Germany is poised to revolutionize support for asylum seekers and refugees with the introduction of payment cards later this year. Several German states are gearing up to distribute pre-loaded payment cards. It is anticipated to roll out in summer or autumn, according to reports from the German press agency dpa.
With 14 out of 16 German states exploring the implementation of pre-paid cards, the initiative aims to alleviate financial strain for asylum seekers and refugees, facilitating essential expense coverage. While Bavaria and Mecklenburg-Vorpommern opt for alternative schemes, discussions persist even in these regions about incorporating some form of payment card system.
“Advocates see payment cards as boosting employment and integration. A Thuringian politician cited migrants’ positive outcomes, like job-seeking efforts and voluntary returns, per the Reutlinger General Anzeiger.”
In a bid to ensure responsible utilization of welfare funds, payment cards are designed for specific expenditures, such as groceries, curbing misuse. Lower Saxony’s leader Stephan Weil anticipates a dual benefit, foreseeing a reduction in municipal bureaucratic overhead and enhanced autonomy for asylum seekers in managing their finances.
Despite optimism, concerns linger regarding the effectiveness of payment cards. Professor Panu Poutvaara, from the IFO Center for Migration Research, emphasizes the need for comprehensive research to assess their impact. Expressing reservations, Poutvaara underscores potential loopholes, suggesting a nuanced approach to financial support based on prospects of asylum.
In addition to payment cards, researchers propose alternative strategies to enhance integration and address labor market demands. Proposals include expedited asylum processes for eligible candidates, coupled with investments in language training and vocational education to foster swift integration and alleviate workforce shortages across sectors. Additionally, easing residency restrictions could facilitate mobility and alleviate bureaucratic hurdles, enhancing employment prospects for asylum seekers and refugees.