Recently, there has been a major change in the welfare system in Germany which affected unemployment statistics to a big degree. Many people who were not counted as being unemployed (but had no job for some reason anyway) are now, increasing the official number by a considerable margin.
Official numbers are closer now to the real figure which is in excess of 6M people without work.
Alongside those changes new rules for "acceptance levels" for jobs are in place which require people to either lose welfare or accept crappy jobs which they could simply turn down under the old law. Having 6+ million people without work, Germany simply can't afford that luxury anymore.
The new rules, however, are a bureaucratic behemoth and rushed into place without working out many details. The article is a worst case scenario of what might happen if people in the agency were to follow those laws to the letter without using their brain in the process.
Bottom line: If she goes to court in that scenario she'd win.
