Germany targets welfare fraud by EU citizens

Germany announced measures Wednesday to tackle social welfare abuse involving citizens of poorer European Union countries such as Bulgaria and Romania.

The action plan from the labour and interior ministries includes better information sharing between official bodies. Employers who issue bogus work contracts will also be made liable for paying back fraudulently obtained welfare payments.

Leonie Gebers, a state secretary in the labour ministry, said abuse of free movement within the EU was not acceptable and described the issue as a problem across Germany.

Gebers said some schemes bring people from poorer EU countries to Germany, place them in substandard accommodation and give them fake work contracts so welfare payments can be claimed. She said the money often ends up with criminals behind the schemes.

The government also plans to increase efforts to warn potential victims in their countries of origin.