Economists Warn CSU's Deportation Plans Threaten German Economy
Economy / Finance

Economists Warn CSU’s Deportation Plans Threaten German Economy

Economic Experts Issue Stark Warnings Against CSU’s Proposed Migration Policy Shift

A growing chorus of leading economists are voicing serious concerns regarding the potential economic repercussions of a proposed hardening of German migration policy championed by the Christian Social Union (CSU) within the Bundestag. The CSU’s position paper, ahead of a crucial internal meeting, reportedly advocates for the large-scale return of Syrian refugees to their country of origin, a move experts warn could trigger a renewed economic downturn.

Jens Südekum, economic advisor to Federal Finance Minister Lars Klingbeil, directly cautioned against such broad-scale deportations in an interview with “Handelsblatt”. He emphasized Germany’s critical dependence on individuals with migrant backgrounds to sustain employment growth, particularly as the domestic workforce shrinks due to demographic trends. “In this situation, large-scale deportations simply do not make economic sense” Südekum stated.

Marcel Fratzscher, President of the German Institute for Economic Research (DIW), echoed this sentiment, labeling the CSU’s proposals a “serious mistake with enormous economic costs for Germany”. Fratzscher underscored that the vast majority of refugees who arrived in Germany since 2015 have integrated into the labor market and broader society, contributing significantly to the economy. He specifically warned that “a deportation offensive” could push the German economy back into recession by abruptly eliminating hundreds of thousands of jobs.

While Südekum acknowledged the validity of certain aspects of the CSU’s proposals, such as accelerating deportations of individuals unwilling to integrate or those with criminal records, he urged caution against overreach. He stressed that Germany is “essentially” reliant on immigration. “The labor market no longer functions in many areas without people from Syria and others” he explained.

Fratzscher further highlighted the increasingly crucial role refugees now play in vital sectors of the economy, noting their significant contribution to “systemically important professions” including healthcare and elder care. The economists’ warnings represent a direct challenge to the CSU’s political agenda, raising fundamental questions about the long-term economic consequences of restrictive migration policies during a period of demographic challenges and labor shortages. The debate signals a potentially significant point of contention within the governing coalition and underscores the growing divergence in perspectives on migration policy within Germany.