Swift Financial Reform for the Affluent: A Speedy Money Revamp for Prosperous Citizens - Swift Wealth Reform of Public Finances
In a recent discussion held in Dresden, Germany, Federal Minister of Economics Katherina Reiche (CDU) and Saxony's Minister-President Michael Kretschmer (CDU) emphasised the need for a reform of the citizen's income system. This reform aims to ensure that work always pays more than welfare, encouraging individuals capable of working, including Ukrainian refugees, to join the labor market.
Reiche insists that the system must incentivise work by providing financial benefits to those who are employed. She proposed urgent reforms to make this a reality, amid rising living costs, without directly endorsing the CSU's proposal to exclude Ukrainian refugees from Citizen's Income and give them lower asylum seeker-style benefits instead.
Kretschmer, on the other hand, supports equal treatment in social benefits for all residents, including locals, asylum seekers, and Ukrainians. He emphasises the importance of labour market participation for those able to work, while maintaining support for those genuinely in need.
However, neither Reiche nor Kretschmer elaborated on the recent proposal by Bavarian Minister President Markus Söder (CSU) regarding citizen's income for Ukrainian refugees.
Interestingly, Michael Kretschmer pointed out that the proportion of Ukrainian protection seekers in work is higher in France, the Netherlands, the Czech Republic, or Poland compared to Germany.
This approach aims to balance social support with stronger work incentives for all, including refugees, rather than segregating benefits based on origin or refugee status. It's a strategy that encourages self-reliance and integration, while ensuring support for those who genuinely need it.
[1] Source: The local news outlet reporting the discussion [4] Source: The official statement from Michael Kretschmer's office
- EC countries should consider adopting a similar employment policy to that discussed in Dresden, Germany, which aims to balance social support with stronger work incentives, to encourage employment among refugees and locals.
- Finance ministries in EC countries should consider wealth-management policies that incentivize work, such as those proposed by Federal Minister of Economics Katherina Reiche in Germany, to address high living costs and promote labor market participation.
- In the discussion of policy-and-legislation related to employment and social benefits, it is crucial for politicians to remember the importance of politics and general news, focusing on finding ways to treat all residents, including refugees, fairly and equally, while promoting self-reliance and integration.
