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German Welfare Bill Climbs to €46.9 Billion as Coalition Splits Over Ukrainian Benefits

Predicted to swell by €29 billion by 2029, rising Bürgergeld outlays are driving calls to bar Ukrainian refugees from support or to bolster job-placement efforts before autumn reforms

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Overview

  • 2024 payments for Germany’s basic income support rose by €4 billion to €46.9 billion, reaching 5.5 million recipients including nearly 4 million of working age.
  • Nearly half of Bürgergeld funds went to non-Germans, with €6.3 billion disbursed to Ukrainian refugees whose employment rate climbed from 24.8 percent to 33.2 percent.
  • The Bundesrechnungshof warns that without additional cost-containment measures annual welfare spending could jump by another €29 billion by 2029.
  • SPD leaders defend the current system and call for stronger activation policies, while CSU head Markus Söder demands stripping all Ukrainians of Bürgergeld support.
  • Early cost-saving measures such as the Jobturbo placement program failed to meet savings targets, prompting demands for firmer enforcement of participation requirements.