The refugee crisis could boost the EU’s anemic growth by forcing governments to increase public expenditure, European Economic and Financial Affairs Commissioner Pierre Moscovici has said.
“This is a very emotional crisis and it is a political challenge of high importance, but if I look at the economics and just the economics, I’m persuaded that this can be an opportunity capable of driving 0.2 to 0.3 percent additional growth,” Moscovici said in an interview with CNBC over the weekend.
“Why? Due to the fact that we, especially Germany, have to address the welcoming and the integration of those who are moving away from regimes threatening their lives,” Moscovici said.
The eurozone’s combined government deficit is projected to drop to 1.9 percent of gross domestic product (GDP) this year, from an estimated 2.2 percent in 2015.