Draft law shows that Germany will cut benefits for newly-arrived Ukrainian refugees  

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**Germany Plans to Cut Benefits for Newly Arrived Ukrainian Refugees**

A draft law in Germany plans to reduce the state benefits for newly arrived Ukrainian refugees. According to estimates, this could result in a monthly reduction of 100 euros ($116) per refugee. The change is part of a broader effort by the German government to cut welfare spending.

**Ukrainian Refugees to Receive Lower Benefits**

Under the draft bill, Ukrainians arriving in Germany from April 1, 2025, would no longer receive the Citizen’s Allowance but instead would be eligible for benefits under the Asylum Seekers’ Benefits Act. These lower benefits are available to asylum seekers who have not yet been granted refugee status. The European Union’s Temporary Protection Directive currently allows Ukrainian refugees to directly claim welfare benefits without going through the asylum process.

**Impact on Refugees and Economy**

There are approximately 1.25 million refugees from Ukraine living in Germany, with around 21,000 entering the country for the first time between April 1 and June 30, 2025. The draft law requires approval from both the cabinet and the upper house of parliament before it can take effect by the end of the year. This change has sparked debate about the level of support Ukrainian refugees should receive. Some have called for all Ukrainian refugees to be excluded from higher benefits.

**Refugee Employment Rate**

According to government figures, around 64.1% of labour agency-registered Ukrainian nationals were not employed in July 2025. This includes those who are jobless, in courses, or receiving employment-related support. The reduction in benefits could make it even more difficult for these refugees to find stable employment and integrate into German society.

**Commentary**

This decision by the German government is a reflection of the country’s struggle to balance welfare spending with economic constraints. However, reducing benefits for newly arrived Ukrainian refugees may have unintended consequences on both the economy and social cohesion. The integration of refugees is crucial for Germany’s long-term success, and reducing their access to essential benefits could hinder this process.

**Analysis**

The impact of this change will depend on various factors, including the specifics of the draft law and how it is implemented. However, one thing is clear: reducing state benefits for Ukrainian refugees will have significant implications for both the individuals affected and German society as a whole. As Germany continues to grapple with its role in supporting Ukrainian refugees, it must also consider the long-term consequences of these decisions.

Read More @ www.reuters.com

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