Senator Evers expresses criticism towards the Citizens' Fund in the financial sector
Germany is currently grappling with a contentious debate over proposed reductions in social state benefits for Ukrainian refugees, particularly those arriving after April 1, 2025. The government aims to shift these new arrivals from the more generous Citizen’s Allowance (Bürgergeld) to benefits under the Asylum Seekers’ Benefits Act, resulting in around €100 less support monthly per refugee.
Key elements of the proposed reforms include:
- The reductions specifically target Ukrainians arriving after April 1, 2025. However, some political figures, such as Bavarian Prime Minister Markus Söder, argue for extending cuts to all Ukrainian refugees in Germany.
- Officials cite budgetary pressures and data showing a significant portion of registered Ukrainians are not employed, despite generally having high educational qualifications. Söder reasons that the current system discourages labor market integration because Ukrainians receive immediate welfare without undergoing asylum procedures.
- Söder and the Christian Social Union (CSU) advocate ending or drastically reducing Bürgergeld payments to Ukrainians. The Christian Democratic Union (CDU) partly supports reducing benefits for new arrivals but opposes retroactive cuts affecting Ukrainians already in Germany. The Social Democratic Party (SPD), the coalition partner, so far resists broad rollbacks beyond newly arrived refugees.
Additional context:
- Ukraine is unique among countries whose refugees can immediately access full welfare benefits without asylum process delays, including rent and health insurance costs covered by taxpayers.
- Germany hosts approximately 1.25 million Ukrainian refugees, with about 21,000 new arrivals between April and June 2025.
- The draft law must pass both the federal cabinet and the Bundesrat (upper parliamentary house) to take effect, potentially by the end of 2025.
A federal-state commission has been announced by the new black-red coalition in the federal government to make reform proposals in the social sector. This commission, which will be responsible for proposing reforms including the citizen's allowance for refugees, will also discuss fundamental social state reforms, potentially including the citizen's allowance for refugees.
Berlin, among other states, has long complained about the increasing costs in the social sector due to decisions made by the federal government. The commission is intended to address the issue of sharply increasing costs at the state level in the social sector. However, the states might find it challenging to take on a large performance obligation if Söder's proposal is implemented.
Evers, Berlin's Finance Senator, expressed a need for a broader perspective on social state reforms, including the citizen's allowance for Ukrainian refugees. Evers also suggested that there will be a discussion between the federal government and the states regarding the practical implementation of Söder's proposal.
Leading politicians from the coalition partner SPD have rejected Söder's proposal. The commission's proposals might address the balance of financial responsibilities between the federal government and the states in the social sector, potentially alleviating the financial burden on the states in the social sector.
In summary, the debate revolves around the government’s attempt to reduce welfare expenditures by cutting benefits for newly arrived Ukrainian refugees, while politicians like Söder push for broader reforms applying to all Ukrainian refugees to encourage employment and reduce costs. Opponents warn these measures could hamper integration efforts and cause administrative burdens.
Finance Senator Evers in Berlin expressed a need for a broader perspective on social state reforms, particularly regarding the citizen's allowance for Ukrainian refugees, suggesting a discussion between the federal government and the states. The proposed reforms, aiming to cut benefits for newly arrived Ukrainian refugees, may affect the balance of financial responsibilities in the social sector and alleviate state-level costs, though leading politicians from the SPD have rejected the proposals due to concerns about hampering integration efforts and causing administrative burdens. In the realm of policy-and-legislation and politics, the debate continues over the proposed reductions in social state benefits for Ukrainian refugees, with some, like Bavarian Prime Minister Markus Söder, advocating for extending these cuts to all Ukrainian refugees in Germany to encourage employment and reduce costs.
