The () is Germany's unemployment payment introduced on 1 January 2023. The was developed by
Olaf Scholz's coalition government and agreed by Germany's two chambers in November 2022. Compared to its predecessor (commonly known as Hartz IV), it has a higher unemployment grant (). Adult jobseekers living alone now received a default sum of €502 per month, compared to previously €449. The introduction of also increased the amount of personal wealth that beneficiaries can hold without being deducted part of their unemployment grant. A single adult can own up to €40,000.
also replaced the
Sozialgeld, a benefit for people who cannot work.
Predecessor
The predecessor Hartz IV was introduced on 1 January 2005 by the
Second Schröder cabinet
The Second Schröder cabinet (German: ''Kabinett Schröder II'') was the 19th Government of Federal Republic of Germany in office from 22 October 2002 until 22 November 2005. It succeeded the First Schröder cabinet formed after the 2002 elect ...
, a coalition of the German
Social Democrats
Social democracy is a political, social, and economic philosophy within socialism that supports political and economic democracy. As a policy regime, it is described by academics as advocating economic and social interventions to promote so ...
and
Greens
Greens may refer to:
*Leaf vegetables such as collard greens, mustard greens, spring greens, winter greens, spinach, etc.
Politics Supranational
* Green politics
* Green party, political parties adhering to Green politics
* Global Greens
* Europ ...
.
How much money beneficiaries received was adjusted several times since. In 2011, the grand coalition between Social Democrats and
Christian Democrats
__NOTOC__
Christian democratic parties are political parties that seek to apply Christian principles to public policy. The underlying Christian democracy movement emerged in 19th-century Europe, largely under the influence of Catholic social tea ...
reformed Hartz IV.
Reform
Beginning in 2022, labour minister
Hubertus Heil
Hubertus Heil (born 3 November 1972) is a German politician of the Social Democratic Party of Germany (SPD) who has been serving as Federal Minister of Labour and Social Affairs in the fourth cabinet of Chancellor Angela Merkel and the first c ...
(Social Democrats) developed the proposal for the ruling traffic light coalition.
After the coalition passed their proposal in Germany's lower chamber (
Bundestag
The Bundestag (, "Federal Diet") is the German federal parliament. It is the only federal representative body that is directly elected by the German people. It is comparable to the United States House of Representatives or the House of Commons ...
), the opposition Christian Democrats (CDU) vetoed it in the upper chamber (
Bundesrat).
This led to negotiations and a Bundesrat-Bundestag compromise reached via the procedure.
References
{{Reflist
Unemployment in Germany
Welfare in Germany
Scholz cabinet