German Chancellor Friedrich Merz (CDU) has called on young Ukrainian men to serve in their home country rather than leaving for Germany. Speaking at the Germany Trade Congress in Berlin on Thursday afternoon, Merz said he had asked Ukrainian President Volodymyr Zelenskyy “to ensure that especially young men perform their service in their own country.” “They are needed there,” Merz said, emphasizing the importance of Ukrainian men contributing to their nation during the ongoing conflict.
Merz also reaffirmed the government’s plans to remove access to citizens’ benefits (Bürgergeld) for Ukrainian refugees in Germany. Instead, they will in the future receive support under the Asylum Seekers Benefits Act. The Chancellor added that the government would introduce “concrete changes” to ensure that “the incentive to work is greater than the incentive to remain in the transfer system.”
According to government sources, Labour Minister Bärbel Bas (SPD) and Interior Minister Alexander Dobrindt (CSU) have already reached an agreement on the new welfare rules. Under the proposal, Ukrainians arriving in Germany after April 1, 2025 will no longer be eligible for citizens’ benefits. The change will apply retroactively, although payments already approved will continue until they expire.
The agreement largely confirms the regulation outlined in the Labour Ministry’s draft bill, which entered interdepartmental review during the summer. “Anything else would have led to excessive bureaucratic complexity,” government sources said. The Cabinet is expected to approve the changes next week. According to a report by Bild newspaper, the reform would result in tens of thousands of Ukrainians losing their entitlement to citizens’ benefits. However, Ukrainians who arrived before April 1, 2025 will continue to receive the benefit.
The draft legislation estimates that the so-called “legal status change” will save around 730 million euros in 2026; with approximately 680 million euros benefiting the federal government and 50 million euros going to municipalities. In 2027, expected savings would drop to 320 million euros, of which 300 million euros would go to the federal level and 20 million euros to local governments. Additional savings are also anticipated in basic income support for the elderly and other living assistance programs.
However, these savings will be offset by significant additional costs for states and municipalities under the Asylum Seekers Benefits Act. According to the draft, these costs are projected at 862 million euros in 2026 and 394 million euros in 2027. The federal government plans to compensate the states for their additional expenses.
Despite the restructuring, the overall reform is not expected to generate financial savings for the federal budget. The reason, according to projections, lies in higher administrative expenses associated with implementing the Asylum Seekers Benefits Act.
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