Germany's CDU/CSU moves to replace Bürgergeld and add an 'Aktivrente'

After mid-June reform talks with employers and unions at the Chancellery, Friedrich Merz's CDU/CSU is advancing plans to abolish the Bürgergeld welfare system and replace it with a 'Neue Grundsicherung' built on stricter conditionality (Fördern und Fordern, 'support and demand'), cut electricity tax and grid charges, and introduce an 'Aktivrente' giving pensioners tax-advantaged earnings if they keep working.

The package combines welfare-conditionality reform with measures to keep older workers in the labour market — themes echoed across ageing European economies weighing how to contain welfare costs and ease labour shortages at the same time. The 'active pension' tax break is a concrete idea with clear UK relevance.