Soder opposes tax hikes and citizenship advantages for Ukrainians
Markus Söder, the Bavarian Minister-President and leader of the Christian Social Union (CSU), has proposed a controversial reform that aims to encourage Ukrainian refugees with good education and skills in Germany to find employment. Söder suggests stopping social aid payments to Ukrainian refugees, including those already residing in the country, to incentivize their integration into the labor market.
In a pre-recorded interview with ZDF, Söder justified his new demand by stating that the current economic situation necessitates an "update on what is economically necessary." This proposal contradicts the current policy of providing citizens' allowance to all Ukrainian refugees in Germany.
Meanwhile, the German federal government has shown reluctance towards significant tax hikes, rejecting the European Commission’s proposal for a large increase in the EU budget and refusing to impose additional taxation on companies. This contrasts somewhat with Söder's tougher stance on social benefits for Ukrainians, indicating a focus on cutting certain social expenditures rather than raising taxes universally.
Barbara Bas, the Federal Minister of Labour and Social Affairs, has suggested tax increases for long-term financing of pensions, health, and long-term care insurance. However, Söder has expressed opposition to these tax increases, citing the coalition agreement and the recent lowering of taxes by the government.
The impact of Söder's proposal on the Ukrainian refugee community and the German labor market remains to be seen. The Union and SPD had previously agreed in their coalition agreement that only newly arriving Ukrainians should no longer receive the citizens' allowance. However, Söder's demand extends this policy to current and future Ukrainian refugees in Germany.
Söder's proposal may face opposition within the coalition and the Federal Government, as it contradicts the current policy and the coalition agreement. It remains to be seen how this proposal will shape the integration of Ukrainian refugees in Germany and the broader debate on social benefits and taxation in the country.
The proposed reform by Markus Söder, aimed at encouraging Ukrainian refugees with education and skills in Germany to find employment, controversially suggests halting social aid payments. This contrasts with the current policy of providing citizens' allowance to all Ukrainian refugees.
Despite the German federal government's reluctance towards significant tax hikes, Söder's tougher stance on social benefits for Ukrainians suggests a focus on cutting certain social expenditures, differentiating from the government's refusal to impose additional taxation on companies.
