Migrant influx costs Europe, but economy could benefit

Germany expects up to 1 million asylum seekers this year alone. The upfront costs of housing, education and social care are considerable — but it could stimulate the economy, argues Christian Odendahl of the Centre for European Reform. "The refugee crisis in the short term will probably be beneficial for Europe, because Europeans have to loosen their fiscal orthodoxy a little, which probably helps the economy in the short term," he said.
Odendahl says many European countries — including Germany, Italy and France — face ageing, declining populations.
"In the long term, the refugee crisis of course poses a challenge, but also it has the potential to help Europe — or parts of Europe — solve their demographic problems. It depends on the extent to which Europeans will be able to integrate migrants, particularly into the labor markets."