Migrant crisis could cost Germany over a TRILLION pounds

Migrants could set the German economy back by more than a trillion pounds after last year’s wave of refugees, an economist had warned.

Financial economist Bernd Raffelhüschen claims the overall debt in Germany stands at €6.2 trillion, equivalent to more than £5trillion.

The western nation has experienced its longest boom since the sixties, as employment reached a new high and social security reported record revenues.

But Mr Raffelhüschen claims the tables could soon turn as Germany begins to take into account the cost of the refugee wave of 2015.

He states the long term costs of the original crisis totals around €878 billion, which threatens to soar up to €1.5trilllion depending on how well the “second generation” fits in with life in Germany.

Deutsche bank

Deutsche bank

Last year, according to the Federal Office of Statistics, 2.1million immigrants entered the country – of which more than half were refugees.

Now the economist claims a controlled immigration system to limit the flow of refugees could help to solve Germany’s economic problems.

He states that migrants will pay less into the system than native Germans during their lifetime, as foreigners living in the state create a negative fiscal balance.

Even though natives will receive higher pensions, since they on average have paid in more during their lifetime, overall the government can profit more from the Germans than from “foreigners”.

Mr Raffelhüschen said: “Politicians now have to ensure the best possible integration to at least curb the costs partly.

“Germany can’t afford uncontrolled immigration permanently.”

The foundation Marktwirschaft also believes Germany is not profiting from the strong wave of migrants.

A handful of €50 notes

The German economy could lose trillions over the 2015 migrant crisis


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By Sydney Chesterfield on July 21, 2016 · Posted in Reports, Trends

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