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It's not the Foreigners' Fault

Katja Hübschen (jp)September 21, 2004

Parties from the extreme right might be enjoying a popularity spurt triggered by widespread unemployment and resentment of foreigners, but statistics show immigrants aren't to blame for Germany's economic malaise.

https://p.dw.com/p/5bF7
Foreigners often shoulder the blame for economic woesImage: AP

As Germany's jobless rate hovers around 10 percent, both the National Party of Germany (NPD) and the German People's Union (DVU) have capitalized on spurious claims that foreigners deprive Germans of jobs that are rightfully theirs.

"Close the borders" was just one of NPD's xenophobic campaign slogans. The DVU demanded: "German Jobs for Germans!"

Boosting the economy with self-employment

The reality is very different. The German Economics and Labor Ministry, or BMWA, reported that in 1999, Germany's 55,000 self-employed Turks registered an annual turnover of €50 billion and created some 300,000 jobs, thereby providing a valuable boost to the economy. The total number of self-employed foreigners increased from 138,000 in 1989 to 280,000 in 2003.

Foreigners employed in Germany also contribute to its gross national product and pay into pension and health insurance schemes. According to Germany's RWI economic institute, the country's 7.3 million foreigners actually contribute some €15 billion more to society than they receive in state benefits.

Another prejudice is that foreigners send their earnings home rather than helping the German economy with consumer spending. Wrong again. According to the BMWA, in 1984 €9 billion was sent home by Germany's 1.6 million foreign employees. In 2003, their number had risen to 2.9 million, and they were sending home just €6.8 billion.

Hardly a life of luxury

There's equally little evidence to suggest that foreigners exploit Germany's generous welfare system and are all too happy to take something for nothing. An immigrant is only allowed to work after he or she has been resident in Germany for one year, but only if a German or an EU national is unavailable. In the meantime, all they're eligible for is a monthly allowance of €40 a month, plus €20 for every child.

"On top of this, they receive non-cash benefits such as accommodation and child-care, as well as one-off benefits, for example, after the birth of a child," explains Jochen Hajungs from the Government Office for Migration, Refugees and Integration. But it hardly affords the average family a life of carefree luxury.

Others, meanwhile, argue that immigration is exactly what Germany needs. Despite the problems with integration highlighted in the recent state elections, the country will increasingly depend on tens of thousands of new immigrants each year to supplement its aging, shrinking population.