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flag Germany is merging four welfare agencies into two and combining benefits into one payment to cut bureaucracy, aiming for passage by 2027.

flag Germany is overhauling its welfare system to simplify access by consolidating four agencies into two and merging benefits like unemployment, housing, and child support into a single payment. flag The reforms, unveiled in January 2026, aim to reduce bureaucracy through digital upgrades, better data sharing, and less paperwork, without cutting current benefit levels. flag Labour Minister Baerbel Bas called the changes essential for fairness and efficiency, while Chancellor Friedrich Merz praised the structural shift. flag The goal is to pass legislation by the end of 2027, though officials acknowledge the timeline is ambitious.

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