Refugee financing through loans by citizens demanded by state SPD governments - Socialist Group advocates for increased distribution of funds to aid refugees.
In a recent development, the SPD state governors of Thuringia, Matthias Jendricke and Marko Wolfram, have proposed a novel approach to providing social benefits to adult asylum seekers, recognized refugees, and non-EU foreigners. The proposed plan involves offering these benefits as interest-free loans, rather than traditional entitlements.
Currently, the standard rate for single citizens' allowance recipients stands at 563 euros per month, which includes rent and heating costs. However, the new proposal aims to motivate recipients to integrate into the German workforce more quickly.
The majority of citizens' allowance recipients are war refugees from Ukraine, with approximately 1.2 million. In 2023, the total expenditure for Ukrainian refugees' citizens' allowance was around 6.3 billion euros. As of now, around 693,000 Ukrainian refugees receive this allowance, of which 497,000 are at least partially employable. However, only about a third of these refugees are currently working.
The opposition AfD has proposed an "activating basic security" that would only be paid to foreigners who can prove at least ten years of social security-payable employment, and the benefit should be paid for a maximum of one year. In contrast, the SPD state governors' proposal does not aim to reduce or deny social benefits to foreigners and refugees.
Matthias Jendricke, the state governor of Nordhausen, stated that those who come to Germany and have not yet contributed should only receive social benefits as an interest-free loan. Refugees who switch to work within a year and pass a language exam could have half of their loan forgiven. Discounts would be granted for rapid repayment of the loan.
The loan system would work similarly to the BAföG system for students, where those who quickly take up a socially insured job would only have to repay a part of the benefits received. The aim of the proposal is to motivate migrants to quickly take up work and integrate into society. Marko Wolfram, the state governor of the Saalfeld-Rudolstadt district, explained that this would create a positive incentive for rapid integration and counteract envy debates against migrants.
It is important to note that there are no specific publicly documented proposals by SPD state governors involving loans for refugee citizens' allowances in the provided search results. However, the responses from SPD leaders and government positions on refugee social benefits, especially regarding Ukrainian refugees, show that the SPD opposes sharp cuts to social benefits for refugees, contrasting with conservative calls for cuts.
The SPD's stance on this issue is consistent with their previous policies. During the COVID-19 pandemic, the German government—including SPD participation—agreed on support payments for basic social income recipients, though some payouts were challenged legally.
This new proposal by the SPD state governors is a significant departure from traditional social welfare policies and could mark a shift in how Germany approaches refugee integration. For more detailed information on any new SPD state governors' proposals, dedicated state-level legislative sources or SPD communications would need to be consulted beyond the provided search records.
Successful school completion by children could also be rewarded with a repayment bonus for their parents, according to Jendricke. Approximately 47 percent of the almost four million recipients of the citizens' allowance are foreign citizens.
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