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Local Germany
25-04-2025
- Politics
- Local Germany
How German ministers want to boost skilled migration and integration
At a time when populism and anti-migrant sentiment is on the rise in Germany, the Conference of Integration Ministers (IMK) sought to reaffirm the importance of immigration in German society. Following the two-day meeting in Göttingen on Wednesday and Thursday, the ministers unanimously adopted a motion titled "Living Together, Working Together" to demonstrate their commitment to diversity. In it, the state leaders emphasise that everyone - regardless of their background - should be able live together in peace and security and participate in society. According to the ministers, active participation in working life is a key part of this goal. The immigration of skilled workers should be promoted just as much as the education and utilisation of the domestic workforce, argued Lower Saxony's integration minister and conference chair Dr. Andreas Philippi. 'In order for this to succeed, advisory and support structures for the immigration and recruitment of skilled workers must be strengthened,' he said. READ ALSO: Where to get free immigration advice in Germany Here are some of the key policies set forward at this year's conference. Recognising the value of immigration Due to demographic changes - and particularly the aging population - the IMK motion highlights the importance of foreign workers within the German economy. 'Unfortunately, the current public debate focuses on the challenges of migration," said Philippi. "This one-sided perspective leads to an increase in resentment toward people with a migration background and undermines their trust in our state and society. Yet we depend on migration if we want to defend our prosperity.' Advertisement According to Philippi, the public discussion should be more pragmatic and instead focus on the "opportunities of immigration". The conference also pledged to recognise the contribution made by guest workers from countries like Turkey, Spain, Italy and Greece as part of Germany's immigration history. More women in the labour force In future, the ministers want to see a much higher proportion of migrant women participating in the workforce. 'In all measures, the specific needs and competencies of immigrant women must be taken into account structurally, as their employment rate remains significantly lower than that of immigrant men even after several years of residence," said Stefanie Drese, the integration minister for Mecklenburg Western-Pomerania. 'We need new formats of job placement, stronger cooperation with businesses, and better integration management.' A doctor reaches for a scalpel during an operation at a hospital in Hamburg. Germany is trying to attract skilled workers intot the country. Photo: picture alliance / dpa | Daniel Reinhardt Drese also highlighted the importance of services such as regional 'Welcome Centres' , which help foreigners get set up on arrival in the country. A number of these have already been set up in cities like Berlin, Hamburg, Freiburg, Essen, Stuttgart, Heildelberg and Munich. READ ALSO: How Munich wants to make settling in Germany easier for non-EU skilled workers Stable funding from the federal government With a new CDU/CSU and SPD coalition entering office on May 6th, state ministers are calling on the government to stump up more financial support. "At the very least, however, there must be no more debates about financial cuts, as was the case in the past," said Philippi. "The federal states and local authorities need planning security here." However, the ministers also state in their resolution that integration is a joint responsibility between the national government, states, local districts, businesses and civil society. Advertisement Better integration services for foreigners To ensure a smoother journey for internationals moving to Germany, the conference is eyeing a number of improvements to integration services. One proposal is for needs-based funding for migration counselling, allowing foreigners easier access to advice and personalised support. READ ALSO: The organisations in Germany that are helpful for foreign residents The ministers are also keen to improve access to the labour market and boost the provision of language courses for foreigners. The ministers also celebrated a number of successes in immigration policy over the past year, including the introduction of Germany's dual nationality law, lower residence requirements for naturalisation, and the opportunity for people on temporary permits to take part in integration courses.
Yahoo
05-03-2025
- Business
- Yahoo
Factbox-What Germany's planned spending spree could mean for the economy
BERLIN (Reuters) - Germany is in for a massive ramp-up in spending under an agreement by the parties hoping to form its next government, with a 500 billion euro special fund sought for infrastructure and plans to unshackle defence investment from its debt rules. Here is what the plans might mean for growth and debt in Europe's largest economy: CAN THE SPENDING BOOST GERMANY'S AILING ECONOMY? See for yourself — The Yodel is the go-to source for daily news, entertainment and feel-good stories. By signing up, you agree to our Terms and Privacy Policy. According to economists, yes. The IMK economic institute currently expects the German economy to eke out barely 0.1% of growth this year, after two consecutive years of contraction in 2023 and 2024, but said the new proposals could make a big difference. "If the financial package is implemented quickly, a significant acceleration in growth can already be expected in the second half of the year, and growth for the year as a whole could already move noticeably away from stagnation," said IMK's economic director Sebastian Dullien. Germany could even reach growth rates of 2% in the coming years provided there are no new shocks, Dullien said. WHICH SECTORS ARE SET TO PROFIT MOST? The construction sector can look forward to a boost from the fund to overhaul Germany's creaking infrastructure. Shares in Heidelberg Materials rose by some 14% on Wednesday. Bilfinger saw a 20% spike and Hochtief shares were up 12%. The defence industry also stands to gain. Under the prospective coalition's plans, Germany's strict cap on borrowing known as the 'debt brake' would be amended in the constitution to exempt defence expenditure above 1% of economic output. This in effect would mean no upper limit on larger defence spending plans. German defence companies Rheinmetall, Hensoldt, Thyssenkrupp and Renk have notched up gains so far this week of between 16% and 35% on the proposals. HOW MUCH MORE DEBT WILL GERMANY TAKE ON? A lot. Last year, Germany's debt ratio stood at around 64% of gross domestic product, far lower than that of other major industrialised countries such as the United States and France. Commerzbank chief economist Joerg Kraemer expects that level to climb noticeably in the coming years - by around 10 percentage points due to the new special fund alone. Increasing defence spending would push up the debt ratio even further, by an extra 2.5 points annually if, for example, it was ramped up to 3.5% of gross domestic product. "In 10 years, the overall government debt ratio could rise to 90%, although this also depends on inflation and is therefore not easy to predict," Kraemer said. "This would mean that Germany would quickly join the ranks of the EU's highly indebted states," ZEW economist Friedrich Heinemann said. He predicts Germany's indebtedness could even surpass the 100% mark in 2034. WOULD THIS COST GERMANY ITS TOP CREDIT SCORE OF AAA? Not necessarily. The spending plans could increase Germany's debt level to around 72% of gross domestic product by 2029, Scope analyst Eiko Sievert told Reuters - below the previous high of 80% seen in 2010 following the global financial crisis, when Germany was able to maintain its AAA rating. "Whether this remains possible in the coming years depends also on the implementation of necessary political reforms to strengthen competitiveness and economic growth," Sievert said. CAN GERMANY FIND ENOUGH LENDERS? Germany's top credit rating makes it a sought-after borrower. However, higher interest rates would probably be needed to make German government bonds attractive to investors. "Investors are likely to demand higher risk premiums for German government debt," says Commerzbank's Kraemer. The yield on the 10-year German government bond rose from around 2.5% to 2.7% as investors digested news of the debt and spending plans, indicating that interest costs for the state would likely rise. COULD GERMANY'S SPENDING SPREE INFLUENCE ECB POLICY? This could well be the case because pumping hundreds of billions of euros into the economy harbours inflation risks. "The ECB will have to take into account that inflationary pressure will rise again as a result of the planned expansionary fiscal policy in Germany," said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.
Reuters
05-03-2025
- Business
- Reuters
Germany's planned spending spree: what it means for the economy
BERLIN, March 5 (Reuters) - Germany is in for a massive ramp-up in spending under an agreement, opens new tab by the parties hoping to form its next government, with a 500 billion euro special fund sought for infrastructure and plans to unshackle defence investment from its debt rules. Here is what the plans might mean for growth and debt in Europe's largest economy: CAN THE SPENDING BOOST GERMANY'S AILING ECONOMY? According to economists, yes. The IMK economic institute currently expects the German economy to eke out barely 0.1% of growth this year, after two consecutive years of contraction in 2023 and 2024, but said the new proposals could make a big difference. "If the financial package is implemented quickly, a significant acceleration in growth can already be expected in the second half of the year, and growth for the year as a whole could already move noticeably away from stagnation," said IMK's economic director Sebastian Dullien. Germany could even reach growth rates of 2% in the coming years provided there are no new shocks, Dullien said. WHICH SECTORS ARE SET TO PROFIT MOST? The construction sector can look forward to a boost from the fund to overhaul Germany's creaking infrastructure. Shares in Heidelberg Materials ( opens new tab rose by some 14% on Wednesday. Bilfinger saw a 20% spike and Hochtief ( opens new tab shares were up 12%. The defence industry also stands to gain. Under the prospective coalition's plans, Germany's strict cap on borrowing known as the 'debt brake' would be amended in the constitution to exempt defence expenditure above 1% of economic output. This in effect would mean no upper limit on larger defence spending plans. German defence companies Rheinmetall ( opens new tab, Hensoldt ( opens new tab, Thyssenkrupp ( opens new tab and Renk have notched up gains so far this week of between 16% and 35% on the proposals. HOW MUCH MORE DEBT WILL GERMANY TAKE ON? A lot. Last year, Germany's debt ratio stood at around 64% of gross domestic product, far lower than that of other major industrialised countries such as the United States and France. Commerzbank chief economist Joerg Kraemer expects that level to climb noticeably in the coming years - by around 10 percentage points due to the new special fund alone. Increasing defence spending would push up the debt ratio even further, by an extra 2.5 points annually if, for example, it was ramped up to 3.5% of gross domestic product. "In 10 years, the overall government debt ratio could rise to 90%, although this also depends on inflation and is therefore not easy to predict," Kraemer said. "This would mean that Germany would quickly join the ranks of the EU's highly indebted states," ZEW economist Friedrich Heinemann said. He predicts Germany's indebtedness could even surpass the 100% mark in 2034. WOULD THIS COST GERMANY ITS TOP CREDIT SCORE OF AAA? Not necessarily. The spending plans could increase Germany's debt level to around 72% of gross domestic product by 2029, Scope analyst Eiko Sievert told Reuters - below the previous high of 80% seen in 2010 following the global financial crisis, when Germany was able to maintain its AAA rating. "Whether this remains possible in the coming years depends also on the implementation of necessary political reforms to strengthen competitiveness and economic growth," Sievert said. CAN GERMANY FIND ENOUGH LENDERS? Germany's top credit rating makes it a sought-after borrower. However, higher interest rates would probably be needed to make German government bonds attractive to investors. "Investors are likely to demand higher risk premiums for German government debt," says Commerzbank's Kraemer. The yield on the 10-year German government bond rose from around 2.5% to 2.7% as investors digested news of the debt and spending plans, indicating that interest costs for the state would likely rise. COULD GERMANY'S SPENDING SPREE INFLUENCE ECB POLICY? This could well be the case because pumping hundreds of billions of euros into the economy harbours inflation risks. "The ECB will have to take into account that inflationary pressure will rise again as a result of the planned expansionary fiscal policy in Germany," said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.
