Overview

• The Federal Ministry of Labour’s draft law is under interministerial review and seeks to reroute Ukrainian arrivals after April 1, 2025, into lower-rate asylum-seeker benefits to secure about €1.3 billion in projected savings.
• CSU leader Markus Söder is pressing to extend benefit cuts to existing Ukrainian recipients, prompting criticism from SPD figures including Vice-Chancellor Lars Klingbeil and Labour Minister Bärbel Bas.
• Labour experts, notably Enzo Weber of the IAB, warn that shifting refugees to asylum-seeker benefits would erode job-centre support and weaken work incentives.
• Employment rates for Ukrainian refugees climbed from 16 percent in summer 2022 to 43 percent by late 2024, underlining successful integration efforts.
• Analysts caution that federal compensation for reduced benefits will largely offset cost savings, resulting in minimal net relief for the budget.