Proposals have already been put forward by the Commission.
In the heart of Europe, a contentious discussion is unfolding regarding the future of citizens' allowance (Burgergeld) for Ukrainian refugees in Germany. The proposal, spearheaded by CSU leader Markus Söder and Chancellor Friedrich Merz's adviser Thorsten Frei, aims to address concerns about the perceived generosity of these benefits and their potential impact on employment among Ukrainian refugees.
At the crux of the debate is the unique generosity of Germany's citizens' allowance payments to Ukrainian refugees. Critics argue that Germany is the only country in Europe providing such generous benefits, which Söder believes is an excessively favourable treatment not granted elsewhere [2][3].
One of the key issues is the low labor market participation rate among Ukrainian refugees in Germany. Only about one in three working-age Ukrainians are reportedly employed, a fact that politicians attribute to disincentives created by generous benefits [1].
In response, the German government has agreed to reduce benefits for Ukrainian refugees arriving after April 1, 2025. These refugees will now receive lower asylum seeker benefits instead of the full citizens' allowance [1][4]. However, the proposal now extends these cuts to all Ukrainian refugees, including those already in Germany.
The proposal is part of a broader attempt to tighten conditions on social assistance, emphasizing that recipients must actively seek work and fulfill obligations to continue receiving aid [3][4].
The proposal has sparked controversy, with the Ukrainian ambassador to Germany expressing confusion and caution against scapegoating Ukrainians [3][5]. Labour Minister Bärbel Bas (SPD) has indicated that reforms will mainly target future arrivals, with current recipients retaining benefits, but sanctions may be toughened to enforce work-related duties [2][4].
Critics argue that the social benefit provided to Ukrainian refugees is higher than that under the Asylum Seekers' Benefits Act and does not provide enough incentive for work. They believe that ending the citizens' allowance could encourage refugees to find employment [6].
Despite the ongoing debate, the unemployment rate among war refugees who arrived in the country since 2022 remains high, with over half estimated to be unemployed [7]. Experts suggest that linguistic and bureaucratic hurdles make it difficult for Ukrainian refugees to enter the labor market [8].
However, there has been a noticeable improvement in the employment rate of Ukrainian refugees. According to the Federal Institute for Population Research (BIB), the employment rate has risen from 16 percent in 2022 to 30 percent in 2024 [9].
The potential savings to the state if Ukrainian refugees are no longer entitled to citizens' allowance could be significant, given that they represent a substantial portion of the refugees receiving these benefits [10].
This debate is a part of the ongoing conversation about perceived generosity towards refugees in the country. As the situation evolves, it remains to be seen how the proposal to end citizens' allowance for Ukrainian refugees will unfold [11].
- The policy-and-legislation under discussion in Germany centers around the possible termination of the citizens' allowance for all Ukrainian refugees, including those already residing in the country.
- This debate, a segment of the general-news, revolves around the perceived generous benefits provided to Ukrainian refugees in Germany, and the potential impact of these benefits on employment and the national budget.
