Merz on the Mass Immigration That Was Supposed to Be a Win: 'Enormous Costs for Germany'

More than ten years after the record years of mass immigration in Europe, Germany’s Chancellor Friedrich Merz now describes the economic consequences in much harsher terms than those that shaped the debate at the time. While Angela Merkel declared “Wir schaffen das” – “We can do it” – Merz now says that the refugee crisis has brought “enormous costs” for Germany’s social security systems. As a result, welfare must be cut.

The statement was made in a lengthy summer interview with the German TV channel ZDF, where Merz was quizzed about the government’s economic reforms, strained public finances, and developments in the country.

When the conversation turned to the extensive welfare system reforms, the Chancellor highlighted the economic impact of migration and stated that the government believes it has brought the situation under control.

– We are convinced that we have managed to get the refugee crisis under control. It was also enormous costs, including for the social security systems, said Merz.

Germany was the country in Europe that received the most asylum seekers during the migrant crisis of 2015 and 2016. Angela Merkel’s statement “Wir schaffen das” came to symbolize Germany’s open approach during the refugee crisis and was quoted far beyond the country’s borders.

The debate in Sweden was also marked by a positive view of large-scale refugee reception. Then Prime Minister Fredrik Reinfeldt urged Swedes to “open your hearts”, while Stefan Löfven and the Social Democratic government repeatedly highlighted the importance of immigration for Sweden’s future skills supply, labor market, and economic development.

– It will be a benefit for society further down the line, Löfven asserted regarding mass immigration during an SVT debate.

Löfven and Reinfeldt. Photo: Frankie Fouganthin, CC BY-SA 4.0

Cutting Back Welfare

During the same period, voices critical of immigration were met with smears from the establishment. But now Germany’s chancellor is confirming the far-right ‘myth’ of enormous welfare costs.

In the interview with ZDF, Merz also defended the government’s extensive reform work, saying the goal is to slow the rising costs in the welfare systems. He referred, among other things, to reforms in health care and announced that changes to social assistance, social care, and the pension system will follow.

According to Merz, the limited fiscal space is a reason why the government can’t implement greater tax cuts than those already announced for low- and middle-income earners.

The fact that the German chancellor is now openly pointing to the economic costs of the migrant crisis is one of the clearest statements yet from a sitting head of government about the consequences of migration for public finances.

Germany's Chancellor Merz on the refugee crisis:

We have tried to get the refugee crisis under control, and I believe we have succeeded.

That also involved enormous costs for our social security systems. At the moment, we are trying to slow the rise in those costs, and that is… pic.twitter.com/6KLiixdgsk

— Clash Report (@clashreport) July 20, 2026