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GERMANY AND UKRAINE

What a Russian victory in Ukraine would mean for Germany

For German residents, there is reason to fear a Russian victory in Ukraine. A new mass exodus of refugees would create bottlenecks in housing, childcare and schools, among other issues.

People mourn in Ukraine
At a funeral people applaud a combat medic of the Hospitallers volunteer battalion, who was killed in action in the Kharkiv region amid the Russian invasion of Ukraine. (Photo by Roman PILIPEY / AFP)

Recent news from Ukraine has been bleak. The surge in missile and drone attacks on Ukrainian power plants over recent weeks has plunged whole districts of the capital into darkness for hours on end.

Kyiv has outlined a five-point strategy to weather the storm, including electricity rationing, urging help from abroad, receiving more air defence systems, and overhauling the grid.

Ukrainian President Volodymyr Zelensky this week said Ukraine needed “quick” and “cost-effective” repair work ahead of winter.

“We need your equipment and financial support to respond now and maintain normal life,” he told a reconstruction conference in Berlin.

While a plan to use frozen Russian assets for war-torn Ukraine dominates G7 talks in Italy on Thursday, there are voices in Germany – especially among the far-right AfD party – that would rather Germany cut off all its support for Ukraine. But these pro-Russian positions, veiled as arguments for peace, tend to ignore how dramatically a Russian victory in Ukraine would shake Germany.

An investigation by Tagesspiegel looked at what exactly a Russian victory would mean for people living in Germany. Here are the main impacts.

Germany would need to dramatically increase military spending

Andreas Schwarz, the SPD budgeter responsible for the defence budget has warned that if Ukraine lost the war, Germany would be forced to spend even more money on defence in one fell swoop.

Russia would suddenly be at the NATO border in Europe feeling militarily superior.

German defence expert Roderich Kiesewetter suggests that Germany would run out of ammunition after a few days in the event of a direct war. Kiesewetter has called for at least three percent of Germany’s gross domestic product to be invested in armaments.

Germany has made efforts to up its defence spending recently, but it is still unclear if the country will maintain a two percent GDP target for defence spending going forward.

But a sense of urgent need to ramp up Germany’s military defences does seem to be growing. On Wednesday Defence Minister Boris Pistorius announced a plan to bring back conscription to the armed forces.

Recently, former British Armed Forces Minister James Heappey estimated that a Ukrainian defeat would cost the West collectively trillions of dollars.

READ ALSO: Is Germany gearing up to reintroduce compulsory military service?

Pistorius with members of the army

Ukrainian President Volodymyr Zelensky (centre left) and German Defence Minister Boris Pistorius (centre right) stand with Ukrainian and German soldiers during a visit to a military training area in Mecklenburg-Vorpommern, north-eastern Germany, on June 11, 2024. Photo by Jens Büttner / POOL / AFP

Higher prices

Ukraine is one of the largest agricultural exporters in the world and also has stocks of rare earths and critical minerals.

A Russian takeover of the country would likely spell massive price fluctuations for goods like Ukrainian grain – which would spell increased grocery prices in Germany as a start, according to many economic projections.

More war refugees in Europe

Migration researcher Gerald Knaus told the Tagesspiegel that a Russian victory in Ukraine could “turn another ten million people into refugees”.

In parts of eastern Ukraine, such as the metropolis of Kharkiv, Russia has been wearing down peoples’ will to stay with near constant bombardment. 

Hundreds of thousands of people living there regularly go without electricity due to destroyed substations and infrastructure. Kharkiv alone is home to 1.3 million, including 200,000 internally displaced persons.

According to Eurostat, since the beginning of the war, 4.3 million Ukrainians have fled to neighbouring European countries. At 1.27 million, Germany has taken in the majority.

READ ALSO: Two years later, two Berlin residents from Ukraine on how war affects their lives

Germany’s interior ministries don’t expect tensions to ease soon. The Federal Office for Migration (BAMF) continues its efforts to distribute refugees across the country, but there is no doubt that in many places resources are running thin.

Helmut Dedy, Chief Executive of the Association of German Cities has called on federal and state governments to provide more facilities.

Increased pressure on the welfare system

Many refugees from Ukraine, and indeed many refugees broadly, are dependent on state benefits for some period of time after arriving in Germany.

As of January the employment rate among refugees from Ukraine was around 25 percent. In December of last year 710,000 Ukrainians received citizen’s allowance.

Refugees are obliged to apply for a work permit in Germany before they can join the workforce. Additionally they face a language barrier, and many of their professional qualifications may not be immediately recognised.

School and day care spots running thin

Since the outbreak of Russia’s invasion of Ukraine, nearly 220,000 children and young people who have fled the country have enrolled in German educational institutions.

So far German states have managed to handle the situation relatively quietly, but there is reason to believe that further stress on the system would be more than it can take.

A Ukrainian student in a German classroom

A name badge with an Ukrainian name seen in an international class at the Max-Ernst comprehensive school (Gesamtschule) in Cologne. (Photo by Ina FASSBENDER / AFP)

The president of the North Rhine-Westphalian Teachers’ Association suggests that the region he represents is already at its limit.

The German Association of Cities and Towns and the Association of Towns and Municipalities (DStGB) have also identified a shortage of school and day care places, as well as shortages of language courses and staff for integration services.

Germany’s educational system has already shown signs of stress – in the form of teachers’ strikes and school dropouts – before an additional influx of students are added into the mix.

Exacerbating the housing shortage

In response to the initial wave of incoming Ukrainian refugees, a section of the Building Code was enacted which allowed for the construction of new refugee accommodation without a development plan.

In some places, especially in parts of eastern Germany with growing vacancies, the influx of Ukrainians actually helped to stabilise the housing market.

But in cities where a severe shortage of housing has already been growing for years, there is no doubt that any number of incoming residents only adds stress.

Such is not only the case in popular cities like Berlin, Hamburg or Munich. In Mecklenburg-Western Pomerania, for example, the local Ministry of the Interior sees municipalities facing a major challenge in providing housing.

READ ALSO: ‘Tense housing situation’: Why a Berlin renter can’t be evicted for two years

German defence expert Roderich Kiesewetter emphasises that the aforementioned impacts on German life are not yet a foregone conclusion. He told Tagesspiegel that Ukraine could still defend itself and restore its 1991 borders according to international law, “But only if we support them accordingly and stop setting red lines for Ukraine and us”.

With reporting by AFP.

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GERMANY AND UKRAINE

German politicians want to cut benefits for Ukrainian refugees

A growing number of FDP and CDU/CSU politicians have called for the end of Bürgergeld - Germany's long-term unemployment benefit - for Ukrainian refugees. Here's the background on the debate.

German politicians want to cut benefits for Ukrainian refugees

FDP Secretary General Bijan Djir-Sarai is calling for reduced state benefits for Ukrainians fleeing the Russian war of aggression to Germany. 

“Newly arriving war refugees from Ukraine should no longer receive Bürgergeld in the future, but should fall under the Asylum Seekers Benefits Act,” FDP Secretary General Bijan Djir-Sarai told the Bild newspaper.

Similar demands have repeatedly come from the conservative CDU/CSU as well as the pro-business Free Democratic (FDP) parliamentary group.

Bürgergeld, or citizens’ allowance is a long-term unemployment benefit which amounts to €563 per month. It is granted to Ukrainian refugees when they register in Germany if they are unemployed, as opposed to a €460 per month benefit which is granted to all other asylum seekers who successfully apply for it. 

Other asylum seekers also face more obstacles entering the labour market. 

What’s the debate around Bürgergeld for Ukrainian refugees?

Brandenburg’s Interior Minister Michael Stübgen (CDU) criticised the payment of citizen’s allowance to Ukrainian refugees, suggesting that the benefit disincentivises incoming Ukrainians from taking up work. 

FDP’s Djir-Sarai told Bild: “We have a shortage of workers everywhere – for example in gastronomy, construction or care. We should no longer finance unemployment with taxpayers’ money, but must ensure that people get into work.”

The labour market policy spokesman for the SPD, Martin Rosemann, disagrees, countering that citizen’s allowance and access to Germany’s job centres gives Ukrainian refugees the necessary support they need to access the labour market.

According to the Federal Office for Migration and Refugees (BAMF), 80 percent of Ukrainian refugees in Germany are women. Just under half of these live with children who are minors, and the majority have no partner with them.

Last autumn, the German government announced an effort to enable refugees to find work more quickly. The plan involved placing 400,000 refugees in jobs directly from their language courses, including around 200,000 from Ukraine. According to figures from April, about 160,000 Ukrainian refugees have been brought into work since the beginning of the Russian war of aggression.

Recent EU election results showed a strengthening of far-right and far-left parties that have been critical of Germany’s economic and military support of Ukraine. 

READ ALSO: ANALYSIS – What do Germany’s far-right gains in EU elections mean for foreigners?

Whereas support for Ukraine and Ukrainian refugees has been largely supported by members of the traffic-light coalition, some members of CDU/CSU and FDP parties may be repositioning themselves on the issue in light of a perceived shift in public opinion.

Different systems for refugees in Germany 

Since the beginning of Russia’s war against Ukraine, some have criticised what they see as a two-tiered asylum system in Germany, where war refugees coming from countries such as Syria, West Asia or Africa face a longer and more complicated asylum-seeking procedure.

One example of this is seen in the granting of citizen’s allowance. Refugees from Ukraine have been able to receive basic security benefits in Germany since June 2022 (then Hartz IV, now citizen’s allowance) – instead of the lower benefits granted by the Asylum Seekers Benefits Act. 

According to state and federal actors, the reason for this difference was that refugees from Ukraine are directly entitled to a residence permit and do not have to wait for a decision, as is the case with asylum seekers.

Ukrainians who land in Germany are also permitted to work immediately. As with other residents, they are only entitled to Bürgergeld if they have low income or no income.

READ ALSO: ‘Happy to work here’ – How refugees in Germany are helping labour shortage

With reporting by DPA.

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