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Policy Contribution

The case for a common European refugee policy

This Policy Contribution discusses the needs for a European migration policy, and considers where more policy coordination is actually needed.

By: and Date: March 20, 2017 Topic: European Macroeconomics & Governance

Legal and political issues left the management of the 2015-16 refugee crisis mostly in the hands of national governments, but this is incompatible with an integrated economic area that has largely abolished internal borders. It is also incompatible with some founding European Union principles, such as the existence of a common European policy on the mobility of people.

A greater role for European institutions and policies is needed both for policing the common borders and imposing common welcome policy standards for refugees, based on best practices. EU measures are also required to face the long-term problems related to immigration, as it is very likely that economic and demographic differences between the EU and neighbouring countries will lead to further crises in the future. Planning for this requires ample and dedicated resources, and a long-term strategy based on agreements with immigrants’ countries of origin, a task that no EU country can pursue alone.

Some progress has been made to strengthen the role of the EU, with the adoption of new directives, such as the Asylum Procedures Directive, and the establishment of the European Border and Coast Guard Agency. However, the situation is still far from satisfactory. There are major differences in refugee welcome and integration policies in EU countries, as shown by differences in asylum request outcomes in different countries and the different integration processes. There is also a serious lack of information about the skills and competences of refugees in different countries. This is a problem because this information is a necessary first step for an integrated welcome policy that might transform a challenge into an opportunity for aging European economies.

Such differences between EU countries are not only inequitable but also inefficient. They lead to massive distortions in the functioning of European labour markets and create incentives for refugees to seek asylum in specific countries. Moreover, the promise made by EU institutions of a refugee relocation programme is presently not being kept, leaving the countries of first entry to carry disproportionate burdens. Legal procedures are part of the problem because the Dublin Regulation, approved under different circumstances, obliges the first-entry country to examine asylum requests. However, political obstacles play the main role. EU countries are very different in terms of their cultural attitudes towards immigration and it is difficult to impose a common solution on them. Practical solutions, based on the countries that do not want refugees making compensation payments, are probably the most realistic avenues to follow.

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Opinion

Beyond border control, migrant integration policies must be revived

Border control and burden-sharing of refugees is just one aspect of immigration policies. Greater financial inclusion and the tailoring of regulations to refugees' specific needs would benefit not only the refugees themselves, but also native citizens.

By: Zsolt Darvas Topic: European Macroeconomics & Governance Date: February 23, 2018
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Past Event

Past Event

Integration of migrants in the EU

This event will discuss the integration of migrants in the EU as well as the EU's response to the recent refugee crisis

Speakers: Manu Bhardwaj, Herbert Brücker, Zsolt Darvas, Naika Foroutan, Marcel Fratzscher, Manjula M. Luthria and Guntram B. Wolff Topic: European Macroeconomics & Governance Location: Mohrenstraße 58, 10117 Berlin, Germany Date: January 29, 2018
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Blog Post

The ever-rising labour shortages in Europe

Historically high labour shortages in most central-eastern and north-western EU countries suggest that the immigration of central Europeans to north-west EU countries did not take away jobs from local workers on a significant scale. But as labour shortages now exceed their pre-crisis peak, several urgent measures must be considered to help to combat the problem.

By: Zsolt Darvas and Inês Goncalves Raposo Topic: European Macroeconomics & Governance Date: January 25, 2018
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Blueprint

People on the move: migration and mobility in the European Union

Migration is one of the most divisive policy topics in today’s Europe. In this publication, the authors assess the immigration challenge that the EU faces, analyse public perceptions, map migration patterns in the EU and review the literature on the economic impact of immigration to reflect on immigration policies and the role of private institutions in fostering integration.

By: Uuriintuya Batsaikhan, Zsolt Darvas and Inês Goncalves Raposo Topic: European Macroeconomics & Governance Date: January 22, 2018
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Podcast

Podcast

Inclusive Europe: a journey towards integration

How has immigration become an essential part of the EU? What incentives should be made to encourage EU intra-mobility? Why and how should we proceed to foster refugees' inclusion in the EU? Zsolt Darvas and Manu Bhardwaj of Mastercard Center for Inclusive Growth discuss the future of migration within the EU.

By: The Sound of Economics Topic: European Macroeconomics & Governance, Global Economics & Governance Date: December 14, 2017
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Blog Post

The challenge of fostering financial inclusion of refugees

Creation of a European identification for refugees and a pan-European registry would encourage better financial inclusion, along with clear guidelines about financial regulation and public-private partnerships

By: Zsolt Darvas Topic: European Macroeconomics & Governance Date: December 13, 2017
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Past Event

Past Event

Better policies for people on the move

This event discussed the impact and integration of migrants as well as national and European immigration policy challenges.

Speakers: Manu Bhardwaj, Elizabeth Collett, Zsolt Darvas, Eva Degler, Maria Demertzis, Arjen Leerkes, Rainer Münz, Matthias Oel, Alessandra Venturini and Guntram B. Wolff Topic: European Macroeconomics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: December 13, 2017
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Blog Post

Support for intra-EU mobility of people is on the rise

Europeans’ enthusiasm for immigration from other EU countries is steadily increasing –two-thirds of the EU population, on average, now support it.

By: Zsolt Darvas Topic: European Macroeconomics & Governance Date: December 12, 2017
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Blog Post

How the EU has become an immigration area

Natural change of EU28 population (the balance of live births and deaths) has fallen from high positive values in the 1960s to essentially zero recently, while the previous close-to-zero net immigration has turned positive and, since the early 1990s, become a more important source of population growth than natural increase

By: Zsolt Darvas Topic: European Macroeconomics & Governance Date: December 6, 2017
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Blog Post

German wages, the Phillips curve and migration in the euro area

This post studies why wages in Germany have not borne strong increases despite a relatively strong labour market. I list four reasons why announcing the death of the Phillips curve – the negative relationship between unemployment and wage growth – is premature in Germany. One of the reasons I report is substantial immigration from the rest of the EU.

By: Guntram B. Wolff Topic: European Macroeconomics & Governance Date: November 29, 2017
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External Publication

The economic effects of refugee return and policy implications

This paper looks at the question of returning asylum seekers and refugees from the economic perspective in the advanced countries that receive refugees: is return in their economic interest?

By: Uri Dadush Topic: European Macroeconomics & Governance, Global Economics & Governance Date: November 14, 2017
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Blog Post

Revision of the Posted Workers Directive misses the point

The Commission’s proposed revision of the Posted Workers Directive has been approved by the European Parliament’s Employment Committee, which welcomes the arrival of “equal pay for equal work”. But the revision will have little impact, and was largely unnecessary. Instead we should focus on the fight against bogus self-employment, social security fraud and undeclared work.

By: Zsolt Darvas Topic: European Macroeconomics & Governance Date: October 18, 2017
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