Germany's 'Autumn of Reforms' Extended to Tackle Social Insurance Issues
The coalition's 'Autumn of Reforms' is set to extend beyond its initial timeline, with the first law expected 'very soon'. This law will introduce a new balance security to replace the citizen's income.
The reform process is now anticipated to last a year or more, as two commissions have started to work on 'real reforms'. Economists are pushing for structural changes to address high contribution rates, demographic shifts, and inefficiencies in the news system. Social security expert Nicolas Ziebarth believes these reforms could make Germany's location more attractive and prevent unchecked rises in social contributions.
The new balance security will have stricter rules than the current citizen's income, aiming to combat abuse and ensure 'more justice'. SPD leader Barbel Bas is negotiating the reform with CDU Chancellor Friedrich Merz and other black-red top politicians. The Ifo Institute has criticized the lack of coordination between certain benefits, which can lead to decreased net income with increased work.
The coalition's 'Autumn of Reforms' is being prolonged to tackle core problems in social insurance. The first law, introducing a new balance security, is expected soon. Negotiations are ongoing to ensure stricter rules and more justice in the system.
