BERLIN (Reuters) – Germany plans to halve the federal aid it allocates for states to cover expenses of receiving and integrating refugees next year as part of budget-tightening amid soaring inflation after years of generous spending, sources told Reuters on Monday.
More than 1 million people sought refuge in Germany after Moscow’s invasion of Ukraine and supporting them has taken a toll on the country’s cities and municipalities and the country’s 16 states have been demanding more federal funds to cover refugees’ expenses next year.
On Monday, Berlin informed the states it would allocate a maximum of 1.7 billion euros ($1.80 billion) as support for refugees’ expenses in 2024, down from 3.75 billion euros this year, two government sources said, who declined to be named due to the confidentiality of the meeting.
The federal government did not promise that it will match 2023 funding in the following years.
A spokesperson for the finance ministry said a meeting of the federal and states’ governments on Monday on the issues yielded no results ahead of a planned consultation with the chancellor in November.
“Essentially, the states are responsible for the accommodation and care of refugees. The federal government is aware of the national dimension,” the spokesperson added.
The government will eliminate its contribution to the costs of caring for and integrating Ukrainian refugees as well, the sources added.
($1 = 0.9447 euros)
(Reporting by Andreas Rinke; Writing by Riham Alkousaa and Sharon Singleton)
