EU Requires Increased Mass Migration to Enhance Economic Growth, Claims Central Banker

 According to Fabio Panetta, the governor of the Bank of Italy and a member of the European Central Bank Governing Council, the European Union needs to increase immigration to stimulate economic growth. He emphasized that rising migration is crucial for countering the economic challenges posed by declining birth rates and an aging population in EU countries, including Italy

"Fabio Panetta, the governor of the Bank of Italy and a member of the European Central Bank Governing Council, has argued that increasing immigration is a rational response to the economic challenges posed by declining birth rates and aging populations in the European Union. According to Bloomberg, Panetta stressed the need for a coordinated approach to managing the influx of legal migrants, balancing economic needs with social stability, and enhancing the integration of migrants into the education system and labor market.

Panetta highlighted Italy as one of the EU countries most in need of migration, noting its significant demographic challenges. Italy, along with Portugal, has the highest proportion of residents over 65 years old in the EU, at 24 percent. He emphasized that Italy requires well-designed migratory policies and increased labor participation from women and youth to boost economic productivity.

In contrast, conservative Prime Minister Giorgia Meloni, following the example of countries like Hungary and Poland, has advocated for investing in Italian families rather than relying on mass migration. Meloni's government has allocated 2.5 billion euros in its 2024 budget to support childbirth, including tax incentives for companies that support the social security payments of women with multiple children and those that provide job security for mothers.

Meloni asserted that focusing on family support is crucial, stating, 'There are people who have decided to bring a child into the world this year because today they see the institutions as being more attentive to the issue of the family. When we talk about government, about politics, we always talk about numbers. But we don’t deal with numbers, we deal with people’s lives, their hopes, their opportunities, their possibilities.'"

While evidence suggests that mass migration can boost a country’s Gross Domestic Product (GDP), its impact on the well-being of existing residents is less clear. Increased migration can drive up housing and product costs and depress wages due to an oversupply of labor. Although businesses, property owners, and politicians may benefit from the increased tax revenue generated by a larger workforce, GDP per capita—a key measure of citizens' economic well-being—often declines.

According to The Economist, the benefits of mass migration on GDP are evident, but they come at a cost to GDP per person, which reflects living standards more accurately. For instance, GDP per person has either decreased or stagnated for consecutive quarters in several countries: Australia, Britain, Canada, Germany, Iceland, and New Zealand. In Canada, output per person fell by 2% in 2023.

In Italy, the debate over citizenship laws adds another layer to the discussion on migration. Deputy Premier and Foreign Minister Antonio Tajani, representing the pro-business Forza Italia (FI) coalition, advocates for granting citizenship to foreign minors after completing some education in Italy. Conversely, Deputy Prime Minister Matteo Salvini of the populist League coalition argues that the country already grants a high number of citizenships—more than any other EU nation in 2022—and should prioritize other migration issues.

Salvini has called for stricter measures on citizenship, emphasizing the need for proficiency in the Italian language. He also suggested focusing on other pressing concerns, such as improving prison safety and implementing harsher penalties for certain crimes. 'I think we should focus more on proficiency in the Italian language… quite a few people acquire citizenship without speaking a word of Italian,' Salvini said."