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German Coalition Unveils 'Grundsicherung für Arbeitssuchende' to Replace Bürgergeld

Lawmakers aim to tackle criminal exploitation of welfare benefits, reintegrating recipients into the workforce with tougher enforcement measures

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Carsten Linnemann, CDU-Generalsekretär
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Overview

  • The CDU-SPD coalition agreement calls for a new 'Grundsicherung für Arbeitssuchende' to succeed the Bürgergeld and focus on labor integration
  • CDU Generalsekretär Carsten Linnemann insists repeat refusals of suitable work should result in full benefit cuts to restore fairness
  • Labor Minister Bärbel Bas plans a crackdown on organized crime rings that exploit the system, citing over 123,000 fraud investigations in 2024
  • SPD deputy Dagmar Schmidt urges higher taxes on top earners and more targeted support to address social inequalities without overburdening vulnerable recipients
  • About 5.4 million people currently receive Bürgergeld at a cost of nearly €47 billion last year, underscoring the scope of the planned reforms