Can the refugee crisis make or break Europe?

Abstract

This panel discusses what is at stake in this dramatic refugee crisis and how Europe can manage it best and turn it into an opportunity despite the stark challenges that it poses. The refugee crisis of today is large and dramatic but is not unprecedented (see the Yugoslav wars in the early 1990s). The crisis is likely to have a mild positive economic effect (through increased consumption, plentiful and cheap labour force, increased funding/employment for reception and emergency aid) and a positive demographic effect (refugees are young people). However, these will be largely offset by the costs (for supporting and integrating the newcomers) and job competition (between the newcomers and the disadvantaged natives). It may also exacerbate xenophobia and strengthen the far right parties across Europe. Contributors to this panel discuss the challenges that the crisis raise for Europe and how we can best deal with it.