Abstract
In January 2005 the Social Code Book II came into effect in Germany. It introduced the new unemployment benefit II (Arbeitslosengeld II) as a major element and final stage of a series of labour market reforms termed the Hartz reforms which aimed at flexibilization of the German labour market and granted (re)integration of persons in need into the labour market precedence over pure economic subsidies. The new means tested benefit integrated the former social assistance (a welfare benefit) and the former unemployment assistance for long-term unemployed persons whose entitlement to unemployment insurance payments had expired. Its paradigm is summarized in the slogan “support and challenge” (in German “fordern und fordern”). Support for integration into employment was extended to groups that had formerly been far detached from the labour market. On the other hand status protection regulations were disestablished and pressure on recipients to take up any reasonable employment was increased by the introduction of benefit sanctions and active labour market programmes designed to test work motivation.
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