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Germany Coalition Replaces Bürgergeld With Stricter Basic Security, Sets 2026 Aktivrente and Transport Boost

The package is meant to show momentum before today’s auto summit, while a common line on the EU 2035 engine phaseout remains unresolved.

Overview

  • Leaders confirmed the Bürgergeld will be replaced by a new Grundsicherung with tougher cooperation duties and stepped penalties, up to a full cut of cash benefits for repeated missed Jobcenter appointments with hardship exceptions.
  • The coalition outlined activation measures including mandatory early counseling and tighter rules on assets, with details presented by Chancellor Friedrich Merz and Labor Minister Bärbel Bas.
  • An Aktivrente begins on January 1, 2026, allowing older employees to earn up to €2,000 tax‑free per month without a progressions effect, with an evaluation planned after two years.
  • The government reaffirmed a €166 billion transport program, added about €3 billion for road projects, and earmarked €3 billion to help low‑ and middle‑income households switch to zero‑emission cars through a mobility program.
  • Interior Minister Alexander Dobrindt moved to abolish the rarely used Turbo‑Einbürgerung and return to a five‑year residence rule for naturalization, as coalition figures remained split over the EU’s 2035 combustion‑engine ban.