On Germany's new dole system

Will the Bürgergeld undermine the secret to German success?

The Story

Germany's ‘traffic light’ government has agreed upon the details of the central social project of its coalition agreement: the Hartz IV unemployment benefits - enacted by the Social Democrats back in 2005 but hated on the left - will be replaced by a system called Bürgergeld ‘citizen’s income’.

Starting in January, the monthly dole payments will be bumped up by €50 to €502. Meanwhile, predicted inflation for the coming year will be built into the new allowance, replacing the current model of using price rises from the previous year.