Overview
- The new Grundsicherung replaced Bürgergeld on July 1 and imposes tougher job‑search duties and faster, harsher sanctions for missed Jobcenter appointments, prompting protests and legal challenges.
- Parliament approved a health‑insurance stabilisation law in mid‑July that aims to close a multi‑billion euro gap by raising co‑payments, capping some therapy budgets and shifting costs toward contributors, drawing sharp criticism from doctors, insurers and opposition politicians.
- The coalition has politically agreed to tie the statutory retirement age to life expectancy and to add funded elements, but no bill exists yet and formal legislative work cannot begin before 2027 with first effects planned years later.
- A June IW study using DRV data shows a rising share of early retirees who continue to earn substantial wages while drawing pensions, a trend that reduces the coherence of incentives and increases pressure on pension finances.
- Public debate is intense: ministers defended the package on television, social groups and unions lodged fierce objections, and Bundestag, Bundesrat and court reviews are likely to change or block key proposals during the law‑making process.