This week we had the Valletta Migration Summit in Malta, with the participation of the EU member states and a number of other countries, mainly those from where the migrants are coming. The issue is mainly a political and a social one, and economic only to a smaller extent.
Moreover when we speak of migration, we are very often speaking of citizens of non-EU countries moving into the EU and not of citizens of EU member states who move to other EU member states. Thus, in my opinion there is a lack of clarity on the dimension, the impact and the implications of the issue.
The whole matter requires deeper thinking than what we have had so far. This is especially so in relation to the actual facts of the case as, all over Europe all too often, matters have been discussed on the basis of guesstimates, hunches and intuition. The migration issue has also been used to score political brownie points against political adversaries.
It is certainly not up to me to provide the definitive analysis of the migration issue. However, I would like to put forward some considerations, keeping in mind the economic dimension.
I accept that we cannot reduce the migration issue to just the economic dimension. Helping life remains sacrosanct irrespective of any economic dimension
One issue that immediately comes to mind is whether the European economy can absorb such a large inflow of migrants and whether the public finances of the various member states permit the expenditure required to provide asylum. Although one is making reference to the European Union, one recognises that the situation of each member state is different and so a single answer may not be the most appropriate.
Europe has an ageing population and as such needs an influx of people who are able to work if it wishes to sustain its economy. For some economies the shortage of labour may have become acute. I believe Malta is facing such a problem, when one considers the amount of persons who are registered as unemployed and the large number of non-Maltese already working here. In the Malta case, it is admitted that many of the non-Maltese working here are actually from other EU member states and as such would not classify as migrants.
On the other hand, the British government seems to be more worried about EU citizens (especially those from Eastern Europe) going to work in the UK than non-EU citizens. This is because EU citizens who go to live in other countries enjoy access to the same social benefits given to the citizens of the receiving country. Thus it becomes an issue of sustainability and the impact on public finances.
Some Eastern European EU members have objected to burden sharing on the migrants issue. From a political perspective it was all very shocking since their own citizens were migrants and were welcomed with open arms across the whole of the EU.
Could there be an economic reason why the Eastern European governments have taken such a view on the migration issue? Could it be that they feel threatened by migrants in the sense that if the Western European members accept more migrants, there would be fewer opportunities for them?
One of the solutions proposed is to seek to stop the flow of migrants at source. This would require heavy investment by the EU member states in several countries. Can the EU afford it? Would such an investment really generate wealth in such countries? Or will it just fuel corruption in these countries?
If businesses do start operating from such countries, will they find the required human resource? Will European businesses find a legal framework that would allow them to operate efficiently? Promoting investment in such countries may sound like a good political proposal – but does it make sense from the economic perspective?
I accept that we cannot reduce the migration issue to just the economic dimension. Human life remains sacrosanct irrespective of any economic dimension. Moreover one needs to remember that one of the principles of the EU is the principle of solidarity. Helping migrants is an issue of solidarity.
On the other hand, once we get beyond the question of saving human life and showing solidarity with those less fortunate than us – which are two non-negotiable points – within the whole of the EU there needs to be a deeper understanding of the economic issues involved in relation to migration.