ifo Researcher Peichl Praises New German Coalition Leaders for Reform of Social Benefits
The ifo researcher Andreas Peichl believes that setting up a commission to reform German social benefits is a good idea. This proposal is included in the new coalition agreement. “This is a step in the right direction,” Peichl said in Munich on Wednesday. “The current confusion over the rules and on the part of the authorities means that for some workers, a higher gross salary means lower take-home pay. This has to stop.”
In recent years, the ifo Institute has proposed several reforms. The coalition partners want to launch a reform that harmonizes and, where possible, combines the basic income (formerly Arbeitslosengeld II), housing benefit, and other tax-financed social benefits. This is intended to bring more people into employment and also to allow those groups that to date have not been employed to participate in the labor market. Opportunities for additional earnings are also to be improved. The aim is to prevent employees from receiving less net pay when they earn more gross.
