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    Berlin Coughs Up Another €2.6bln to German States to Support Migrants

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    The German government has set aside another 2.6 billion euros ($2.9 billion) for German states struggling to pay for the refugees and migrants in their care, Deutsche Welle reported on Wednesday.

    German states have successfully appealed to the federal government for more money to pay for the refugees and migrants in their care, Deutsche Welle reported on Wednesday.

    The federal government has agreed to take responsibility for the cost of accommodating refugees, and since September 2015 Berlin has paid the German states 670 euros per refugee per month.

    The government had planned a 6.9 billion euro budget for the expense this year, but after a review, that figure has increased by 2.6 billion euros, to 9.5 billion euros ($10.6 billion).

    The Finance Ministry also stated that it is providing the states with another 1.16 billion to spend on refugees in 2017, bringing the planned expenditure to 6.88 billion euros ($7.66 billion).

    In May Germany's Spiegel magazine reported that the Finance Ministry expects its refugee bill to reach 93 billion euros ($103 billion) by 2020. 

    According to the report, 25.7 billion euros ($28.6 billion) will be needed to pay unemployment payments, rent subsidies and other benefits for recognized asylum applicants by the end of 2020.

    The figure also includes 5.7 billion euros which have been earmarked for language courses, and 4.6 billion for schemes to help refugees find work. The ministry expects 55 percent of recognized refugees to have a job after five years.

    The ministry's estimates were based on the arrival of 600,000 migrants in 2016, 400,000 in 2017 and 300,000 in each of the following years. 

    The German states estimated their annual refugee cost at 21 billion euros ($23.3 billion) this year, which is expected to have risen to 30 billion euros per year in 2020.

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    expenditure, budget, migrants, refugees, German Ministry of Finance, Germany
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