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German Government Faces Backlash Over Proposed Bonus for Long-Term Unemployed

The proposed 1,000 Euro incentive for long-term unemployed returning to work has sparked debate among German political parties and economists.

  • The German cabinet's proposal to offer a 1,000 Euro bonus to long-term unemployed individuals who maintain employment for over a year is facing criticism from various political factions.
  • Economist Marcel Fratzscher argues that while the bonus could encourage employment, it is unlikely to pass due to political opposition and societal attitudes towards welfare.
  • The SPD and Green Party are at odds over the proposal, with SPD figures blaming Green leader Robert Habeck for the initiative, despite it being a cabinet-wide decision.
  • Critics argue that the bonus may not be necessary as many recipients would return to work without it, and it could be seen as rewarding normal behavior.
  • Supporters of the initiative believe it could help reduce unemployment and social welfare costs, but acknowledge the challenge of overcoming public and political resistance.
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