PrintShare
The government is relying on the payment card to make it more difficult for asylum seekers to make international transfers. But how much money flows into the refugees’ home countries?
Berlin – The payment card for refugees is intended to prevent money from being transferred to their home countries or to smugglers. The cards should be usable everywhere, but not abroad. But are referrals from asylum seekers actually a big problem?
Payment card should prevent return transfers
According to Bundesbank estimates, around 6.8 billion euros flowed abroad as remittances in 2023. Compared to the previous year, the total was 7.1 billion and therefore fell slightly. There was a decline in remittances to countries of origin for asylum last year. The decline was around 10 to 15 percent depending on the country. It is estimated that around 12 percent of all remittances flow into these countries, writes the Media service integration.
The payment card is coming: German politicians no longer want to hand out so much cash to asylum seekers. © IMAGO / Christian Ohde
The World Bank also estimates a decline in remittances for Germany in 2023 (around -4 percent, up to the third quarter), according to a response to a request from Media service integration. In 2022, she estimated the amount of remittances from Germany at 17.1 billion dollars or 15.9 billion euros. Media service integration is a project of the “Rat für Migration eV”, a nationwide association of migration researchers.
Remittances a problem? Refugees apparently send that much money back home
Together with the remittances, the total transfers from Germany amount to more than 22.4 billion euros, according to the Bundesbank. According to the World Bank, they were around $25 billion in 2022. The majority of the money, 75 percent, will, according to the Business Week transferred within Europe. The highest sum of 834 million euros apparently goes to Turkey, 604 million to Romania and 534 million to Poland. In the wake of the Ukraine war, remittances to Ukraine increased. An estimated 451 million euros were transferred there.
Dilip Ratha, chief economist and consultant at the World Bank, estimates that asylum seekers spend 80 to 90 percent of their money in Germany. Even if only a small portion is sent home, these wages could make a big difference. In addition, those who actually come to send money home would find a way to continue doing so despite restrictions, Rathe told the Business Week.
Traffic light coalition: An overview of the Scholz cabinet
View photo series
Lindner wants to prevent transfers to home countries
In the debate about refugee policy, remittances have long been the focus. Finance Minister Christian Lindner (FDP) also set the goal of stopping remittances. “As finance minister, I will have my experts examine how we can block money from social benefits being transferred to countries of origin,” said Lindner in 2023. Germany must “reduce the attractiveness of our welfare state,” said Lindner in an interview with t-online. Money transfers to refugees’ home countries could also be “a source of financing for smuggling crime.”
What are remittances?
Remittances are private money transfers abroad. This usually means transfers to family or friends in the country of origin for everyday costs, doctor visits or school fees. This does not include transfers between states or companies. There is no obligation to report remittances, so the amount can usually only be estimated.
The big advantage of remittances is that they are paid directly to individuals and families. They flow according to the Federal Agency for Civic Education Unlike government development aid and foreign direct investments to the state, companies or other organizations, they directly increase disposable household income. As a result, they can usually meet the needs of the recipient families and also in the Help fight poverty.
2024-03-07 06:15:44
#Return #transfers #social #benefits #money #asylum #seekers #transfer #homeland
