Immigration and the refugee crisis – Can Europe rise to the challenge?

Unrest and natural catastrophes in the Middle East and North Africa have displaced a staggering number of people over the past decade, triggering an unprecedented wave of refugees to Europe. Coping with the refugee influx is a humanitarian challenge that calls for cooperative solutions among EU states, not the pursuit of short-term national interests seen in many cases. This chapter discusses the potential economic impact of the current refugee influx with a special focus on its labour market effects and its implications for public finances.