The federal government is tightening the rules against abuse of social benefits and is increasingly taking action against junk properties and organized exploitation.
AI-generated summary
With the plan, the federal government is responding to problems relating to exploitative business models and abuse of social benefits. The measures are based on decisions of the coalition committee.
The federal government wants to curb social abuse. To this end, the Federal Cabinet decided on an action plan with ten points. Exploitative business models in connection with so-called junk real estate should be combated more effectively, as the plan states. Basic security should no longer flow to people wanted by arrest warrant.
Chancellor Friedrich Merz (CDU) wrote on Platform
Among other things, there should be new powers for municipalities and job centers. Municipalities should be given the opportunity to take better action against so-called junk properties. Employers who rely on undeclared work should also be held more liable. In addition, people who are wanted with an arrest warrant should no longer be able to receive basic security. The previously limited data exchange between authorities is to be improved.
Federal Social Minister Bärbel Bas (SPD) stated that it was unacceptable for workers to use freedom of movement within the EU to exploit people. The federal government wants to take tougher action against this. “We do not tolerate exploitation and abuse of social benefits,” said the minister. Federal Interior Minister Alexander Dobrindt (CSU) emphasized that the law would close loopholes in the welfare state. The state is taking a clear stance against social fraudsters.
Bas and Dobrindt developed the plan together. Decisions from the coalition committee and from the coalition agreement should be implemented. Detailed consultations were held with affected municipalities. According to the action plan, the decided measures should be implemented by the end of the year.
These are the ten measures at a glance
More data exchange between authorities: Social, immigration, registration, financial and security authorities as well as health and nursing care insurance companies should compare data more comprehensively, also with the help of AI-supported analysis systems.
Closer local cooperation: The federal government wants to inform municipalities about the responsibilities and powers of social and regulatory authorities. With the support of the federal government, local authorities should create joint situation reports in order to pool findings and coordinate their actions.
Dialogue with affected cities: The federal government continues to participate in the Southeastern Europe working group of the German Association of Cities. The integration officer has also invited cities that are the main destinations for immigration from Southeast Europe to an exchange
New instruments against junk properties: municipal employees should be given easier access to dilapidated houses and cities should be able to exercise their right of first refusal more easily. If an owner does not comply with a final order for renovation, he should be able to be expropriated in the future. Registration authorities should be able to refuse registration if the use of the apartment is officially prohibited.
Stricter rules for receiving benefits: Anyone who is wanted with an arrest warrant, especially convicted criminals who do not serve their sentence, should no longer receive basic security or social assistance. EU citizens who are staying in Germany illegally should only receive bridging benefits for two weeks instead of one month until they leave the country. As with basic security, employers should also be liable for benefits paid incorrectly in social assistance in the future. In addition, the avoidance of payment cards for asylum seekers should be combated.
Prosecution of those behind it: Organized social fraud should be prosecuted more effectively. A test order has been decided for the time being: the responsible ministries should clarify whether criminal law needs to be expanded and how enforcement can be improved.
Enforcement of compulsory schooling: Children who do not go to school permanently or are only registered there for the sake of appearance should be recorded more quickly. In addition to sanctions from the states, there should also be consequences in tax, family, immigration and social law, for example if a family has moved away. The processes in the states should be improved in coordination with the Conference of Ministers of Education and Cultural Affairs.
New rules in freedom of movement law: EU citizens should no longer receive basic security or social assistance simply because they have lived in Germany for five years - their stay must also have been legal in the future.
Review of EU law: The Federal Government wants to persuade the EU Commission to review European freedom of movement law and propose clarifications or tightening measures - for example on abuse, on the requirements for the free movement of workers and on the receipt of social benefits, including family benefits. The Chancellery is starting the process.
Cooperation with countries of origin: In selected countries of origin, people should be informed about fair working conditions, legal standards and contact points in Germany before they leave the country.
AI outlook — possibilities, not facts
Implementation of the measures by the end of the year.
Likely · Within months

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