Monday, September 07, 2015

Europe Split Over How to Tackle Migrant Crisis
Holly Ellyatt | @HollyEllyatt
CNBC.com

After a weekend in which tens of thousands of refugees were welcomed across northern Europe, the continent appears to be split on how to deal with the migrants crisis – with officials debating whether some countries can pay their way out of accepting the ever-increasing number of refugees, according to media reports.

On Saturday, Austria and Germany decided to allow thousands of migrants – many from war-torn Syria in the Middle East – into their countries coming from Hungary.

By Sunday, however, Austria said it planned to end those emergency measures after "intensive talks" with German Chancellor Angela Merkel and Hungarian Prime Minister Viktor Orban, who has opposed any relaxation of migrant controls fearing that it will only encourage more people to enter his country bound for more prosperous northern Europe.

"We have always said this is an emergency situation in which we must act quickly and humanely. We have helped more than 12,000 people in an acute situation," Austrian Chancellor Werner Faymann said, Reuters reported. "Now we have to move step by step away from emergency measures towards normality, in conformity with the law and dignity."

With many members of the public in Europe opposed to rising immigration, taking in more refugees is a controversial move for many governments in the continent.

Merkel has come under pressure from members of her conservative coalition to revoke the decision that has allowed an estimated 20,000 migrants, according to one German government official, to enter the country. Despite resistance to more immigration from within Germany's ruling coalition, it agreed on Monday to spend 6 billion euros ($6.68 billion) more on asylum seekers although it will tighten the rules on asylum seekers.

Also on Monday, Merkel said that Germany could handle 800,000 asylum seekers this year but could not continue at that rate, Reuters reported, and she called upon the rest of Europe to come up with a coordinated policy on asylum rights.

The move by the Austrian and German governments to waive border checks for migrants came as concerns over the migrant crisis reached a peak.

In particular, a highly publicized photograph last week of a Syrian toddler lying dead on a Turkish beach – which followed the deaths of 71 migrants who suffocated in the back of a truck en route to Austria -- highlighted to governments and the public in Europe the increasingly desperate attempts being made by migrants to reach Europe.

Last Friday, Germany and France urged other European countries to accept more refugees, calling for a "long-term and mandatory mechanism" to divide refugees among individual member states.

In a call to EU institutions, the countries proposed a standardized registration, reception and distribution of over 100,000 refugees throughout Europe, and for a more coordinated strategy to combat human traffickers.

By Monday, Hungary's Orban rejected the call for quotas proposed by the EU, saying that there was no point discussing such a move until the region could protect its borders, Reuters reported. He added that the EU should set up a fund to help third countries like Turkey to handle mass migration there.

Taking a hard line on the crisis, Orban also said that the large numbers of people fleeing to Germany should be seen as immigrants rather than refugees as they are seeking a "German life" and are refusing to stay in the first country they reach.

Also Monday, the Financial Times newspaper reported that European Commission officials are debating a proposal that would allow some European countries to pay money in order to opt out of a mandatory quota system for accepting up to 160,000 refugees. The Commission declined to comment on the report when contacted by CNBC.

Tina Fordham, chief global political analyst at Citi told CNBC Monday that many European leaders faced a difficult situation with public opinion shifting both in favor of helping immigrants and restricting immigration.

"This is a very tricky issue for political leaders and we see how many European leaders have been caught wrong-footed because they're very aware of the fact that populations in Europe are concerned about immigration and anti-immigration sentiment is high…however, the photo of the drowned toddler in Turkey caused a shift in public opinion," she said.

"(But) at what point does the need to respond to the human crisis turn into something much more about the concerns about unemployment and all of the other long-standing issues that people have."

- By CNBC's Holly Ellyatt, follow her on Twitter @HollyEllyatt. Follow us on Twitter: @CNBCWorld

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