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Berlin to give states billions for migrants

September 14, 2016

The German government has approved a financial package aimed at helping states and local authorities shoulder costs associated with refugees. The move comes after clashes between state officials and the Berlin cabinet.

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Wolfgang Schäuble in Bratislava
German Finance Minister Wolfgang SchäubleImage: DW/B. Riegert

The federal government on Wednesday passed a draft law that includes a pledge to pay for accommodation of people with official refugee status.

"We are starting measures that will amount to some 20 billion euros ($22.5 billion) by 2019," German Economy Minister Wolfgang Schäuble said.

This package will see Berlin provide Germany's 16 states with a total of 2 billion euros per year for the next three years. The states are given free reign on how to spend the funds, as long as the money goes to helping refugees integrate into society.

In addition, the federal government will pay another billion to help build new housing.

Between 2016 and 2018, Berlin will also take over all living expenses for newcomers with confirmed refugee status. These expenses, such as rent and heating, have previously been delegated to municipal levels.

Struggle over budget

Many local and state officials have slammed Berlin for calling on the lower levels of government deal with the financial burden. The federal government currently contributes 670 euros per asylum-seeker per month while states process a person's application for asylum.

With the critics growing louder, Chancellor Angela Merkel and Schäuble managed to reach the deal with state premiers earlier this summer. The document Schäuble presented on Wednesday is a result of those discussions.

In another attempt to ease the burden on local authorities, the federal government has pledged to waive parts of revenue tax income, starting in 2018. Also, the federal budget will pay more for accommodation and heating for state welfare recipients, which could go to Germans and foreigners alike.

The government's bill needs to be passed by parliament before going into effect.

dj/sms (epd, dpa, Reuters)