Overview

• Germany’s Labor Ministry said the legally prescribed update mechanism yields no change to Bürgergeld on January 1, 2026, keeping the single adult rate at €563 for roughly 5.5 million recipients.
• Labor Minister Bärbel Bas plans tougher enforcement, including sharper cuts for missed appointments, and a cabinet vote on her ordinance is reportedly slated for September 10.
• Chancellor Friedrich Merz renewed calls for deep social-system reductions, arguing the current model is unaffordable, drawing sharp rebukes from SPD figures and social groups.
• Coalition leaders target an autumn package spanning basic income, pensions, health and long-term care, as a government commission begins work to present reform options by year’s end.
• Economic advisers and the Economics Ministry warn that combined social contributions could drift toward 50 percent, underscoring fiscal strain and competitiveness risks.