The Reichstag building in Berlin with the German flag and Fernsehturm in the background

The Reichstag Building in Berlin, Germany, is shown with the German flag flying and the Fernsehturm (TV Tower) in the background, under a clear blue sky. By MDL.

World

Germany’s Welfare Overhaul: Will Proposed Reforms Restrict EU Citizens’ Access to Benefits?

Germany plans to tighten social welfare for EU citizens, redefining employment to curb abuse.

byAndres Castro

September 22, 2025, 12:55 PM

Executive Summary

The German government is considering proposals to tighten social welfare access for EU citizens.

A key proposal involves redefining the concept of “employee” at the EU level to prevent individuals from working minimal hours and claiming substantial top-up benefits.

The reforms aim to combat perceived exploitation of Germany’s social welfare system by individuals working minimal hours while accessing generous top-up payments.

The Story So Far

Germany’s move to tighten social welfare access for EU citizens stems from a conservative push, led by Chancellor Friedrich Merz and Carsten Linnemann, to reform the *Bürgergeld* system. They argue that the current welfare structure is being exploited by individuals working minimal hours while claiming substantial top-up benefits, and that it lacks sufficient incentive for those able to work. This initiative is part of Merz’s broader “autumn of reforms” aimed at rejuvenating Germany’s economy, seeking to redefine EU-level employment criteria to address perceived loopholes within the bloc’s free movement rules that guarantee equal access to work-related social benefits.

Why This Matters

Germany’s proposed tightening of social welfare access for EU citizens, which includes redefining employment criteria at the EU level, signals a significant challenge to existing free movement principles and could spark broader debates across the bloc regarding social security frameworks. This initiative, championed by Chancellor Merz’s government to combat perceived welfare system exploitation and boost employment, aims to reform Germany’s welfare system and rejuvenate its economy, though it faces considerable domestic political opposition.

Who Thinks What?

The German government, led by Christian Democrats like Carsten Linnemann and Chancellor Friedrich Merz, believes the current social welfare system is being exploited by EU citizens working minimal hours and claiming substantial top-up benefits, advocating for tighter access, a redefinition of “employee” at the EU level, and reforms to incentivize full-time work.

The centre-left Social Democrats, junior partners in the coalition, have given limited backing to the proposed welfare reforms.

Other parties on the left have openly denounced the proposals to tighten access to social welfare benefits.

The German government is considering proposals to tighten access to social welfare benefits for EU citizens, with a senior official indicating a push to redefine employment criteria at the EU level. Carsten Linnemann, general secretary of the governing Christian Democrat party and a close confidant of Chancellor Friedrich Merz, stated that the move aims to combat the exploitation of Germany’s social welfare system by individuals working minimal hours while claiming substantial top-up payments.

Proposed Reforms and Rationale

Linnemann told the Bild tabloid that Germany needs to fight against “criminal gangs” abusing the social welfare system. He argued that immigrants from other EU countries come to Germany, work only a few hours weekly, and then access relatively generous top-up benefits intended for low earners.

“The concept of ‘employee’ must be redefined at the EU level. It should not be possible to work a few hours and supplement the rest, even though you are able to work full-time,” Linnemann stated. He characterized the relatively low threshold to qualify for benefits in Germany as “a glaring regulatory loophole that is just begging to be exploited.”

EU Free Movement and German Welfare

Current EU free movement rules allow all EU citizens to live and work in any country within the bloc. These rules also guarantee equal access to work-related social benefits, such as health insurance and unemployment payments, for those who qualify.

A reform of Germany’s basic welfare benefits, known as Bürgergeld or “citizens’ income,” was a prominent campaign issue for Chancellor Merz and his Christian Democrats. Merz, Linnemann, and other conservatives have contended that the current benefit structure does not provide sufficient incentive to work.

Broader Economic and Political Context

Last week, Chancellor Merz emphasized that significant changes to the welfare system are necessary as part of his promised “autumn of reforms,” which aim to rejuvenate Germany’s stagnant economy. He clarified, “It is not about making life even more difficult for people who are unable to work – but we want everyone who is able to work to actually work.”

In 2022, Merz drew criticism for comments regarding Ukrainian refugees claiming benefits after the German government waived a rule to make them immediately eligible. As then-opposition leader, he alleged that many Ukrainians were engaged in “welfare tourism,” receiving long-term unemployment benefits in Germany while traveling to their home country.

Political Reception

While welfare reforms supported by Merz, Linnemann, and other conservatives have garnered limited backing from the centre-left Social Democrats, who are junior partners in the coalition, other parties on the left have openly denounced the proposals.

Outlook

The proposed reforms reflect a broader political push by the German government to re-evaluate its welfare system, aiming to encourage employment and address perceived abuses. While backed by conservatives, the initiative faces scrutiny from across the political spectrum, highlighting ongoing debates about social security and free movement within the EU.