Debate is raging in Germany over poverty in the country and the impact of the labour market reforms (Hartz IV) introduced under former chancellor Gerhard Schröder. In his first general policy speech on 22 March at the Bundestag, the new minister for social affairs and employment, Hubertus Heil from the social democrat party, remained cautious and did not announce a change of tack. The size of the Hartz IV allocation, which is at the heart of the debate, will not be changed. However, the minster promised that a vast plan to combat child poverty will be launched. The SPD minister also underlined the aim of achieving full employment, which is one of the priorities of the new government, adding that he will introduce, within his first 100 days in office, the right to return to full-time work for employees that have chosen to work part time.
New debate on Schröder reforms. Did the labour market reforms, introduced by Gerhard Schröder between 2003 and 2005, deepen social inequality in Germany? Is the Hartz IV allowance, a combination of welfare and long-term unemployment benefit, synonymous with poverty? Jens Spahn, the health minister from the conservative CDU party, said at the start of March that Hartz IV did not mean “living in poverty” but is a “welfare state response to poverty”.
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