Overview

• Labour Minister Bärbel Bas said participation duties and sanctions will be sharpened, with a draft bill targeted for October and a broader reform slated for 2026.
• Federal Employment Agency chief Andrea Nahles endorsed tougher penalties but pressed for simpler, digital rules so Jobcenters can enforce obligations more effectively.
• Jobcenters recorded 102,000 misuse cases in 2024, about 40% referred to prosecutors, with 421 organized cases reported and early 2025 data indicating no letup.
• The package highlights organized fraud hotspots and includes improved data-sharing between customs and Jobcenters plus roughly €1 billion in added resources for enforcement.
• CDU leaders push for total benefit cuts, yet a 2019 court ruling and IAB findings question extreme sanctions and point policymakers toward adjusting sanction duration over severity.