After months of dispute, the federal and state governments have reached an agreement on how to share refugee costs and agreed on measures to reduce irregular migration to Germany.

There are also plans to limit benefits for asylum seekers. Early in the morning, after almost nine hours of consultations with the heads of government of the federal states, Chancellor Olaf Scholz (SPD) spoke of a “very historic moment”. Hesse’s Prime Minister Boris Rhein (CDU) emphasized that a step had been taken in the right direction. “But it is also clear that a path consists of many steps, and of course further steps must follow.”

It was possible for all levels of the state to work closely together, said Scholz. “And that is also necessary, that’s what the citizens expect us to do.” Lower Saxony’s Prime Minister Stephan Weil (SPD) assured that in the end they had managed to “really achieve a good overall result”.

He would like this to now be supplemented by an agreement between the federal government and the Union. The decision by the federal and state governments offers “a very good basis” for this. The fact that there had been an agreement on the controversial financing issue was uncertain until early in the morning and was not a given.

Financing of refugee costs is being changed

The federal and state governments agreed to change the system for financing refugee costs. From next year onwards, the federal government will pay an annual flat rate of 7,500 euros for each first-time asylum seeker, rather than an annual total of currently around 3.7 billion euros. Scholz spoke of the “transition to a breathing system” and explained: “As the numbers rise there is more money; as the numbers fall there is less.”

Hesse’s Prime Minister Rhein explained that the states could always imagine getting even more money from the federal government. He explained that, together with relief, there is a total volume of around 3.5 billion euros for the municipalities. It was possible to “demonstrate the ability to act here”.

Weil calculated that the federal government wanted to give 1.2 billion euros for the coming year, while the states would have wanted more than 5 billion euros. “The fact that we managed to get pretty much in the middle under these conditions is really worth an exclamation mark at an early hour in the morning.” For the municipalities there will even be “a significant additional reimbursement amount” in 2024 because the 3.7 billion euros for this year include a special payment for Ukraine refugees that has to be deducted.

Reduction in the number of asylum seekers

The federal and state governments stated that too many people were currently fleeing to Germany. “Clear and targeted measures against uncontrolled immigration” are therefore necessary. The federal government wants to check whether asylum procedures are possible outside Europe. Asylum procedures should be processed more quickly than before, and the federal and state governments are setting new targets for this. Especially for people from countries with a recognition rate of less than five percent, the asylum process should be completed in three months. They want to stick to the controls that Germany is currently carrying out at the borders with Switzerland, the Czech Republic, Poland and Austria. Asylum seekers in Germany should in future receive at least part of their benefits as credit on a payment card.

Benefit cuts for asylum seekers

If procedures drag on, in the future only basic benefits under the Asylum Seekers Benefits Act should be paid for not just 18, but 36 months. Asylum seekers are currently entitled to a roof over their heads as well as food, clothing, healthcare and consumer goods for one and a half years. Instead of such benefits in kind, vouchers or cash benefits are sometimes provided. After 18 months, the rates increase to approximately the same level as regular social assistance. This step will take place later in the future, which will effectively mean a reduction in state benefits.

Dispute in the Prime Minister’s meeting about additional demands

Before the meeting began in the Chancellery, there had been a dispute over the migration issue during the discussions between the Prime Ministers. The Union-led states and Green-led Baden-Württemberg surprised the SPD side with a catalog of new demands. Among other things, they supported a proposal from North Rhine-Westphalia Prime Minister Hendrik Wüst (CDU) to allow asylum procedures outside of Europe. The federal government now wants to examine this – a step that the SPD, Greens and FDP had already agreed to in the coalition agreement.

The deliberations lasted three hours longer than originally planned. They were “not really refreshing,” said an annoyed Weil afterwards.

Commission for better control agreed

The federal and state governments decided to set up a commission to better manage migration. A broad social alliance should be founded that will jointly develop solutions to control migration and improve integration with the aim of maintaining social peace. For example, churches and trade unions, scientists and representatives of organizations that advocate for the interests of asylum seekers could take part, it said.