The planned Hartz IV successor has been stopped for the time being. In a special session of the Bundesrat, countries led by the Union refuse to give their consent to the citizens' income. Only hours later, the mediation committee is to begin work on a compromise. Time is running out.
The citizen money of the traffic light coalition has been stopped for the time being. In a special session of the Federal Council, the bill for the social reform did not receive the required majority. This means that the social reform planned for January 1 cannot come into force for the time being. As previously announced, several state governments led by or with the participation of the Union refused to approve the project.
The controversial Hartz IV system is to be overcome with the new citizens' allowance. The traffic light plans provide for an increase in the current standard rate from 449 euros to 502 euros for single beneficiaries. That is indisputable and is also supported by the Union. In addition, the unemployed are to be put under less pressure in the future by threatened withdrawal of benefits and sanctions, especially in the first six months of receiving citizen benefits. The traffic light wants to relax the requirements for the permitted amount of assets and the size of the apartment for benefit recipients.
On all these points, the Union has been holding up its stop sign for weeks. In the past few days, it had become increasingly clear that there should be a mediation procedure for the reform. The Bundestag passed the draft citizen allowance last Thursday with the majority of the government factions of the SPD, the Greens and the FDP. This was preceded by a heated parliamentary debate. The traffic light groups in the Bundestag had rejected a proposal by the Union to decouple the increase in the standard rates from the draft and to have them come into force separately on January 1st.