Federal Finance Minister Christian Lindner (FDP) has provoked sometimes violent reactions from the SPD with calls for an “update” of citizens’ money. From the perspective of Federal Chancellor Olaf Scholz (SPD), the citizens’ money reform has proven to be “very successful,” as deputy government spokeswoman Christiane Hoffmann emphasized in Berlin. SPD parliamentary group deputy Dagmar Schmidt accused the FDP leader of leading a jealous discussion.
“Citizens’ money needs an update,” Lindner told the “Rheinische Post”. It is not an unconditional basic income. There are many adjustment screws – from the reasonableness of the work offered to sanctions and work opportunities. The citizen’s benefit contains too few incentives to take up work. “It is a contribution to social peace to correct undesirable developments here,” said the Finance Minister. “I also hear that behind closed doors from social democratic leaders. So let’s do it.”
SPD: “Easily transparent magic trick”
SPD social expert Schmidt told the German Press Agency: “It’s the same and easy-to-understand magic trick that the finance minister is performing here: playing off those who don’t have enough money against those who just have enough money to survive to make ends meet.” Since its introduction in 2015, the minimum wage has increased more than the basic income.
“This discussion of envy primarily distracts from the fact that we are not talking about how we can actually make very high incomes and assets participate more in financing the common good,” said the SPD parliamentary group vice-president. “This is all the more perfidious when Lindner strives for such big categories as respect and social peace, which he tramples on with such statements.”
“You can’t make big jumps with it”
A spokeswoman for Federal Labor Minister Hubertus Heil (SPD) replied to Lindner: “Citizens’ money ensures a humane minimum subsistence level, and you certainly cannot make any big leaps with it. It is not an unconditional basic income.”
Further training opportunities have been “greatly improved”. The ministry spokeswoman recalled the recently introduced stricter sanction options against citizens’ benefit recipients who refuse to work. “We are not planning any further changes at this time.”
Green party deputy Andreas Audretsch spoke out against further tightening. “The Federal Constitutional Court gave us a target of sanctions: up to 30 percent. And we have completely exhausted this framework,” said Audretsch in the RTL/ntv early start.
The Left federal managing director Katina Schubert said: “The Federal Finance Minister is once again acting like a demagogue and describes citizens’ money as a basic income without benefits. This is a slap in the face to the millions who are in the poverty trap.”
Lindner: The SPD and the Greens lack respect for taxpayers
Lindner had also defended himself against criticism from the SPD and the Greens about the tax relief he planned. “If social benefits are adjusted to price developments, then the same must apply to taxes for the working population,” he said. “There is no hesitation among our coalition partners in increasing citizens’ money, but the simple inflation compensation for specialists and managers as well as for medium-sized businesses is being fought.”
Lindner told “Bild” that his coalition partners lacked respect for taxpayers. It’s not just low-income earners who deserve fairness. “The performance of specialists and managers as well as medium-sized companies must also be recognized. Treating these people as mere pack mules takes away their desire to perform.”
Lindner wants to increase the basic allowance for wage and income tax retroactively to January 1, 2024. In an interview with the German Press Agency, he also promised changes to income tax for 2025 and 2026.
