Radical reforms affecting aid and pensions in Germany
The new Minister of Labor and Social Affairs, Beate Bas, announced that she intends to tighten penalties in the basic social assistance system known as Grundsicherung, but she strongly rejected the idea of completely abolishing assistance.
Bass said: "Those who can work must work," emphasizing that the government will reconsider the tools of sanctions and will tighten them when necessary.
She explained that those receiving social assistance are obliged to actively participate in work and rehabilitation programs, describing it as a matter of social justice, especially for young people after completing their studies or vocational training. At the same time, she warned against demands from some political entities, such as the Union, for a complete cancellation of assistance, including housing costs, considering it unrealistic, as the minimum living standard must be guaranteed according to court decisions.
She added that the goal is to accelerate the implementation of sanctions and make them clearer, but she emphasized that she would not risk enacting reforms that social courts could reject. Bass also stressed that she would take a firm stance against those who exploit the social assistance system. She said: "Receiving Grundsicherung and working illegally at the same time is unacceptable," pointing out that the responsibility does not lie solely with the beneficiaries, but also with the companies that allow this, emphasizing that these companies must be strictly punished.
Regarding the reform of the aid system, Baas stated that the agreement between the SPD and the Union stipulates the transformation of the current Bürgergeld system into a "new basic system for job seekers," emphasizing that the basic financial support will remain in place even if its name changes.
Bass also called for the inclusion of new categories in the funding of the pension system, stating that government employees, lawmakers, and self-employed individuals should also participate in order to improve revenues. She mentioned that the pension committee, agreed upon within the bipartisan coalition, will discuss the details of this reform.
The minister also pointed out that pension contributions will rise slightly over the coming years due to demographic changes, but she rejected linking the retirement age to life expectancy, stating that this proposal is impractical due to the differing nature of jobs. She added that there are professions where people can work into old age, as is the case with the 69-year-old advisor Friedrich Merz, while there are other professions where workers are exhausted by the age of sixty.