The Nobel laureate who predicted the EU’s economic problems because of refugees

The Nobel laureate who predicted the EU’s economic problems because of refugees


Moscow. December 8. The prospects of the European economy deteriorates amid the influx of refugees from the Middle East, says the winner of the Nobel prize in economic Sciences 2015 Angus Deaton.

Migration crisis occurred too soon after the debt crisis in Europe, and this factor can seriously degrade the economic situation in the region, Deaton said in an interview with Bloomberg. “Obviously, there is a very serious risk” that the EU will bend under this pressure, he said.

Despite the fact that migration and the debt crisis in Europe on a similar scale, demographic problems associated with an unexpected influx of people into the region, are potentially more serious, because “no one has ideas on how to solve this problem,” said the expert.

According to Deaton, in the case of debt crisis “, people at least knew how to fight it”, although could not agree with each other.

The migration crisis at the same time with little economic growth is a dangerous cocktail, says Nobel laureate. “We see the growing inequality of people, and amid a slow economic recovery, and that’s a really terrible thing because it makes people fight against each other,” explained Deaton.

According to the forecast of the European Commission, Eurozone GDP in 2015 will increase only by 1.6% which is 1 percentage point worse than forecast for US.

The Greek economy is expected to shrink this year by 1.4% especially nasty forecast for the country, which became the first point of entry of hundreds of thousands of refugees from Syria, Iraq, and North Africa into Europe.

As reported, the Nobel prize was awarded to Deaton who is an employee of Princeton University, in October of the current year “analysis in the field of consumption, poverty, and welfare”.

Earlier, the head of the IMF Christine Lagarde said the influx of migrants to Europe can the EU bring economic benefits. “Preliminary estimates of the IMF show a moderately positive impact of inflows on economic growth in the EU”, – she declared.

The head of the IMF called on the rich countries of Europe to “expand approach” to take more refugees. According to Lagarde, when properly managed the flow of refugees “can bring benefits to host countries as it will increase the number of economically active population”, and it will help solve the problem of an aging population.

The invasion of migrants in Europe photos