Migrants and the Eurozone

By Miro Ehrfeld

           Political crisis in Syria and other war stricken areas have led to an unprecedented influx of asylum seekers throughout Europe within the last two months. With hundreds of thousands of migrants flooding through the European border, leaders are torn between stability and sympathy. The push toward the accommodation of refugees, by Germany especially, has edged the European economy into ever more unstable conditions. Having not fully recuperated from earlier issues in Spain and Greece, the fate of the Euro is now more unclear than ever.

As migrants slowly make their way to Germany through Croatia and Hungary, Germany is frantically trying to gage how to best receive thousands of migrants into a country with 80.6 million inhabitants. Furthermore, Germany already has an existing unemployment rate valued at 4.7% as of April 2015. With the Euro to Dollar ratio down forty cents from 2014 economists are scratching their heads as to how Europe will deal with the issue. The skill level demanded of the German workforce is very high which will make it difficult for migrants to secure well paying jobs. Fortunately, Germany provides a socialized education system that will benefit asylum seekers greatly.

When taken in context, this population increase could be beneficial to the German economy in the longterm. The reproduction rate of Germany today is 1.4 children per family. This migration counteracts the decreasing trend. Another indication of optimism in the Euro's future can be seen in the mass purchasing of depreciated Euros in anticipation of its inevitable rise. Although the economic situation appears to be perilous,  hopefully Europe will rise to the challenge both socially and economically.

 

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