Immigrants Make a Big Contribution to Germany!
Contrary to the debate about the burden of social welfare, immigration in Germany contributes a three-digit billion euro sum to the state coffers every year. A study prepared by Prof. Martin Werding of Ruhr University for Mediendienst Integration reveals that increasing net annual immigration by another 200,000 people would reduce the federal budget deficit by €104 billion. This means that each new immigrant contributes an average of €7,100 in net income to the state through taxes and contributions.
The report also calculates that in a high immigration scenario, public spending as a percentage of GDP, due to demographics including pensions, health, and care, would decrease from 35.3% to 32.4% in 2070. This difference shows that immigration alone can alleviate the financial pressure on the state caused by an aging population.
INTEGRATION COSTS ARE DWARFED
The apparent economic burden on Germany largely stems from initial integration and social welfare expenses paid to asylum seekers entering the country. The federal government alone allocated €1.2 billion in 2024 for integration courses and adult immigrant counseling. However, these expenditures are more than offset by increased tax and contribution revenues from economic growth. According to the new report, the participation of young immigrants in the workforce is expected to significantly reduce the deficit in the pension system.
APPLICATION NUMBERS: NOT A CRISIS, BUT AN OPPORTUNITY
The data actually contradicts what is frequently stated in public discourse. According to BAMF statistics for February 2025, 26,674 initial asylum applications were received in the first two months of the year. This represents a 43% decrease compared to the previous year. Despite this, the pressure on housing and infrastructure is constantly on the agenda of local politics. The plan to accommodate 300 asylum seekers in a former factory building in Rott am Inn, Bavaria, has already become a symbol of protests ahead of the upcoming federal elections. Such news also contributes to the increase in votes for the far-right AfD party.
In May, the EU Commission provided an additional €3 billion in funding to accelerate the implementation of the Migration and Asylum Pact. This brings the total migration budget for the 2025-2027 period to over €14 billion. At the same time, Berlin is bringing up discussions about stricter border controls and cuts in social welfare. This risks making Germany an “unwelcome country” in the eyes of highly skilled professionals, i.e., qualified immigrants, while also deepening the chronic labor shortage.
Despite DIW President Marcel Fratzscher’s analysis titled “Immigrant phobia could cost us hundreds of billions of euros,” some states are basing their election campaigns on border controls and aid cuts. Economists agree that “This double talk makes Germany expensive in the eyes of both investors and immigrants.”
The data proves that immigration is an investment, not a cost; every new immigrant immediately contributes positively to public revenues through their payroll and consumption. The political rhetoric emphasizing short-term integration costs overshadows the long-term return of +€104 billion.
