[Introducing the Citizen's Income (Bürgergeld): Making Bold Changes]

Area of Science:

• Socioeconomics
• Public Policy
• Labor Economics

Context:

• The German federal government is proposing a significant overhaul of its social welfare system.
• The current unemployment benefit II (Arbeitslosengeld II) is set to be replaced by a new citizen's income (Bürgergeld).
• This reform is a key initiative within the new government's coalition agreement.

Purpose:

• To analyze the proposed changes associated with the introduction of Bürgergeld.
• To evaluate the potential impact of the reform on long-term unemployment and social participation.
• To examine the shift from a 'Fördern und Fordern' (support and claim) approach to a more supportive policy focus.

Summary:

• The proposed citizen's income (Bürgergeld) aims to replace the existing unemployment benefit II (Arbeitslosengeld II).
• Key reforms include a readjustment of the 'Fördern und Fordern' approach, prioritizing supportive measures like training for the long-term unemployed.
• The reform also seeks to enhance in-work benefits to promote sustainable, socially insured employment and ensure genuine social participation for recipients.

Impact:

• Potential for reduced long-term unemployment through increased focus on training and supportive measures.
• Expected improvement in sustainable employment rates via reformed in-work benefits.
• Anticipated enhancement of social inclusion and participation for individuals receiving citizen's income.