Germany is testing an unconditional basic income. A road for Europe?

For some it is a chance to find your own way, for others a comfortable hammock. Unconditional basic income is an issue under discussion in many countries. The citizens’ initiative calls for action by the European Commission.

What if man no longer had to worry about what to live for? Marwa Fatafta had asked herself this question many times in the past few weeks.

“I don’t think I would have so much fear and stress,” he says. Fatafta came to Germany as a Palestinian migrant, made a life for herself in Berlin, works for Access Now, an organization that campaigns for digital personal rights.

“It was clear to me right from the start that freedom means financial independence,” Fatafta explained to DW. – I used to want to earn a living by making art. When I realized that I would not have a steady income from this source, I gave up my dreams.

Marwa Fatafta is one of around two million people in Germany who have applied for a pilot unconditional basic income project. From next spring, 122 of them will receive a monthly remittance of € 1,200 for three years, and that is unconditionally.

The implementation of this project will enable the German Institute for Economic Research (DIW) and the My Basic Income Association to see what impact unconditional basic income has on society.

‘This study is a great opportunity to translate the theoretical debate on unconditional basic income that has been around for years into social realities,’ explains Jürgen Schupp from DIW, who led the study.

– We want to find out if the payment of unconditional basic income over a longer period leads to statistically significant changes in people’s behavior and well-being.

The concept of an unconditional basic income is quite simple in design: each person receives a certain amount each month from the state, regardless of who they are or what they do. Unlike the Hartz IV Basic Welfare Allowance, the basic income cannot be reduced, nor do you have to commit to anything. But you can earn extra money.

What amount is considered adequate? The people of Germany have a clear idea of ​​how much is needed for a modest and carefree life: around 1,200 euros, provided by the pilot project.

In order for the state to have enough resources to pay each citizen a monthly basic income, various financing models can be envisaged – for example, increasing the taxation of income, inheritance or financial transactions. Depending on the financing model, low-income people would then have more money at their disposal, the so-called middle class would have about the same amount, and the richest people a little less than before.

A basic income has been under discussion for a long time in many European countries. The citizens’ initiative now wants the European Commission to deal with this. It calls on the Commission to come up with an EU-wide unconditional basic income proposal.

According to activists, such income should reduce regional disparities and strengthen economic and social cohesion in Europe. The initiative will be fruitful when one million EU voters sign the petition within one year and at the same time a minimum number of signatures are collected in seven countries.

However, there is still a long way to the success of the initiative. Almost two months after the launch of the campaign, approximately 72,000 signatures EU citizens (as of November 21, 2020). One small success is already there: Slovenia was the first country to pass the minimum threshold of 5,640 signatures.

– There, the young, dynamic group managed to reach many young people on Facebook, Twitter and Instagram – says Ronald Blaschke, campaign coordinator in Germany.

On the other hand, in Poland or Malta, according to Blaschke, there is almost no public debate about the basic income. – There is no civic movement or large associations there – such as the Catholic labor movement in Germany, for example – that would somehow tackle this problem.

It is different in France. Basic income activist circles vary widely. “They range from the environmental movement and anti-poverty initiatives to liberal philosophical currents,” explains Ronald Blaschke in an interview with DW, pointing out that introducing a basic income would of course not be possible under Macron. – But surely the debate in France is much wider than in other countries.

Switzerland is the first European country to hold a referendum on unconditional income four years ago. The result was unequivocal: almost 77 percent of Swiss people rejected basic income.

Despite such setbacks, the idea of ​​a basic income keeps coming back, as it did in Finland recently. In 2017 and 2018, 2,000 randomly selected unemployed Finns received a monthly basic income of € 560 instead of the normal unemployment benefits – no applications, no forms, no red tape. In addition, they could earn as much as they wanted.

The study shows that the participants had greater psychological comfort due to the basic income. They were happier and laid back. It was believed that the financial security would enable them to try out new professional projects without risking bankruptcy. But such an impact on the labor market has not been noticed in Finland. On average, the project participants worked just six days more per year than the control group without a basic income.

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This result of the survey thus hits one of the biggest points of contention when it comes to introducing a basic income. Critics fear most citizens would prefer not to work at all then.

In addition, a basic income independent of gainful employment would reduce the pressure to consistently combat mass unemployment, explains political scientist Christoph Butterwegge. – Even if the unemployed were materially better equipped than before, the problem of their social exclusion would remain.

In fact, a study by the market research institute Splendid Research found that three out of four people in Germany say they would continue working – regardless of the amount of their basic income. “People would prefer a reduction in working hours to have more time for family life or voluntary activities,” says Ronald Blaschke.

Marwa Fatafta also has no intention of quitting her job if she had been receiving basic income for three years. – I like my job, that’s not the point at all – he says. Nevertheless, unconditional income could bring her relief in many life situations.

“It would be great if people could make professional decisions not out of fear, but driven by a positive feeling,” he explains. – People would do things because they matter to society and to us – not just some market value.

Polish editorial office of Deutsche Welle

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