Overview

• The agreed sanctions cascade cuts benefits by 30% after a second missed Jobcenter appointment, stops payments after a third, and can halt housing support if absence continues, with hardship exemptions for serious health issues.
• For refusing suitable job offers, the coalition plans to allow a full cut of the standard payment while having housing costs paid directly to landlords.
• Policy shifts restore the Vermittlungsvorrang to prioritize rapid placement over training in most cases and tighten asset rules by ending grace periods and linking protected savings to age and contribution history.
• Chancellor Friedrich Merz said a bill will be introduced this year and passed early next year so the law can take effect by spring 2026, alongside an ‘Aktivrente’ allowing retirees to earn €2,000 monthly tax‑free from January 1, 2026 and funding moves that include €3 billion for e‑car purchase subsidies and roughly €3 billion reallocated to highways and federal roads.
• Greens, the Left, unions and social organizations decried the measures as harsh and potentially unconstitutional under 2019 court limits, while Merz argued they comply with jurisprudence, insisted no one will be left without shelter and projected savings if more recipients return to work.