The German Federal Labour Minister, Bärbel Bas, is preparing a comprehensive package of measures aimed at curbing social welfare fraud. According to reports, Minister Bas emphasized the urgency of addressing this issue, stating that it risks discrediting those genuinely in need of assistance. She confirmed close consultations with the Chancellor regarding the matter and indicated further detailed proposals will be presented in the autumn.
A key element of the planned strategy involves enhanced data sharing between federal, state and local authorities. This includes improved coordination between immigration offices, employment agencies and security services, particularly customs authorities, to systematically combat organized fraud. The Federal Employment Agency is also planning to establish a specialized “Competency Center for Benefit Abuse” to support these efforts.
However, differing perspectives exist regarding the most effective approach. Carsten Linnemann, General Secretary of the Christian Democratic Union (CDU), is advocating for stricter enforcement of EU regulations concerning freedom of movement for workers. He argues that Germany needs to bolster the resilience of its social system and protect it from exploitation by criminal networks. Linnemann specifically calls for a redefinition of the “worker” concept at the EU level to prevent situations where individuals work minimal hours and supplement their income without engaging in full-time employment.
He criticizes the current system as presenting a loophole easily exploited and suggests that a full-time employment status should be the primary criterion, especially for single individuals without children.
Furthermore, Linnemann is demanding more stringent penalties for employers engaging in illegal employment practices, which he characterizes as a major entry point for social welfare fraud. He stresses the organized criminal nature of these activities, describing them as systematically exploiting Germany’s social safety nets. He proposes treating employers of illegally employed individuals as liable for the full extent of benefits wrongfully received, effectively holding them financially responsible for any fraud committed by their employees.
