Overview

• The chancellor cited widespread misuse of transfer payments and argued that workers must end up with more net income than benefit recipients.
• Merz highlighted difficulties in integrating over five million Bürgergeld recipients into the labor market and called for stronger placement services and stricter obligations.
• Coalition partners agreed to reshape Bürgergeld into a targeted basic security for jobseekers with tougher sanctions for noncompliance.
• He expects the Labor Ministry to present detailed reform proposals for parliamentary debate after the summer recess.
• Merz warned that rising deficits in pensions, healthcare and long-term care cannot be covered by state funding alone and will demand greater societal contributions.