Ifo Says German Government to Spend 21 Billion Euros on Refugees

  • Munich-based research institute doubles estimate for 2015
  • Calls for abolition of minimum wage so immigrants can work

The German government will need to spend 21.1 billion euros ($23 billion) on refugees in 2015, according to the Munich-based Ifo institute, which more than doubled its earlier estimate of 10 billion euros in the first 12 months.

The prediction assumes that 1.1 million people will flee to Germany by the end of the year. The spending would cover accommodation, food, childcare, schools, training courses and administration, Ifo said in a statement on Tuesday.

As a consequence, Ifo said it’s calling for Germany’s minimum wage to be abolished for all workers, or at least for young employees without qualifications. The institute said the minimum wage deters hiring and is “particularly problematic” in the east of the country.

It also called for a “huge increase” in support for refugees in Syria’s neighboring countries, and “effective” entry checks at the German border.

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