Germany cuts welfare payments for EU citizens

dollThe German government intends to reduce the access enjoyed by EU citizens to the nation’s social welfare benefits.

A draft bill will see EU citizens able to draw benefits only after having lived in Germany for five years.

Earlier in 2015 a federal court had ruled that unemployed EU citizens were entitled to welfare rights after living in Germany for just six months. Labour minister Andrea Nahles argued that this would encourage “social welfare tourism”.

She said that local authorities had to pay an estimated €800 million a year in unemployment benefits for the 130,000 EU citizens registered as jobseekers. She also said that German municipalities had to be protected from “financial overload”.

The bill does not exclude employed EU citizens from getting welfare payments or those who have already paid into the system through employment.

Nahles said: “What’s clear is that those who live, work and pay their contributions have a legal right to benefits from our social welfare system.

“But for those who have never worked here and are dependent on state financial support in order to afford the basic costs of living, the principle applies that they can apply for those means in their own country.”

The bill also gives migrants without any income a month’s worth of rent and food money. But after that, until those five years have passed, “the home country is responsible for paying the benefits,” and those migrating to Germany in search of work will have no welfare access.

In June there were 450,000 people from other EU states in receipt of social welfare benefits in Germany. This accounted for 12% of all EU foreigners in the country.

The bill must go before the Bundestag. Observers believe that it likely to be approved into law.