A recent study by economists from the University of Leiden, Netherlands, reveals that migrants cost European governments less than native citizens and, in many cases, provide a net positive contribution to public finances. This research challenges common misconceptions about the financial impact of migrants on EU countries.
The analysis, conducted by Giacomo Boffi, Eduard-Suari-Andreu, and Olaf van Vliet, examined data from 15 European countries, including Germany, France, Italy, Spain, Greece, Austria, Belgium, the Czech Republic, Estonia, Ireland, Lithuania, Luxembourg, Portugal, Slovenia, and Sweden. The study took into account various benefits such as social assistance and unemployment benefits, offset by the taxes paid by migrants.
The findings indicate that migrants in most European countries incur lower costs compared to native citizens. This counters the populist narrative that migrants heavily burden social security systems and public finances. According to Boffi, the study debunks the myth that migrants have a significant negative impact on public finances, showing instead that the opposite is true.
During the financial crisis, both migrants and natives saw a decline in their net contributions. However, migrants’ contributions quickly rebounded to pre-crisis levels, while the local population’s contributions lagged due to an increase in the number of retired individuals.
The study highlights that migrants are better integrated, increasingly well-educated, and earning more, which results in higher tax contributions. Given the aging native population, the role of migrants is becoming ever more critical. Boffi emphasizes that from an economic and financial perspective, there is no migrant crisis. Instead, Europe should consider its economic interests when shaping migration policies.
The research further reveals that natives hold a relatively more negative fiscal position compared to migrants in most countries, with a growing fiscal gap. This trend is particularly noticeable in Southern European countries, where migrants often serve as net contributors to public finances.