Overview

• CDU officials say a first decision on the overhaul could come in the next one to two weeks, with a coalition committee meeting scheduled for Wednesday.
• Chancellor Friedrich Merz says the Bürgergeld name will disappear as a stricter activation-focused system is introduced.
• Drafts outline tougher cooperation obligations and faster sanctions and scrap grace periods for assets and housing.
• Carsten Linnemann forecasts multi‑billion‑euro savings, including up to €1.5 billion if 100,000 beneficiaries move into work, while SPD figures call the projections unrealistic.
• Implementation is planned in stages starting in early 2026, and leaked proposals include shifting newly arriving Ukrainians after April 1, 2025 to AsylbLG benefits, drawing warnings from social groups about homelessness risks.