Pier Carlo Padoan said in a conference on the future of the European Union (EU) that it is facing unprecedented challenges. “Europe is experiencing an exceptional situation in which it is at risk perhaps like never before since it was created”.
Among the reasons for this perilous situation, Padoan cites the refugee/migrant crisis and the possibility of a Brexit. In fact, Padoan estimates that the border-free system collapsing could be a bigger threat than that posed by the eurozone crisis.
“The Schengen treaty is in doubt with the refugee emergency and that is more dangerous than the euro crisis of a few years ago” Padoan said adding that the reintroduction of internal border checks in the EU’s Schengen Area could cost between 5 to 18 billion euros per year, according to a hypothetical estimate made by the European Commission.
According to Pier Carlo Padoan there are four priorities currently for Europe: employment, refugees, security and Brexit.
Regarding the refugee crisis, Padoan believes “a long term, substantial economic contribution is required” but in fact he thinks that the relocation of refugees could be a demographic boost for Europe, also increasing drastically its productivity.