The German Federal Minister of Labour, Bärbel Bas, has announced plans for a swift rollout of measures aimed at curtailing social welfare fraud. In an interview with “Bild” Minister Bas emphasized the importance of a robust response, stating that such fraudulent activity undermines the legitimacy of the system for those genuinely in need. She confirmed ongoing discussions with the Chancellor and indicated that concrete proposals will be presented in the autumn.
A key element of the strategy will be enhanced data exchange between federal, state and local authorities. This includes facilitating information sharing between immigration offices, employment agencies and security services, particularly customs officials. This improved coordination aims to systematically combat organized welfare abuse. The Federal Employment Agency is planning a dedicated “Competency Centre for Benefit Abuse” to support this effort.
These plans are accompanied by calls for stricter regulations concerning the EU’s free movement of workers. Carsten Linnemann, General Secretary of the Christian Democratic Union (CDU), is advocating for a redefinition of the “worker” concept at the EU level. He argues that the current regulations, allowing individuals to work for a minimal number of hours while supplementing their income, create vulnerabilities exploited by criminal networks.
Linnemann maintains that the current threshold is overly lenient and effectively invites abuse, particularly in cases of single individuals without children. He is also demanding stricter penalties for employers involved in illegal employment, asserting that this form of “shadow work” has become a major gateway for social welfare fraud. He proposes that employers who illegally employ individuals should be held fully liable for any unjustified benefits received by those employees, effectively acting as “guarantors”. This approach is intended to deter and punish those facilitating the exploitation of the social welfare system.