Overview

• The Merz government plans to replace Bürgergeld with a Neue Grundsicherung by the end of 2025, with an initial package this year and a second phase next year tied to the social-state reform commission.
• Forthcoming changes are expected to tighten sanctions for missed jobcenter appointments or repeated job refusals, while keeping certain protections such as child‑rearing unreasonableness rules and some co‑payment exemptions.
• Labor Minister Bärbel Bas says her dispute with the chancellor is settled and she anticipates a balanced draft after close coordination.
• CSU leader Markus Söder urges larger savings focused on Bürgergeld, opposes further hikes in statutory health contributions, defends expanding the Mütterrente, and aims to cut about 10,000 Bavarian civil‑service posts by 2040.
• Health Minister Nina Warken is preparing proposals to stabilize statutory insurance as the 2025 budget raises health spending, with limited fiscal room and concerns about potential contribution increases in 2026.