Germany: Berlin takes out emergency loan for migrants as costs spiral

Germany spends the same amount on its armed forces as it does on dealing with migration, but now new debt may provide a temporary solution

Dozens of people from all over the world line in front of the central registration center for asylum seekers in Berlin, Germany, Monday, Sept. 25, 2023. Across Germany, officials are sounding the alarm that they are no longer in a position to accommodate migrants who are applying for asylum. (AP Photo/Markus Schreiber)
By Remix News Staff
5 Min Read

The city of Berlin has been a major magnet for migrants, but instead of the economic boom promised, they are costing the state billions of euros. Now, the city is throwing more debt at the problem, which will be facilitated by the massive debt package passed by the Christian Democrats (CDU), Christian Socialists (CSU), Social Democrats (SPD), and the Greens.

Economics Senator Franziska Giffey (SPD) announced that Berlin is taking an “emergency loan for refugee costs “

“We are planning our state budget for 2026/27 under the assumption that we will be able to access further loans,” she said.

The Bundestag’s decision to amend the constitution will allow federal states to take out new debt, and the Berlin Senate is wasting no time doing the same, with most of the money flowing to foreigners.

The relaxation of the debt brake allows each federal state to take on debt that amounts to 0.35 percent of nominal GDP every year. For Berlin, this is a welcome reprieve, with the city’s migrant population straining the budget to the extreme. Now, Berlin can take out approximately €670 million every year in new debt, which will be €1.3 billion for the budget for 2026 and 2027.

Berlin Mayor Kai Wegner, of the CDU, is known for his welcoming stance towards immigrants; however, his government has struggled to house and care for this growing population. He said it is “absolutely right” that German states can take on more debt.

“Germany’s infrastructure has been criminally neglected and driven to wear and tear,” said Wegner, who was a major supporter of relaxing the debt brake.

As Remix News has reported in the past, Berlin has allocated €1.3 billion to housing refugees, while cutting public school budgets. The city has turned to tent cities and prefabricated structures to house migrants. Of course, the housing crisis is seen across Germany, with mass immigration pricing people out of the cities and leading to rising rents year after year. German security firms continue to rake in tens of millions of euros every year due to the violence, assaults and even sexual abuse seen in the various asylum centers in the city.

As the Berlin police chief Barbara Slowik noted last year, crime has soared due to mass migration in the city, which is further straining the security budget.

In an interview with RBB, she voiced concerns over the impact of immigration on the city and the broader nation, suggesting that the current levels of immigration are unsustainable, both financially and socially.

“I believe that a limit has been reached as to what is affordable,” she told the broadcaster.

She emphasized the need for a comprehensive societal response to address the growing number of violent incidents involving immigrants.

Now, with the new debt package passed in the parliament, federal states have significant leeway to spend the money how they want. A lot of that money is going to sustaining Germany’s new foreign population, which costs the federal government approximately €50 billion per year. That is approximately the same amount the country spends on the armed forces every year.

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