By Erik Kirschbaum
BERLIN (Reuters) - The German government presented a draft law on Wednesday to clamp down on "welfare tourists" from European Union countries by expelling fraudsters who abuse its generous social system and block their return for up to five years.
The two ministers who presented the law said that the new rules, designed to give relief to communities stretched by an influx of Romanians and Bulgarians arriving in Germany, would not hinder free movement in the EU nor violate EU rules.
Interior Minister Thomas de Maiziere told a news conference that the new law, based on recommendations made by a government panel in March, could take effect from 2015.
"We believe we can get control of this problem and yet at the same time maintain freedom of movement in the EU," he said.
Germany is magnet for EU citizens taking advantage of free movement thanks to its solid economy, high wages and low unemployment. Industry is also short of workers.
But there are also growing concerns of an influx of Romanians and Bulgarians fleeing poverty since these countries gained full access to the EU jobs market this year.
The number of Bulgarians and Romanians who arrived in Germany in January, when the rules changed, surged 80 percent to 9,850, according to a study by the Institut fuer Arbeitsmarkt und Berufsforschung (IAB) labour market research agency.
There were about 430,000 Bulgarians and Romanians living in Germany at the end of February, or about 5 percent the 7.7 million foreigners living in Germany. The numbers of new arrivals spiked higher in January.
Chancellor Angela Merkel's government says most Romanians and Bulgarians come legally to work or study but some pretend to be self-employed to get supplementary benefits, or claim child benefit with no real chance or intention of getting a job.
Last year the mayors of 16 cities such as Cologne, Hanover and Dortmund made a public plea for help in coping with unemployed immigrants from eastern Europe, many of whom are from the Roma minority.
De Maiziere and Labour Minister Andrea Nahles said on top of banishing those who abuse the system, citizens from EU countries could face prison sentences of up to three years or fines if they are convicted of making false or incomplete statements about their residency status.
Also, EU citizens will only get temporary residency permits and anyone seeking a residency permit of more than six months must first demonstrate they have prospects for a job. Germany would also impose closer bureaucratic controls on those seeking benefits.
Merkel's government will back efforts to relieve the towns and cities, which are chiefly responsible for the welfare of the new arrivals, with 25 million euros to help finance housing and heating costs.
"The aim is to stop abuse," Nahles said. "Every case of abuse erodes the public's support."
Germany's population grew for the third consecutive year in 2013 with the highest level of net migration in two decades and a sharp rise from eastern Europe.
(Editing by Alison Williams)
