Europe
Germany’s welfare overhaul could leave millions facing benefit cuts
Germany’s new government has replaced the Bürgergeld citizens’ income benefit with a new basic income support scheme as part of a broader overhaul of the country’s welfare system.
The Bürgergeld benefit had been in force since 2023, replacing the previous Unemployment Benefit II. According to junge Welt (jW), the latest changes effectively mark the return of the “Hartz IV regime” introduced under former Chancellor Gerhard Schröder in 2005.
Federal Labour Minister Bärbel Bas of the SPD on Wednesday described the reforms as “a strong signal against the abuse of social benefits.”
Steffen Kampeter, head of the Confederation of German Employers’ Associations, backed the move and called for the “consistent enforcement of stricter cooperation obligations.”
Officials at Bas’s ministry are currently drafting legislation governing how the new basic income support will be calculated. The process is referred to as the “standard needs assessment.”
The shift from Bürgergeld to the new basic income support represents more than a change in name. The central principle is that securing employment takes priority. If low-paid jobs are available and deemed “reasonable,” job seekers registered with employment agencies will be required to accept them. Failure to do so will result in benefit reductions.
According to the Federal Employment Agency (BA), the reform’s primary objective remains placing people into long-term employment, while vocational training and continuing education are given secondary importance.
Bas has likewise described the policy as one that “promotes employment rather than benefit dependency,” adding: “Everyone who is able to work must make an effort to find a job.”
According to a statement published on Wednesday by the organization Sanktionsfrei, that characterization does not reflect reality. Of the roughly 5.5 million people receiving basic income support, nearly two million are children and young people. At least 800,000 recipients are already working but must supplement their income because of low wages.
In addition, more than one million benefit recipients are unable to participate in the labor market because they care for relatives, look after children, are in education or are ill.
The share of recipients who “completely refuse” to seek work is negligible. Even the Federal Employment Agency’s Institute for Employment Research identified only around 100 such cases last year.
The federal government also plans to reduce housing benefits. Joachim Rock, managing director of the Paritätischer Gesamtverband, said on Wednesday that the move would push recipients of both basic income support and housing assistance further into poverty.
Older people and families would be particularly affected. At the same time, the governing coalition has pledged to eliminate homelessness by 2030.
Ines Schwerdtner, co-chair of Germany’s Left Party, argues that abolishing the standard benefit entirely would violate fundamental rights and is considering filing a constitutional complaint against the reforms with the Federal Constitutional Court.
Europe
Germany seeks stronger Mercosur ties to diversify trade and secure raw materials
Germany is seeking to strengthen ties with the Mercosur trade bloc and secure greater access to Argentina’s natural resources as part of an effort to reduce its economic dependence on the United States and China.
German Foreign Minister Johann Wadephul attended the Mercosur summit in Paraguay on Tuesday before traveling to Argentina on Wednesday for talks aimed at expanding German companies’ access to the country’s natural resources, including lithium.
On Thursday, July 3, Wadephul continued his regional tour in Brazil, Mercosur’s largest economy.
Berlin hopes to increase exports to the South American bloc as it seeks to reduce its reliance on exports to the United States.
At the same time, the Trump administration is working to tighten its influence over Latin America. To that end, it is backing right-wing electoral candidates, including Flávio Bolsonaro in Brazil.
Washington is also expanding its military presence in the region under the stated objective of combating drug cartels and criminal gangs.
According to German Foreign Policy, Wadephul visited Paraguay, Argentina and Brazil this week. While in Paraguay, he also met Chilean President José Antonio Kast and Foreign Minister Francisco Pérez Mackenna.
The main focus of his trip was strengthening relations with Mercosur, the South American trade bloc with which the European Union signed a free trade agreement after more than 25 years of negotiations.
Although the European Parliament suspended the agreement on January 21 for legal review, the European Commission decided to provisionally apply its trade provisions from May 1.
On Tuesday, Wadephul attended the Mercosur summit in Asunción, Paraguay, where several disagreements among member states became apparent.
One unresolved issue is how export quotas for agricultural products allocated to Mercosur under the EU free trade agreement should be distributed among member countries.
Tensions have also emerged after Argentina signed a bilateral free trade agreement with the United States in February. The move is viewed as conflicting with Mercosur’s founding principles and risks undermining the bloc’s cohesion.
For Germany and the EU, Mercosur is regarded as a partial alternative to exports destined for the US market, making relations with the bloc strategically important.
Alongside expanding trade, another key objective is broadening Germany’s access to critical raw materials.
Argentina possesses some of the world’s largest lithium reserves. On Wednesday, Wadephul signed a memorandum of understanding intended to facilitate German companies’ access to the country’s raw material resources.
Australia is currently the largest investor in Argentina’s lithium sector, with Australian companies operating alongside firms from the US and the UK. China also maintains a significant presence in Argentina’s lithium industry.
Germany is attempting to differentiate itself from its competitors by pledging to help develop processing capacity within Argentina, a commitment Wadephul reiterated on Wednesday.
Under President Javier Milei, Argentina’s economy has shifted increasingly toward raw material exports, while its industrial sector has come under mounting pressure.
Expanding domestic processing of those resources could help alleviate some of those challenges. Representatives of Germany’s commodities industry accompanied Wadephul during the visit.
Europe
UK lawmakers call for ban on Russian cartoon Masha and the Bear
Lawmakers from across the UK political spectrum have called for the Russian-produced animated series “Masha and the Bear” to be banned in Britain.
According to The Guardian, a cross-party group of lawmakers from the Liberal Democrats, Labour Party, Conservative Party, Green Party, Scottish National Party (SNP) and Plaid Cymru sent a joint letter to Culture Secretary Lisa Nandy.
In the letter, the lawmakers called for the cartoon to be removed from broadcast, arguing that it constitutes “covert Russian propaganda.”
The MPs cited scenes in which the main character, Masha, appears wearing military symbols associated with the Soviet era.
According to the letter, Masha wears headgear resembling a Soviet tank crew helmet in one episode, while another depicts her wearing a cap similar to that of border guards from the Soviet People’s Commissariat for Internal Affairs (NKVD).
The lawmakers argued that such visual elements “normalize Soviet military iconography” among the show’s global audience of young children.
The letter, led by Liberal Democrat MP Tom Gordon and signed by more than 50 lawmakers, said urgent action was needed after streaming platform Netflix acquired the rights to the cartoon’s new seasons. The MPs also described the show’s availability on ITVX in the UK as unacceptable.
Melanie Bonvicino, speaking on behalf of Russian animation studio Animaccord, the producer and distributor of the series, firmly rejected the allegations.
Bonvicino described the accusations of propaganda as “false and defamatory,” adding:
“For nearly two decades, Masha and the Bear has brought joy to families in more than 100 countries through universal themes of friendship, kindness and imagination. There is no political subtext in the series, and any suggestion to the contrary is entirely inconsistent with its content.”
Inspired by a Russian folk tale and centered on the adventures of a young girl and a bear, the animated series ranks among the most-watched productions in YouTube history.
The seven-minute episode “Recipe for Disaster” has been viewed more than 4.6 billion times, earning a Guinness World Record as the most-viewed animated video.
Entertainment industry publication Deadline reported that Netflix had acquired the rights to the series’ eighth and ninth seasons while renewing agreements for previous seasons and related spin-offs.
The series is broadcast in more than 100 countries, including the US, Canada, France, Portugal, India, Japan, South Korea, Malaysia, the Nordic countries and the Benelux region.
Political criticism of the cartoon has surfaced before. In 2018, The Times described the series in an analysis as an instrument of Russia’s “soft propaganda.”
At the time, the Russian Embassy in London mocked the allegation, saying: “Are you going to put all animators on the EU sanctions list? Clearly, a determined and costly approach is required.”
Most recently, Estonian Foreign Minister Margus Tsahkna also criticized Netflix’s decision, saying Masha and the Bear forms part of the Kremlin’s “soft power” and calling for “moral clarity in the face of Soviet symbols.”
Europe
Germany’s BSW proposes cooperation with AfD to break political ‘firewall’
Germany’s Sahra Wagenknecht Alliance (BSW) has offered to cooperate with the Alternative for Germany (AfD), challenging the country’s long-standing “firewall” policy that prevents cooperation with the far-right party.
The proposal to dismantle the political “firewall” appears, at least in part, aimed at strengthening Wagenknecht’s party by attracting AfD voters.
In a letter dated June 26, BSW leaders wrote: “From the very beginning, BSW has criticized the ‘firewall’ erected against the AfD. It is undemocratic and solves no problems.”
The AfD continues to hold a commanding lead in opinion polls ahead of two state elections in eastern Germany scheduled for September, where BSW also enjoys pockets of support.
However, it remains uncertain whether the AfD’s polling advantage will translate into political power because other parties continue to refuse to form coalition governments with it.
BSW is now attempting to bypass that political isolation by proposing cooperation with the AfD in the two eastern states, provided the AfD agrees to appoint non-party-affiliated state premiers and govern through “changing majorities” rather than a formal coalition.
Although the proposal falls short of offering a coalition government, it could potentially help end the AfD’s political isolation.
In an interview with POLITICO, BSW co-chair Fabio De Masi described the firewall against the far right as a failure and presented cooperation with the AfD as a way to prevent the party from becoming even stronger.
“If the establishment parties continue down this path, essentially always joining forces around the lowest common denominator simply to block the AfD, it will ultimately lead to the AfD securing an absolute majority, at which point it could come to power without any checks. That is why we are trying to find a third way, one that demonstrates to voters that we are solving problems and, given that the AfD is polling at 40% in Saxony-Anhalt, recognizes that the party must be included in certain political decisions,” De Masi said.
Wagenknecht founded BSW in 2024 after leaving Die Linke, launching what she describes as a “left-conservative” movement that blurs the traditional divide between the political left and right.
While advocating traditional left-wing policies such as an expansive welfare state, the party has also adopted some anti-immigration positions and pursued a foreign policy critical of the war in Ukraine.
The new party initially surged in opinion polls but suffered a major setback in last year’s snap federal election, winning 4.98% of the vote, just below the 5% threshold required to enter parliament.
Nevertheless, BSW continues to retain support in parts of the former East Germany. In Saxony-Anhalt and Mecklenburg-Western Pomerania, where state elections will be held in September, the party is currently polling close to the 5% threshold needed to secure representation in the state legislatures.
The AfD is aiming to win an outright majority in both eastern states holding elections in September, which would allow it to govern without coalition partners. Polls indicate the party is close to achieving that goal in Saxony-Anhalt.
However, it is also possible that the AfD could require the support of a smaller party such as BSW to take power in one or both states.
Against that backdrop, AfD leaders have signaled they could be willing to hold talks with Wagenknecht’s party.
Daniel Tapp, spokesperson for AfD co-chair Alice Weidel, told POLITICO in a written statement: “BSW faces the challenge of clearing the 5% threshold in the upcoming state elections. If it succeeds, the AfD will, of course, be prepared to hold discussions.”
In its letter to AfD leaders, BSW also proposed a series of debates between Wagenknecht and Weidel across eastern Germany, arguing they would help circumvent what it described as Germany’s public broadcasters becoming “increasingly propaganda-oriented state media.”
Tapp rejected that proposal.
Political analysts say BSW’s attempt to win support from AfD voters by offering cooperation is unlikely to succeed.
“BSW is currently fighting for its political survival. To attract media attention, it appears willing to consider almost any strategy, including moving closer to the AfD. But AfD voters have found their political home, and they are unlikely to leave it,” Benjamin Höhne, a political scientist at Chemnitz University, said.
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