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Government Finalizes Major Bürgergeld Reform With Tighter Sanctions and Budget Cuts

New asset safeguards alongside revived job-placement priority will secure €4.5 billion in savings by 2027

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Overview

  • The reform will rename Bürgergeld to Grundsicherung, reintroduce Vermittlungsvorrang and abolish the first-year asset exemption
  • Lawmakers aim to achieve €1.5 billion in savings for 2026 and €3 billion for 2027 through stricter eligibility and full sanctions for repeated work refusal
  • An Infratest-dimap poll finds half of Germans back current sanctions, a third support harsher penalties and the public is nearly evenly split on prioritizing swift job placement or qualification
  • Critics and recent IAB, DIW and Sanktionsfrei studies warn that the €563 standard rate for singles falls short, causing material deprivation and undermining long-term reintegration
  • RTL Zwei documentaries have exposed extreme cases of debt, fraud and career breaks, leading experts to urge targeted cuts for total refusal while warning against broad punitive measures