The German Federal Government is planning to allocate 670 euros per month for each refugee and offer newcomers corresponding housing financing, the official website of the German government said.
The initiative will be an additional burden for German taxpayers, who already finance reforms in war-torn Ukraine as well as military operations abroad.
About 3.7 billion euros will be transferred to regional authorities to help them to overcome the difficult situation with the influx of new refugees, Bloomberg reported.
The new initiative is expected to be adopted on September 29, and come into force on November 1, after parliamentary approval, the agency said.
Merkel stressed that German regions are now facing enormous challenges and that the burden should therefore be fairly distributed among them.
Since the beginning of 2015 about 500 thousand migrants came to Europe, fleeing civil war and violence in their countries. The European Commission said that the current refugee crisis is the biggest since World War II.