Opinion: Let refugees work

According to estimates, mass granting of asylum status could cost Germany up to 10 billion euros ($11 billion) in 2016. That sounds like a large amount of money, but it is exactly the budget surplus generated by the federal government alone, thanks to stable economic growth and a high level of employment. Taking in refugees en masse means that it's doubtful the government will achieve its ambitious goal of attaining a balanced budget this year and next. But, even if it fails to do so, Germany should have little difficulty obtaining new loans in capital markets. Thus, there is no threat of tax hikes.

The 10 billion euros will be used to provide for the refugees, to develop accommodation facilities, and to pay fees for bus drivers, tradesmen, doctors, interpreters and other services. This constitutes a classic economic stimulus program, in which the government pumps funds into the domestic market. And, for a long time now, financially ailing countries in the eurozone have been asking Berlin to launch this kind of program. Indeed, the billions in tax money could have been invested in something more innovative than homes for asylum applicants and the macroeconomic benefits of the spending will ultimately not turn out to be great. But the acceptance of refugees will not cause any short-term socioeconomic damage.

In the medium term, however, the tide could turn once hundreds of thousands of people granted asylum are entitled to government services as a result. If they do not search for a job and end up making do with welfare and child care benefits, the costs for the government will go through the roof. One can only hope that people will not have traveled thousands of kilometers, crossing seas and borders, just to spend the rest of their lives being provided for by the German state.

Quickly and flexibly

The situation depends on more than just the newcomers' general attitudes. The government can also make things happen. Until now, asylum applicants in Germany have been barred from working. This outmoded practice goes back to the days before a shrinking population and an aging society became an ever-present socioeconomic issue.

Demographics have clearly shown that a workforce without skilled workers could jeopardize Germany's prosperity and pension system. Most refugees who have just arrived may not be the ideal candidates for current job openings, but at the moment, saving people is a priority and not recruiting workers. The 40,000 openings for vocational training prove that many unused capacities are available and that refugees can immediately begin job training.

Businesses obviously do not want to hire trainees who do not know whether they will stay in Germany, so the government has to speed up the processing of asylum applications. And it must also provide the decisive impetus needed to create social housing - which would include relaxing certain particularly tight standards. A construction boom in this field could also benefit the entire economy.

The faster the new German residents find work or training positions, the higher the chances are of at least partially allaying inevitable cultural and religious differences. But the course for the future must be set in the coming months, not years.

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