Germany is pushing the European Union to step up efforts to strengthen economic ties with Syria, saying that faster economic progress is essential to stabilizing the country after years of war, according to a policy paper sent to the European Commission.

In the document, seen by the German Press Agency (dpa) on Wednesday (March 18), officials in Berlin outline a series of proposals aimed at re-engaging economically with Syria. These include opening discussions with the European Investment Bank (owned by the EU's 27 member countries) about resuming operations in the country, dpa reported. The paper also highlights the possibility of easing trade conditions in industries such as agriculture and textiles, which are seen as vital for Syria’s recovery. Over the longer term, Germany suggests the EU could explore negotiating a more comprehensive cooperation framework with authorities in Damascus.

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Many Syrian refugees prefer to remain in Europe due to economic insecurity

Syria’s economy remains in a fragile state following more than a decade of conflict that forced millions to flee during the rule of former president Bashar al-Assad. He was removed from power in December 2024 by an Islamist-led rebel coalition after years of fighting. Members of that coalition now hold transitional power.

Many Syrian refugees living in Europe have not returned, citing ongoing economic hardship. Uncertainty also persists among minority communities such as the Kurds about their future under interim President Ahmed al-Sharaa. Al-Sharaa, who previously had ties to extremist groups, has renounced affiliations with both al-Qaeda and Islamic State. Still, some observers question whether he has fully broken with his past. The EU removed sanctions against him in November after he had earlier been listed under its terrorism framework.

Germany’s paper warns that without tangible economic improvements, Syria’s political transition could be at risk. It calls on the EU to place greater emphasis on reconstruction and economic support measures.

According to dpa, the news agency was told by diplomats that Germany’s position has backing from several other EU countries, including France, Italy, Sweden and Austria.

Rebuilding the country will require vast resources, with costs estimated at no less than 216 billion US dollars (around 188 billion euros), according to World Bank figures cited in the document. Economic indicators remain stark, however. Average income levels have fallen below the global benchmark for low-income countries, around a quarter of Syrians are living in extreme poverty, and roughly two-thirds fall below the lower-middle-income poverty threshold.

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Germany to return more Syrian refugees and rejected asylum seekers

Earlier this year, the German government said it plans to resume returns of Syrian refugees and rejected asylum seekers. Syrians who do not face individual persecution risks could lose protection status.

Germany resumed returns late 2025, after a suspension in place since 2011. The country is seeking to toughen asylum rules, and is also hoping that political and economic stability in Syria would curb the number of Syrians arriving in Germany.

In 2025, 5,976 Syrians applied for voluntary repatriation back to their home country, under a program funded by the German Federal Office for Migration and Refugees (BAMF). Of these, 3,678 of them have already gone back to Syria, according to BAMF.

With dpa