In the debate about the abolition of Hartz IV have the economic Christoph Schmidt and Peter Bofinger, the initiatives of the SPD and the Greens as counterproductive rejected. “The labour market reforms of the 2000s have contributed to the fact that unemployment is at its lowest level since the reunification,” said Schmidt, Chairman of the expert Council for the assessment of overall economic development (SVR), the Rheinische Post. “Now the principle of ‘promoting and demanding’ to renounce, would go mainly at the expense of the Weakest.”
the trade Union close to SVR-member Peter Bofinger was critical to a Reform of Hartz IV. He think little of a Change in the sanctions, “because we would pass without sanctions, de facto, from a conditional to an unconditional basic income”. Such a change of system would be expected to be very expensive. In addition, the Absence would not be any incentives to work for those Affected necessarily advantageous.
SPD and greens are calling for Alternatives to Hartz IV
Previously, both the SPD and the Green proposals for a Reform of the current Hartz-IV-system. SPD leader Andrea Nahles has announced in the Wake of the planned renewal process of the party: “We will not let Hartz IV behind us.” Hartz IV was to be replaced by a new base backup to work without sanctions. Also Minister of labour, Hubertus Heil (SPD), and SPD General Secretary, Lars Klingbeil have argued for a Reform of Hartz IV. Therefore, sanctions should not be abolished completely, the current sanction of principle, but needs to be aligned.
Greens leader Robert Habeck is also for the abolition of Hartz IV. In a strategy paper he has presented fundamental features of a new state guarantee system. This is to rely on incentives instead of punishment, a living wage and extra money, make it more attractive. Also it looks to raise the already wealth, and all the existence of bundles of benefits. Forced to take up work and sanctions are not provided.
The Agenda 2010, which also includes the Hartz IV laws, it was decided by the red-green coalition of the former Chancellor Gerhard Schröder (SPD). It is considered to be the largest social reform of the state in the recent past. In your unemployment and social assistance to the new basic security benefits, Hartz IV merged. The current rate is 416 Euro a month. In the course of the Hartz-IV-Reform were also tightened sanctions. This should increase the pressure to seek further training and new Jobs.