The German government is poised to introduce a controversial “municipal square meter cap” aimed at curbing social welfare fraud involving dilapidated and overpriced housing, a move sparking debate within the ruling coalition. Labour Minister Bärbel Bas of the Social Democratic Party (SPD) announced the proposal in an interview with “Bild am Sonntag”, stating the measure seeks to “effectively limit housing costs and combat exploitation at the expense of the most vulnerable” through what she termed “shoddy real estate.
The proposed cap, slated to be incorporated into the upcoming draft law overhauling the Bürgergeld (social welfare) system, would grant municipalities the authority to restrict exorbitant rents often charged by criminal organizations exploiting the system. These organizations, officials allege, frequently cram multiple Bürgergeld recipients into substandard housing units, receiving the standard single-person apartment rental rate from the state for each tenant, effectively generating artificially inflated square meter prices reportedly reaching triple-digit figures in some areas.
However, the initiative has triggered internal dissent within the fragile “black-red” coalition government comprising the SPD and the Christian Democratic Union (CDU). CDU General Secretary Carsten Linnemann, in a separate interview with “Bild am Sonntag”, expressed optimism regarding the potential for significant savings – estimates reportedly reaching billions of euros – stemming from the Bürgergeld reform. He stressed the necessity for cost reduction as a core principle of the overhaul, emphasizing a desire for “new fairness” and a rapid reintegration of individuals into the workforce.
Labour Minister Bas, however, presented a different perspective. She maintained that substantial savings within the basic social security system would be primarily achieved by facilitating employment opportunities, underscoring the vital role of economic growth in realizing this objective. This divergence in viewpoints highlights a fundamental disagreement over the primary drivers of savings within the Bürgergeld reform, potentially complicating its passage through parliament and raising questions about the government’s overall strategy for social welfare reform. The effectiveness and potential unintended consequences of the municipal square meter cap remain to be seen, but the measure is already generating considerable political friction and scrutiny.