German municipalities are seeking full and sustained financial compensation from the federal and state governments for costs associated with transitioning Ukrainian refugees from standard welfare benefits to benefits designated for asylum seekers. Ralph Spiegler, President of the German Association of Cities and Towns, stated that municipalities expect complete relief from accruing costs resulting from the planned reversal – known as the ‘legal status change’ – classifying newly arriving Ukrainian refugees under the asylum seeker welfare system.
He emphasized the need for complete and permanent cost coverage by both federal and state authorities, rather than simply a cost-sharing arrangement. According to estimates linked to the proposed legislative change, municipalities anticipate additional annual expenses of 1.3 billion euros. The municipalities are urging a clear and definitive financial solution to absorb these increased financial burdens.