North Rhine-Westphalia (NRW) is pressing the German federal government to adopt a more rigorous approach to welfare fraud, escalating a politically sensitive debate surrounding the exploitation of vulnerable migrants and the misuse of social benefits. A formal request, submitted to the Bundesrat (Federal Council), outlines a multi-pronged strategy focused on cracking down on the practice of renting dilapidated properties – often dubbed “scrap real estate” – to individuals, predominantly from Southeastern Europe, who simultaneously claim social assistance.
The proposal, revealed by “Der Spiegel”, aims to empower municipalities to more effectively combat this exploitative system. Key elements include granting local authorities the right to exercise their pre-emptive purchase rights even during compulsory auctions to prevent the acquisition of such properties by unscrupulous landlords. Furthermore, job centers would receive proactive information regarding the habitability of properties, allowing them to suspend benefit payments to individuals registered at declared addresses deemed uninhabitable.
The most contentious aspect of the NRW initiative lies in its call for the federal government to investigate the feasibility of imposing stricter eligibility requirements for EU citizens accessing the Bürgergeld (social welfare benefit), while ensuring compatibility with European law. Critics argue this move risks fueling anti-immigrant sentiment and could disproportionately affect vulnerable individuals genuinely in need of assistance. Supporters contend it is a necessary measure to address systemic abuse.
Minister-President Hendrik Wüst, justifying the initiative, emphasized the social and economic damage inflicted by this practice. He highlighted the inherent exploitation of vulnerable people and the growing anxieties within urban communities, framing the proposal as a means to dismantle the “criminal system” driving this abuse. “Scrap real estate and systematic welfare fraud lead to the exploitation of people and many fears and concerns in the urban society” Wüst stated. “Our proposals can make an effective contribution to ending the criminal system of welfare abuse and the systematic exploitation of migrants from Southeastern Europe.
The proposal’s reception is expected to be sharply divided, likely igniting a broader parliamentary discussion about the balance between providing social safety nets and preventing fraud and the often-fraught intersection of migration, welfare systems and criminal activity within Germany. The initiative also raises fundamental questions about the federal government’s responsibility in policing practices at the local level and ensuring the equitable application of social policies across member states.