German Cabinet Approves Framework for Direct Payments to Citizens

The new system aims to enable rapid financial support in crises, with initial implementation set for 2025.

Germany's federal government has approved a mechanism for direct payments to citizens, addressing gaps highlighted during recent crises such as the energy crisis and the pandemic.
The system will initially allow flat-rate payments, with plans to expand to income-based payments for specific groups in the future.
The technical infrastructure, including linking bank account details to tax IDs, is expected to be operational in 2025, correcting earlier statements about a 2024 rollout.
The initiative could pave the way for implementing previously stalled programs like climate compensation payments tied to CO2 pricing.
Decisions on specific payments or programs will be left to the next government following Germany's upcoming elections in February 2025.