Overview

• Chancellor Friedrich Merz said he expects the overhaul to be approved this year, making the remarks at the Rheinische Post's Ständehaus-Treff in Düsseldorf.
• Labor Minister Bärbel Bas told Jobcenter leaders the system will be refocused on placement and participation with more binding obligations and tougher sanctions.
• Reports based on government sources outline sharper cuts for missed appointments and up to 30% reductions for repeated refusal of suitable work, with payments halted for people who cannot be reached.
• Further reported options include smaller asset allowances and faster moves out of housing deemed too expensive, while changes affecting EU migrants remain disputed.
• Bas said she aims to present proposals within two weeks and seek a political agreement in October after weeks of talks with coalition figures including Carsten Linnemann and Dagmar Schmidt.