Germany will halve federal aid for refugees next year

BERLIN (Reuters) – Germany plans to halve next year the federal aid it allocates to states to cover the costs of hosting and integrating refugees as part of budget cuts amid rising inflation after years of generous spending, sources told Reuters on Monday with.

More than a million people sought refuge in Germany after Moscow invaded Ukraine. Their support has put a strain on the nation’s cities and towns, and the country’s 16 states have called for more federal funding to cover the refugees’ costs next year.

On Monday, Berlin told federal states it would provide a maximum of 1.7 billion euros ($1.80 billion) in support for refugee spending in 2024, up from 3.75 billion euros this year, two said Government sources who did not want to be named due to the confidentiality of the meeting.

The federal government has not promised that the funds for 2023 will be replenished in subsequent years.

A Treasury spokesman said a meeting between federal and state governments on Monday on these issues had failed to produce any results ahead of a planned consultation with the Chancellor in November.

“In principle, the states are responsible for the accommodation and care of refugees. The federal government is aware of the national dimension,” the spokesman added.

The government will also cut its contribution to the costs of caring for and integrating Ukrainian refugees, the sources added.

(Reporting by Andreas Rinke; Text by Riham Alkousaa and Sharon Singleton)

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