Unconstitutional mixed
structures.
Flagship reform of the “2010 agenda” of the former green and red Schroder administration, social welfare,
managed by towns, and long-term
unemployment benefits,
managed by the Federal Employment Agency (BA), merged in January 2005 and gave
birth to the “Hartz IV” allowance (see
our dispatch No. 091169). This merger forced towns and employment agencies to create new mixed local structures, called jobcenters or “ARGEn,” which didn’t go
smoothly. Now, there are 346 jobcenters in Germany and their work for the beneficiaries of the “Hartz IV” allowance is
often regarded as one of the best accomplishments of the former Schroder administration. However, in 2007, the Federal Constitutional Court ruled that
these mixed structures were unconstitutional. Indeed, the
judges thought that they didn’t allow the beneficiaries to precisely know who gives them
which allowance or who to turn to in case of a complaint. Therefore, the Court
asked the government to reform this reform by January 1, 2011.
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