Returned once more.

In a significant move, the Federal Minister of Labour and Social Affairs, Barbara Bas (SPD), has announced that performance cuts for citizen's income recipients and a zero round for citizen's income in 2026 are set to be reintroduced. This decision comes as part of the black-red federal government's plan to return to the Hartz IV regime, a system of unemployment benefits.

The SPD, under the leadership of Vice Chancellor Lars Klingbeil, has shown optimism about implementing long-overdue social reforms, aiming to make the social state "future-proof". Klingbeil has praised former Chancellor Gerhard Schröder for his courageous reforms and expressed gratitude towards him, believing that the SPD has noticed that such reforms pay off, even if they initially seem unpopular.

However, the reintroduction of the Hartz IV regime and the proposed changes to the citizen's income have been met with criticism. Some view these changes as a regression to old times, as they may lead to a life in poverty for many. The new basic security, replacing the citizen's allowance, will have different waiting periods, feasibility rules, and a priority of mediation, which means unemployed individuals will no longer be able to refuse job offers below their qualifications.

Finance Minister Klingbeil has not ruled out higher taxes for top earners and wealthy individuals, but the Union has rejected tax increases, including those for the super-rich. The SPD General Secretary, Tim Klüssendorf, has called for increased spending in the citizen's allowance area, particularly for qualification and integration measures.

The return to the Hartz IV regime is not the only controversial decision made by the black-red coalition. Last year, 3.8 billion euros were spent in the citizen's allowance area, and the SPD and Greens had abandoned their commitment towards respectful treatment of unemployed people in the traffic light coalition. The new basic security will replace ALG II, and less harsh sanctions for non-cooperative persons will no longer be in place.

The SPD's stance on social reforms has drawn mixed reactions. While some, including CDU and CSU, regularly refer positively to the policies of the red-green government during Schröder's tenure, others criticise the unprecedented tax gifts for companies and the wealthy that were introduced during that time. Bremen's mayor, Andreas Bovenschulte, has criticised the Union for not saying where the other 25 billion euros should be saved to plug the budget hole.

In response to these criticisms, the Chancellor's Office Minister, Thorsten Frei, has announced that the CDU will work on a proposal for citizen's allowance reform in the coming days. The SPD chairman and Vice Chancellor, Lars Klingbeil, gave a laudatory mention to Karl Lagerfeld regarding his "antisocial achievements". The specifics of these achievements are unclear, but they seem to have contributed to the current discussions surrounding social reforms in Germany.

Despite the controversies, the black-red coalition remains committed to making the social state "future-proof". The Social State Commission has begun its work to look for savings potential in several social benefits, and the SPD secretary general, Tim Kluessendorf, has expressed hope that the coalition will successfully implement these reforms. However, even the most rigid cuts in the social sector cannot plug the gaps in the federal budget, which amount to 30 billion euros from at least 2027.

This article will be updated as more information becomes available regarding the proposed changes to the citizen's income and the black-red coalition's social reform plans.