In Germany, where the economy is slowing down, the “autumn of reforms” desired by Chancellor Friedrich Merz was officially launched. After weeks of negotiations, members of the ruling coalition agreed last Wednesday to toughen the conditions for the payment of unemployment benefits, which should come into force next year.
Specifically, beneficiaries of the subsidy renamed “basic insurance” instead of “citizen subsidy” will be sanctioned more severely if they miss their appointments at an employment office, the equivalent of France Travail agencies.
The beneficiary who does not show up for a first appointment will be immediately summoned for a second interview. If he misses out too, he will see his allowance reduced by 30%, down from 10% so far. Failure to attend a third appointment will result in suspension of the subsidy. Finally, new absences will also lead to the elimination of housing assistance, Spiegel reports.
“Those who do not cooperate at all (…) do not need state help”
“In Germany no one will be left homeless. Anyone who needs an apartment or a roof will find it. But those who do not cooperate at all, who do not even register at the employment office, we must assume that they do not need help from the state, from the welfare state,” argued Friedrich Merz.
Currently, 5.5 million people benefit from the basic subsidy, which amounts to 563 euros per person. The Rhine-wide unemployment rate has remained stable since March at 6.3%, but has increased regularly since 2022.
The Federal Employment Agency highlighted in particular the absence of “the necessary impulses for a stronger recovery” of the economy, which means that “the chances of getting out of unemployment by finding a job are at a historically low level.” In the midst of the crisis, the industrial sector is especially affected. According to the firm EY, 250,000 industrial jobs have disappeared since 2019.
Source: BFM TV
