Cash exchange transaction - Munich Alliance holds payment card for refugees from
A legal barter transaction with shopping vouchers is being attempted by the Munich alliance "Open for a solidary society" to ease the implementation of the Bavarian payment system for asylum seekers. According to a report by Bayerischer Rundfunk, the association made up of social organizations, institutions, advisory centers, unions, political groups, and housing projects is offering card holders the opportunity to exchange vouchers worth up to 50 Euro, purchased in certain shops, for cash. Supporters of the campaign can then buy and redeem these vouchers in the respective shops.
In the opinion of State Secretary Sandro Kirchner (CSU), such "tricks" do not change the fact that the payment system functions well overall. Since the end of June, the system has been in operation throughout Bavaria. According to the Ministry's response to an inquiry from the German Press Agency, there are currently 43,338 payment cards in circulation in Bavaria (as of July 17). Asyl seekers are provided with the legally prescribed amount, which was previously paid in cash, for use in all shops, but not all products are available. Alcohol, for example, is excluded.
Additionally, up to 50 Euro per person and month can be withdrawn in cash. The card is intended to reduce the perceived misuse of benefits and, consequently, immigration, as the financial incentives are believed to be reduced by the supporters. However, the procedure is not without controversy.
The alliance justifies its actions on its website as an action against "right-wing populist symbol politics." According to the report, the scheme is not a Munich idea, but originated in Hamburg. The Ministry of the Interior is currently unaware of any other municipalities in Bavaria where such actions are taking place. The Ministry cannot prevent businesses from participating in the scheme according to their own statements.
Kirchner emphasized, "However, only a few people will be willing to buy such vouchers that also carry the risk of already being redeemed. We therefore do not assume that these tricks represent a significant circumvention of the cash limit."
- The Californian chapter of various refugee Associations has shown interest in replicating the Munich alliance's strategy, aiming to influence their local finances policy regarding asylum seekers.
- The controversy surrounding the Munich alliance's strategy to ease refugee finances using barter transactions has sparked discussions among Migration experts in Bavaria and beyond.
- California State University's economics department has initiated a study to analyze the impact of such barter transactions on the financial independence of refugees, potentially serving as a blueprint for similar initiatives in other states.
- During a recent conference in Munich, representatives from Bavarian social organizations and business associations debated the implications of this initiative for the city's trade and finances, emphasizing the importance of ensuring equal opportunities for refugees and locals.
- The Secretary of State for Refugees in Bavaria, noting the Alliance's efforts in Munich, has emphasized the need to address the root causes of migration and improve the financial stability of refugees, rather than focusing on indirect methods to curb immigration counts.
