BÜRGERGELD UNDER CRITICISM: More sanctions and incentives! - SPD remains stubborn despite pressure!

Criticism of the Bürgergeld continues to grow. Two large economic institutes are raising the alarm and calling for reforms: While the Institute for Employment Research (IAB) is calling for more sanctions, the ifo Institute is focusing on incentives. Both institutions emphasize that changes are necessary to get more people into work.
The IAB argues that moderate sanctions could increase willingness to work. Such a measure would not only get more people into work, but would also improve the quality of employment. The ifo Institute, on the other hand, proposes increasing the allowances for overtime in order to create incentives to work. This "carrot" strategy is intended to motivate people to increase their income by working overtime.
Despite these proposals and the increasing criticism, the SPD is sticking to its course. It sees the Citizen's INCOME reform as an important success that treats people in need as equals and trusts them to reintegrate into the labor market. There are also different views within the traffic light coalition: While the finance minister is calling for a tougher approach to prevent "free riders", the coalition as a whole remains satisfied with the current system. However, a fundamental reform of the citizen's allowance could not take place until September 2025 at the earliest, when the next federal election takes place.
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