Overview

• The Union–SPD coalition plans to rebrand Bürgergeld as Grundsicherung with staged penalties up to full benefit suspension and potential loss of housing payments for repeated missed job-centre appointments.
• The package includes anti-fraud measures such as greater data sharing and targeted action against abusive landlords, plus a return to Vermittlungsvorrang that prioritizes job placement over training.
• DGB leader Yasmin Fahimi calls the focus on alleged misuse a marginal issue and warns unions could respond with strikes in response to what she labels a misguided policy agenda.
• Verdi and IG Metall leaders argue the tougher regime punishes many for the actions of a very small group, while SPD voices including the Jusos raise constitutional concerns about full sanctions and rent cuts.
• Economic institutes and officials downplay fiscal gains, with the IW and the labor minister saying short-term savings will be small as the government readies a bill this year for implementation targeted by spring 2026.