Germany implements social welfare and energy reforms FAST-MOVING

Germany is undergoing significant legislative changes affecting social welfare, taxation, and energy regulations. A new social welfare reform aims to standardize benefits and prevent excessive payouts, such as those seen in large families in Vienna. Under the new 'Grundsicherung' (basic security) rules, asset exemptions (Schonvermögen) are now strictly tied to the recipient's age, with limits ranging from 5,000 euros for those under 30 to 20,000 euros for those over 50.

In the energy sector, the Building Modernization Act introduces mandatory energy audits for non-residential buildings starting in 2027, shifting from consumption-based to requirement-based certificates. Additionally, a new draft law proposes mandatory annual energy renovations for 3% of public buildings between 2027 and 2040.

Taxation and housing benefits are also seeing adjustments. Proposed changes for 2027 include reducing tax deductions for manual labor services, which could impact retirees. Furthermore, the government plans to reform 'Wohngeld' (housing allowance) by suspending automatic inflation adjustments and halving the heating cost component to alleviate the federal budget.