Germany targets welfare fraud by poorer EU citizens

The issue of such welfare fraud is particularly sensitive in Germany's most populous state North Rhine-Westphalia, which will elect a new state assembly in April.

As in several other recent state elections, the far-right Alternative for Germany is expected to improve its showing, although Chancellor Friedrich Merz's centre-right CDU still leads the polls there.

"Abuse of free movement of people (within the EU) is not acceptable" Leonie Gebers, a state secretary in the labour ministry, told reporters, adding: "Sadly this a problem seen across Germany".

Gebers was alluding to schemes where citizens of poorer EU countries are brought to Germany and  given substandard accommodation and fake work contracts so they can claim welfare payments.

"Their desperate state is used is used to claim benefits which then often end up in the pockets of the criminals behind the schemes," Gebers said.

The action plan outlined on Wednesday by the labour and interior ministries includes improved information sharing between the numerous official bodies involved.

Employers who give out bogus job contracts will also be made liable for paying back fraudulently obtained welfare payments.

The German government will also step up efforts to warn potential victims of such schemes in their countries of origin.