After the no in the Federal Council: the price of citizen money is rising

Friedrich Merz will have noted the result of the vote with satisfaction: the Union has followed his line in all federal states in which it is co-governing and has said no to citizens’ income in the Bundesrat. Now the mediation committee has to do it.

Minister of Labor Hubertus Heil (SPD) calls for hurry for the further proceedings. A compromise should be reached early next week, and the Federal Council should make a decision again at the end of next week. In view of the major differences in content, the schedule is extremely ambitious. If it cannot be complied with, it would not be the sole fault of the Union. After all, deadlines and procedures are fundamentally the responsibility of the governing coalition – and they cannot expect all parties to say yes and amen to everything because time is short.

The minister went all out

The Union wanted to increase the standard rates within the previous Hartz IV system in January and discuss the rest of the reform without time pressure. Heil rejected this suggestion. He wants the big package, and he would have massively worsened his negotiating position by splitting it up: Then his coalition would have had wishes and concerns, and the Union would have been able to let the traffic light parties drain away.

He thinks nothing of the plans in their previous form: CDU party leader Friedrich Merz.
© Photo: Karl-Josef Hildenbrand/dpa

Instead, the minister went all out. This means that all parties are now jointly responsible. The Union will not be able to rest on the laurels of the unity within its own ranks. All relevant parties avowedly want the standard rates to rise. If they don’t manage to agree on it as part of an overall package, everyone would be embarrassed.

In terms of content, it is not as if there is only one line in the Union. The sympathies of the state ministers for the citizen’s income are unequally distributed, and depending on the coalition structure, some federal states will be more difficult, some easier to win over to a compromise. Now everyone talks to everyone.

There is air in the draft law that has been presented so far. The protective assets can be set a little lower, the sanction options can be sharpened. However, the Union’s uneasiness with these points is a fundamental one, and it is therefore quite questionable whether turning the screws purely in terms of numbers will be sufficient in the search for a compromise.

The desire of the traffic light coalition to bring the basic income across the finish line is immense. The union knows that. Accordingly, she has a good opportunity to have her consent bought off at a high price – and to change the citizen’s income substantially.

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Source: Tagesspiegel

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