opposition thinks that the Liberal document is a kind of “request for divorce”. And the deputy of the ruling SPD in the Bundestag, Helge Lind, otherwise their expert on social issues, said in a statement to the tabloid “Bill”: “If the FDP is serious about it – that is, if it plans to implement it immediately – then it is a document that needs to be read as a statement about leaving the coalition.”
A small number of those who “refuse to work”
Statistics show, however, that the issue of those who receive midnight and refuse to accept a job is not in fact an economically relevant problem – but a worldview and ideological positioning, in this case the Liberals.
Namely, from February to December 2023, the Federal Bureau of Employment recorded only 15,774 cases of reduction of benefits due to job refusal – out of a total of 5.5 million who receive benefits as unemployed. Of that number, 3.9 million are considered able to work.
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