Is it prudent to allocate substantial resources for citizens' benefit? Could funds intended for Ukrainians be spared? - Spending Billions on Citizens' Funds: Is it Justifiable to Cut Back on Aid for Ukraine?
Germany is preparing to reduce the citizens’ allowance (Bürgergeld) for Ukrainian refugees who arrive from April 1, 2025. The proposed draft law would cut monthly payments by about 100 euros per person, replacing the citizens’ allowance with the lower benefits provided under the Asylum Seekers' Benefits Act.
This change, which still requires approval from the German cabinet and upper house of parliament, has sparked conversations among key political and expert figures.
Political Views
Markus Söder, the Prime Minister of Bavaria and leader of the CSU (Christian Social Union), strongly supports ending the citizens’ allowance for Ukrainian refugees. He advocates applying the lower asylum seeker benefits instead, arguing Ukrainian refugees should not receive the same welfare as German citizens. Söder has also suggested extending this reduced benefit policy beyond new arrivals to all Ukrainian refugees. He claims that current benefits discourage refugees from seeking employment despite their qualifications and notes that Germany is unique in offering such comparatively high support to Ukrainians.
The current governing coalition in Germany, which includes the center-right Christian Democrats and the center-left Social Democrats, agreed to align benefits for Ukrainian arrivals after April 1, 2025, with the lower asylum seekers’ support. However, this policy has not yet been finalized into law and remains under discussion.
Expert Perspectives
Enzo Weber, an economist from the Institute for Labor Market and Occupational Research IAB, sees a disadvantage in switching from citizen's income to performance-based benefits for asylum seekers. He emphasizes that in basic security, there is advice, mediation, and qualification, which people need. If they are not in the basic security system, they have much less of that.
Other experts and politicians critical of the cuts cite concerns about integration and fairness, but the government emphasizes financial and policy alignment reasons for the reform.
Progress and Future Outlook
Work on a draft bill began in May and is being continued promptly and carefully. The planned citizens' allowance reform will also bring savings, although the exact amount is unknown. The responsible Social Minister Barbel Bas (SPD) did not comment on the proposal.
Union Chief of Staff Thorsten Frei showed himself open to Söder’s proposal in an interview with RTL/ntv, but emphasized that the coalition agreement can only be changed consensually, and they would have to speak with the SPD about this. A reform of the citizen's income is pending, as agreed in the coalition agreement. Benefits can be cut more easily if someone consistently refuses to accept jobs.
Economist Enzo Weber suggests that language promotion and qualification should be offered alongside work to speed up the integration process. He finds it problematic that there were long waiting times for language and integration courses for Ukrainian refugees in Germany at the beginning.
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The proposed draft law in Germany aims to reduce the financial support for Ukrainian refugees, replacing the citizens' allowance with lower benefits under the Asylum Seekers' Benefits Act. Markus Söder, the Prime Minister of Bavaria advocates for this change, suggesting it would discourage refugees from relying on welfare and encourage employment.
Experts like Enzo Weber of the Institute for Labor Market and Occupational Research express concerns about the implications of switching from citizen's income to performance-based benefits for asylum seekers, emphasizing the importance of continued advisory and qualification services in basic security.
