Financial expert criticizes proposed law for 100% sanctions on citizens' money

Financial expert criticizes proposed law for 100% sanctions on citizens' money

According to a report by www.gegen-hartz.de,

The Federal Labor Minister's legislative proposal, which provides for 100% sanctions for citizens' benefits, has met with criticism from the Tacheles e.V. association for the unemployed. The planned sanctions to completely abolish the standard benefit for refusing to work are rejected as inappropriate and unconstitutional. Tacheles points out that the targeted budget savings are extremely questionable and that the sanctions necessary to achieve the savings volume would not be feasible in practice.

The planned change in the law carries the risk of legal uncertainty and arbitrariness from the authorities. It circumvents constitutional norms in subsistence law and shows a lack of regulations to secure the subsistence level. The tightening of sanctions is also seen as counterproductive for the integration of the unemployed into the labor market and contributes to social polarization.

In view of these concerns, the Tacheles association is calling for the planned sanctions to be canceled without replacement as a contribution to budget consolidation. The job centers also express criticism and do not see full sanctions as a suitable means of integrating benefit recipients into the labor market.

The planned change in the law is not only encountering resistance from the unemployed associations, but also from the job centers. The lack of reliable studies on the effects of sanctions and the lack of evidence influence the seriousness and feasibility of the proposed law. This could lead to uncertainty in the labor market and in the financial sector.