UK would lose at least half million jobs if vote to leave EU

A British Union flag flutters in front of one of the clock faces of the 'Big Ben' clocktower of The Houses of Parliament in central London

EASTLEIGH, England (Reuters) – Britain would lose at least half a million jobs within two years of a vote to leave the European Union and a fall in the value of the pound would push up inflation sharply, finance minister George Osborne said on Monday.

With a month to go until Britain holds its European Union membership referendum, Osborne said workers’ earnings, when adjusted for inflation, would be almost 3 percent lower in two years’ time, equivalent to a pay cut worth almost 800 pounds a year for someone working full time on the average wage.

Osborne was speaking as the finance ministry published a new report on the short-term implications of an “Out” vote.

(Writing by William Schomberg, editing by Kate Holton)

EU makes it easier to suspend visa-free travel amid immigration worries

A barbed wire is seen in front of a European Union flag at an immigration reception centre in Bicske

By Gabriela Baczynska

BRUSSELS (Reuters) – European Union ministers on Friday backed making it easier and faster to suspend visa waiver with third countries and said relaxing travel rules for more states was not imminent amid deepening public concern about immigration into the bloc.

The EU is in politically sensitive talks with Ankara on easier travel requirements for Turks seeking to visit Europe for up to three months and with no right to work.

The 28-nation bloc is planning the concession as part of a deal whereby Turkey helps curb the influx of migrants and refugees to Europe. But some EU states are anxious about opening up to a mainly Muslim nation of 79 million people.

To assuage such concerns, the EU is beefing up a mechanism that allows it to suspend visa waiver with any of some 60 countries that have such agreements in place. The plan, endorsed by 28 EU interior ministers on Friday, enjoys backing in the European Parliament, which must sign off on it as well.

“Visa liberalization has great advantages for the EU and third countries,” said Klaas Dijkhoff, migration minister for the Netherlands, which now holds the bloc’s rotating presidency.

“Yet we need… to make sure that visa liberalization cannot be abused. I’m pleased that we agreed today on a mechanism that makes it easier to act against abuse.”

As well as Turkey, the EU is currently working on lifting visas for citizens of Ukraine, Georgia and Kosovo. Countries which already enjoy such travel benefits include Japan, the United States, South Korea, Venezuela, Israel and Canada.

NO MORE VISA LIBERALIZATION SOON?

German interior minister, Thomas de Maziere, said the EU should not grant visa-free travel to more countries until the suspension mechanism is in place. His French colleague, Bernard Cazeneuve, said more relaxed travel rules for the four countries were not a matter “of the coming weeks and months”.

Dijkhoff said the 28 ministers agreed that the four candidates must meet all criteria given to them by the EU to enjoy visa-free travel and that, while they were capable of eventually doing so, that was not the case yet.

In proposing extending the EU visa-waiver program to the four countries, the bloc’s executive European Commission said Ukraine, Georgia and Kosovo had already fulfilled their requirements, while Turkey was due to meet them by end-June.

But diplomats from EU states differ on whether that is the case, with most agreeing though that at least Georgia has done its homework in full.

Visa liberalization for Turkey, a key puzzle in the broader migration collaboration, has now been pushed back to July or, more likely, the autumn, sources told Reuters.

The new safety mechanism cuts to two months from six now the period after which a country can seek to suspend visa-waiver if it sees a sharp rise in overstays, asylum requests or readmission refusals from a non-EU state that has had travel rules relaxed.

The changes would apply to the countries of Europe’s free-travel Schengen zone, which comprises most EU states and several non-EU ones, such as Norway. Britain and Ireland are not part of the Schengen area and would not be affected. Immigration is a top issue in Britain’s June 23 vote on whether to leave the EU.

(Additional reporting by Tom Koerkemeier, Editing by Ralph Boulton)

Smugglers made over $5 billion off migrants in 2015

A Turkish Gendarme officer detains a man believed to be a smuggler as Syrian refugees who are prevented from sailing off for the Greek island of Lesbos by dinghies wait in the background near a beach in the western Turkish coastal town of Dikili, Turkey, March 5, 2016.

GENEVA (Reuters) – People smugglers made over $5 billion from the wave of migration into southern Europe last year, a report by international crime-fighting agencies Interpol and Europol said on Tuesday.

Nine out of 10 migrants and refugees entering the European Union in 2015 relied on “facilitation services”, mainly loose networks of criminals along the routes, and the proportion was likely to be even higher this year, the report said.

About 1 million migrants entered the EU in 2015. Most paid 3,000-6,000 euros ($3,400-$6,800), so the average turnover was likely between $5 billion and $6 billion, the report said.

To launder the money and integrate it into the legitimate economy, couriers carried large amounts of cash over borders, and smugglers ran their proceeds through car dealerships, grocery stores, restaurants or transport companies.

The main organizers came from the same countries as the migrants, but often had EU residence permits or passports.

“The basic structure of migrant smuggling networks includes leaders who coordinate activities along a given route, organizers who manage activities locally through personal contacts, and opportunistic low-level facilitators who mostly assist organizers and may assist in recruitment activities,” the report said.

Corrupt officials may let vehicles through border checks or release ships for bribes, as there was so much money in the trafficking trade. About 250 smuggling “hotspots”, often at railway stations, airports or coach stations, had been identified along the routes – 170 inside the EU and 80 outside.

The report’s authors found no evidence of fighting between criminal groups, but larger criminal networks slowly took over smaller opportunistic ones, leading to an oligopoly.

In 2015, the vast majority of migrants made risky boat trips in boats across the Mediterranean from Turkey or Libya, and then traveled on by road. Around 800,000 were still in Libya waiting to travel to the EU, the report said.

But increasing border controls mean air travel is likely to become more attractive, with fraudulent documents rented out to migrants and then taken back by an accompanying facilitator, the report said.

Migrant smuggling routes could be used to smuggle drugs or guns, and there was growing concern that radicalized foreign fighters could also use them to enter the EU, it said.

But there was no concrete data yet to suggest militant groups consistently relied on or cooperated with organized crime groups, it added.

($1 = 0.8837 euros)

(Reporting by Tom Miles)

EU border agency says migrant arrivals in Greece drop 90 percent

A group of migrants and refugees who stayed in Idomeni makeshift camp walks through a field in attempt to cross the Greek-Macedonian border near the village of Evzoni, Greece,

BRUSSELS (Reuters) – The number of migrants arriving in Greece dropped 90 percent in April, the European Union border agency said on Friday, a sign that an agreement with Turkey to control traffic between the two countries is working.

The agency, Frontex, said 2,700 people arrived in Greece from Turkey in April, most of them from Syria, Pakistan, Afghanistan and Iraq, a 90 percent decline from March.

Under the EU’s agreement with Turkey, all migrants and refugees, including Syrians, who cross to Greece illegally across the sea are sent back.

In return, the EU will take in thousands of Syrian refugees directly from Turkey and reward it with more money, early visa-free travel and faster progress in EU membership talks.

In Italy, 8,370 migrants arrived through the longer and more dangerous route from northern Africa, Frontex said. Eritreans, Egyptians and Nigerians accounted for the largest share.

There was no sign migrants were shifting from the route to Greece to the central Mediterranean route, Frontex said. The number of people arriving in Italy in April was down 13 percent from March and down by half from April 2015.

That particular statement was contested by the Norwegian Refugee Council, an Oslo-based humanitarian agency. It cited Thursday’s announcement by Italian coastguards that they had helped rescue 801 people, including many Syrians, from two boats heading from Northern Africa to Italy.

“This might be a first sign of Syrian refugees now choosing the much more dangerous route across the Mediterranean from Northern Africa to Italy, in search of protection in Europe,” said Edouard Rodier, Europe director at the council.

“If this continues, the EU-Turkey deal is not only a failure, but may also result in more deaths at sea,” he said in an statement emailed to Reuters.

(Reporting by Robert-Jan Bartunek in Brussels and Gwladys Fouche in Oslo,; editing by Philip Blenkinsop, Larry King)

German ‘godfathers’ reunite Syrian families

German godfather receives presents

By Joseph Nasr

BERLIN (Reuters) – Three days after an emotional reunion with his younger son in Berlin, a 71-year-old Syrian handed a bar of olive oil and laurel soap, a hand-made wall hanging and a box of pistachio sweets to a 56-year-old German he had never met before.

The gifts were from Aleppo, the city devastated by five years of war which he and his elder son had been able to leave thanks to the German, engineer and father of four, Martin Figur.

Figur is one of the “Godfathers for Refugees”, matched with the family by a non-profit organization of the same name that seeks sponsors to help Syrians already in Germany to bring their relatives here.

“During the war, the Germans – government and people – have shown they are closer friends of the Syrian people than the Arabs,” the Syrian father told Figur at their meeting, which was witnessed by Reuters. He declined to give his name to protect relatives still living in the fiercely contested city.

Tight border controls across Europe, stricter asylum rules, and an EU-Turkey deal to clamp down on migrant sea crossings to Greece have left many Syrians in Germany struggling for ways to help relatives still in their homeland make it to safety.

The arrival of more than a million migrants into Germany last year prompted the German government to tighten asylum rules, including a two-year ban on family reunions for those granted limited refugee status, making the situation worse.Martin Keune, the owner of an advertising agency, founded Godfathers for Refugees last year after two Syrian asylum seekers he was housing begged him to help them bring in their parents.

Keune was inspired by the story of his wife’s Jewish uncle, who survived the Holocaust thanks to a British couple who adopted him while the rest of his family were sent from Berlin to the Nazi death camp in Krakow, Poland, where they perished.

At Berlin’s Schoenefeld airport on Saturday, the Syrian father’s younger son Mohannad, who has been in Germany since 2006, held back tears as he greeted his father and brother.

“You look exhausted, but healthy and you are breathing and that is the most important thing,” he said, pressing his hand on his father’s arm.

DESPERATE

Mohannad, 36, came to Germany ten years ago on a cultural exchange program and had been trying to reunite his family since 2012.

“When I started looking into laws on family reunions, I became desperate,” he said.

His net monthly salary at a Berlin-based charity for refugees is less than the minimum of 2,160 euros ($2,460.24) the authorities say a sponsor must earn to bring in just one family member. That is about the average net salary in Germany.

Since March 2015, the Godfathers’ group has found sponsors for 103 Syrians, two-thirds of whom are already with family members in Berlin. The rest are waiting to receive two-year residency permits at German consulates in Lebanon and Turkey.

The association can only sponsor Syrians who have at least one close family member, such as a spouse, a child, a parent or a sibling, who has been in Germany for at least one year.

It relies on crowd funding and donations from its 2,200 members to raise the 800 euros a month it needs for each Syrian. This covers rent, health insurance, and a 400-euro stipend, equal to what the government pays unemployed Germans.

The godfathers do not fund the Syrian newcomers directly but take on legal liability for their living costs for five years even if in the meantime they apply for asylum and are granted full refugee status.

Figur signed a “Declaration of Commitment” at the Foreigners’ Registration Office in Berlin accepting liability for Mohannad’s father, brother as well his mother, who is still in Aleppo.

Germany took in some 1.1 million migrants last year, and of the more than 470,000 asylum applications filed over that period the largest group were Syrians, making up 35 percent.

The influx has fueled the rise of the anti-immigration party Alternative for Germany (AfD), which entered three state parliaments in elections in March by luring voters angry with Chancellor Angela Merkel’s welcoming approach toward refugees.

“I can only encourage people to make contact with refugees, because only then will their attitudes change,” said Figur, a Catholic, commending Merkel’s courage in the refugee crisis.

A ceasefire in Aleppo, Syria’s largest city and its main commercial center before the war, has held since last week, making it easier for father and son to leave by land to Lebanon and on to Germany, a 20-hour journey.

They know they are lucky and hope mother, daughter and grandson – who have stayed behind at the wish of the son-in-law – will be able to join them soon in Berlin.

They described the gifts to Figur as a gesture of gratitude for “helping strangers”.

“Martin Figur helped us even though he did not know us,” said Mohannad’s brother, 38, pointing at his “godfather” with a smile. “And this is what I want to do in the future, help others.”

($1 = 0.8705 euros)

(Editing by Philippa Fletcher)

Ex NATO and U.S. defense chiefs warn U.K. against an EU exit

Former NATO secretary-general Fogh Rasmussen speaks during a meeting with Ukrainian President Petro Poroshenko in Kiev,

LONDON (Reuters) – Former NATO secretary generals warned on Tuesday that a British exit from the European Union would help enemies of the West while ex-U.S. foreign and defense chiefs cautioned that Britain would have less clout outside the bloc.

The double warning comes as the two campaigns for and against Brexit step up their rhetoric about the impact staying or leaving the EU would have on Britain’s security.

Prime Minister David Cameron said on Monday that Britain was safer in the EU while former London mayor Boris Johnson, a member of his Conservative Party, accused him of suggesting World War Three would break out should Britons vote to leave in a referendum on June 23.

The five ex-NATO chiefs – Peter Carrington, Javier Solana, George Robertson, Jaap de Hoop Scheffer and Anders Fogh Rasmussen – said the imposition of EU sanctions against Russia and Iran, a move led by Britain, showed the importance of the bloc.

“Brexit would undoubtedly lead to a loss of British influence, undermine NATO and give succor to the West’s enemies just when we need to stand should-to-shoulder across the Euro-Atlantic community against common threats,” they wrote in a letter to the Daily Telegraph newspaper.

In a separate letter to the Times, 13 former U.S. secretaries of state and defense and national security advisers from every U.S. administration from Barack Obama’s to Jimmy Carter’s in the 1970s said Britain’s global position would suffer if it left the EU.

“We are concerned that should the UK choose to leave the European Union, the UK’s place and influence in the world would be diminished and Europe would be dangerously weakened,” said the letter signed by, among others, former Secretaries of State George Shultz and Madeleine Albright.

Their warning echoes a similar message from Obama during the U.S. president’s visit to Britain last month.

Those campaigning for Brexit have repeatedly dismissed such warnings, saying membership of NATO, rather than the EU, was key to British security.

In a sign of deepening divisions within Cameron’s own party, Iain Duncan Smith, the former Work and Pensions Secretary, said Germany had sabotaged the prime minister’s plans to renegotiate Britain’s relationship with the EU, forcing him to drop his plans to demand an emergency brake on migration.

“They have a de facto veto over everything,” Duncan Smith told Tuesday’s Sun newspaper which accompanied their story with a picture of German Chancellor Angela Merkel holding a puppet Cameron.

(Reporting by Michael Holden; editing by Ralph Boulton)

Greece passes painful fiscal reforms, heeding EU

Greek PM Tsipras addresses lawmakers during a parliamentary session before a vote of tax and pension

By George Georgiopoulos and Renee Maltezou

ATHENS (Reuters) – Greek lawmakers passed unpopular pension and tax reforms on Monday that a European official said marked a major advance in negotiations towards unlocking more rescue funds from the country’s creditors.

Euro zone finance ministers will hold talks on Greece’s progress on economic and fiscal reforms later in the day, and assess if it has met terms of its multi-billion euro bailout.

A positive sign-off on the review will unlock more than 5 billion euros ($5.7 billion) to ease Greece’s squeezed finances and cover debt repayments maturing in June and July.

Greece also hopes the sign-off will launch discussions on debt relief, and euro zone officials in Brussels said the finance ministers would discuss how to reprofile its debt to make future servicing costs manageable.

“We have an important opportunity before us for the country to break this vicious cycle, and enter a virtuous cycle,” Prime Minister Alexis Tsipras earlier told parliament during a debate on the reforms, which opposition lawmakers voted against.

While markets welcomed the vote, thousands of demonstrators protested outside parliament. Police used teargas when isolated groups hurled petrol bombs in a central Athens square.

Under the measures passed early on Monday, a combination of social security reform and additional taxation aims to ensure Greece will attain savings to meet an agreed 3.5 percent budget surplus target before interest payments in 2018, helping it to regain bond market access and make its debt load sustainable.

Greece’s 10-year bond yield hit its lowest level in four months on Monday, and European Commission Deputy President Jyrki Katainen said the package was “a major step forward”.

Eurogroup finance ministers would probably not release more funds right away but further discussions on debt relief would come before a new tranche was released, he told Finnish broadcaster YLE.

‘TOMBSTONE FOR GROWTH’

During the debate, opposition parties argued pension cuts and tax hikes would prove recessionary, dealing another blow to a population fatigued by years of austerity.

“The measures will be a tombstone for growth prospects,” said Kyriakos Mitsotakis, leader of the conservative New Democracy party which leads in opinion polls.

Tsipras was re-elected in September on promises to ease the pain of austerity for the poor and protect pensions after he was forced to sign up to a new bailout in July to keep the country in the euro zone.

Monday’s reforms are part of a package that aims to generate savings equivalent to 3 percent of GDP, raising income tax for high earners and lowering tax-free thresholds.

It increases a ‘solidarity tax’ and introduces a national pension, while phasing out benefits for poor pensioners.

Greeks could face a new bout of taxes within weeks.

Athens has been in talks with lenders over increasing value added tax, introducing additional taxes on fuel and tobacco, hotel overnight stays and internet use, officials said.

Finance Minister Euclid Tsakalotos said the reforms would affect the rich and not the poor. Greece had done what was expected of it and deserved debt relief, he said.

“Our word is a contract. We have done what we promised and hence the IMF and Germany must provide a solution that is feasible, a solution for the debt that will open a clear horizon for investors,” Tsakalotos told lawmakers.

In Berlin, German government spokesman Steffen Seibert said the finance ministers needed to review the economic reforms before any additional debt relief could be decided on.

(Reporting by George Georgiopoulos and Renee Maltezou; Editing by Mary Milliken and Clarence Fernandez; editing by John Stonestreet)

Turkey President Erdogan tells EU, “we’re going our way, you go yours.”

Turkish President Erdogan makes a speech during his meeting with mukhtars at the Presidential Palace in Ankara

By Nick Tattersall and Seda Sezer

ISTANBUL (Reuters) – President Tayyip Erdogan told the European Union on Friday that Turkey would not make changes to its terrorism laws required under a deal to curb migration, and declared: “we’re going our way, you go yours”.

His fiery speech will be a blow to any hope in European capitals that it might be business as usual with Turkey after Prime Minister Ahmet Davutoglu, who negotiated the migration deal with Europe and had largely delivered on Turkey’s commitments so far, announced he was standing down.

The EU asked member states on Wednesday to grant visa-free travel to Turks in return for Ankara stopping migrants reaching Europe, but said Turkey still had to change some legislation, including bringing its terrorism laws in line with EU standards.

“When Turkey is under attack from terrorist organizations and the powers that support them directly, or indirectly, the EU is telling us to change the law on terrorism,” Erdogan said in a speech at the opening of a local government office in the conservative Istanbul district of Eyup.

“They say ‘I am going to abolish visas and this is the condition.’ I’m sorry, we’re going our way, you go yours. Agree with whoever you can agree,” he said.

Visa-free travel is for many Turks the biggest benefit of Ankara’s deal with the EU. Europe, meanwhile, is counting on Turkey to maintain an agreement that has helped stem the flow of refugees and migrants via Turkish shores, which saw more than a million people reach Greece and Italy last year.

Davutoglu’s departure consolidates the power of Erdogan, who has been highly critical of the EU in the past and who is seen in Brussels as a far tougher negotiating partner less closely wedded in recent years to Turkey’s ambition of joining the EU.

To win visa-free travel, Turkey must still meet five of 72 criteria the EU imposes on all states exempt from visas, one of which is narrowing its legal definition of terrorism.

Rights groups say Turkey has used broad anti-terrorism laws to silence dissent, including detaining journalists and academics critical of the government. But Ankara insists the laws are essential as it battles Kurdish militants at home and the threat from Islamic State in neighboring Syria and Iraq.

Turkey’s EU Minister Volkan Bozkir was earlier quoted by the Daily Sabah newspaper as saying Turkey had already made some changes requested by Europe, including reference to “the concept of immediate and obvious danger that threatens public security”, but that it “does not have the luxury” of making any more.

“NO TURNING BACK”

Erdogan said there would be no gap in Turkey’s governance after Davutoglu’s departure and that the episode demonstrated why the country needs a full presidential system, a matter he said urgently needed to be put to a referendum.

Opponents fear an executive presidency will consolidate too much power in the hands of an authoritarian leader, a sentiment shared by some European leaders who fear his ascent will make relations with Turkey more complicated in the years ahead.

“A new constitution and presidential system are urgent requirements, not Erdogan’s personal agenda … There is no turning back from this point we reached. Everyone should accept that,” he said.

Erdogan bristles at suggestions that Turkey uses its anti-terrorism laws indiscriminately. He has repeatedly stressed his determination to crush Kurdish militants fighting an insurgency in Turkey’s southeast, and is unlikely to sanction Ankara backing down on the European demands.

Much may depend on the ability of whoever replaces Davutoglu, a decision to be made at an extraordinary congress of the ruling AK Party on May 22, to convince European allies that Turkey has already done enough.

Transport Minister Binali Yildirim, a close Erdogan ally, appears to be the president’s current preference, three senior AKP officials said, although they said that could still change.

Government spokesman Numan Kurtulmus and Justice Minister Bekir Bozdag, also Erdogan loyalists, have been touted, as has Energy Minister Berat Albayrak, Erdogan’s son-in-law, sources in the party have said.

(Additional reporting by Orhan Coskun and Tulay Karadeniz in Ankara, Paul Carrel in Berlin; Writing by Nick Tattersall; editing by Ralph Boulton)

Bleak picture reigns as EU presidents debate future of Europe

European Parliament President Schulz and European Commission President Juncker talk during a meeting at the Capitol Hill in Rome

By Crispian Balmer

ROME (Reuters) – The presidents of Europe’s three main institutions on Thursday presented a bleak picture of the European Union, saying the 28-nation bloc lacked leadership and was descending into petty, nationalistic politics.

“We have a lot of salesmen in the European Council and only a few statesmen,” said Martin Schulz, the president of the European Parliament, bemoaning the current crop of EU government chiefs who are struggling to overcome a string of crises.

Schulz joined European Commission President Jean-Claude Juncker and EU Council President Donald Tusk for a debate on the future of Europe in the room where the Treaty of Rome was signed in 1957, which laid the foundations of today’s European Union.

“The idea of one EU state, one vision … was an illusion,” said Tusk, a former Polish prime minister, who is now tasked with finding consensus and cohesion amongst EU leaders.

Such unity has become an almost impossible mission at a time when hundreds of thousands of migrants are fleeing into Europe in search of a better life, sending a shockwave through the staid and conservative continent.

Britain, the Union’s second biggest economy, is due to hold a referendum in June on whether to withdrawal from the bloc.

Years of economic underperformance, particularly in the continent’s southern rim, have also frayed the fabric of European solidarity.

“PART-TIME EUROPEANS”

“We have full-time Europeans when it comes to taking and part-time Europeans when it comes to giving,” said a particularly downbeat Juncker, adding that the “part time” Europeans were often those who received most from EU funds — a clear reference to new member states from the east.

Without naming names, Tusk also said that the newcomers were often the most opposed to finding a common policy on the migration crisis “sometimes in a very irritating fashion”.

Italy and Greece are the main ports of entry for the migrants but say they should then be sent on to other European countries to share the burden.

However, Poland, the Czech Republic, Slovakia and Hungary have rejected European Commission plans to introduce mandatory quotas of refugees and have accused Brussels of trying to blackmail them.

Juncker, a former Luxembourg prime minister who has been at the heart of EU policy making for three decades, reminisced about the time when Europe moved towards economic union and created the single euro currency.

“In former times we were working together … we were in charge of a big piece of history. This has totally gone,” he said, complaining that EU citizens did not understand what the European Union was trying to do.

“This is fertile ground for the populists.”

Tusk, Juncker and Schulz are in Rome for the presentation of the Charlemagne Prize to Pope Francis on Friday. The prize is awarded to people who are seen to have furthered the cause of European unification.

(Reporting by Crispian Balmer; editing by Ralph Boulton)

EU proposes scheme to share out asylum seekers

Migrants line up to receive personal hygiene goods distributed by the United Nations High Commissioner for Refugees (UNHCR), outside the main building of the disused Hellenikon airport

By Gabriela Baczynska

BRUSSELS (Reuters) – The European Commission proposed a system to distribute asylum seekers across the EU on Wednesday that aims to ease the load on states like Greece and Italy but drew immediate condemnation from governments in Eastern Europe.

The European Union executive published legislative proposals to reform the so-called Dublin system of EU asylum rules that includes a “fairness mechanism” under which each of the 28 states would be assigned a percentage quota of all asylum seekers in the bloc that it would be expected to handle.

The quotas would reflect national population and wealth and, if a country found itself handling 50 percent more than its due share, it could relocate people elsewhere in the bloc. States could refuse to take people for a year — but only if they paid another country 250,000 euros per person to accommodate them.

“There is no a la carte solidarity in this Union,” First Vice President Frans Timmermans told reporters. “This is a way to be able to show solidarity in a situation where … you are not able to take the refugees which were allocated to you.”

But at a meeting in Prague, ministers from Poland, Hungary and the Czech Republic all repeated their opposition to the idea of relocation: “It makes no sense, it violates EU member states’ rights,” Polish Interior Minister Mariusz Blaszczak told reporters. Hungary’s foreign minister called it “blackmail”.

A two-year emergency relocation scheme was set up last year as Greece struggled to cope with the chaotic arrival of nearly a million people, many of them Syrian refugees, most of whom reached Germany. It was agreed over the furious objections of several central and eastern states, two of whom, Hungary and Slovakia, are contesting the quota system in the EU courts.

In fact, only 1,441 asylum seekers have been relocated out of the 160,000 allowed for under the current temporary scheme.

The proposals, which also include measures to speed up the process of handling asylum claims and tighter controls on the movements of migrants themselves, need backing from governments and the European Parliament — a process that officials expect to be an uphill battle and involve many amendments.

Germany, the bloc’s main paymaster and destination for the bulk of migrants crossing the Mediterranean, has pushed hard for a permanent relocation system and has voiced frustration with the refusal of governments in the east who benefit the most from EU subsidies to take in asylum seekers.

Poland, Hungary and other formerly communist states say immigration, especially from the Muslim cultures of the Middle East, would disrupt their homogeneous societies. Governments also object to paying as an alternative to taking people in.

A similar proposal last year to set a payment of 0.002 percent of GDP was not taken up in the temporary scheme. The Commission did not issue its quota figures. Last year’s tables gave Germany a roughly 18 percent share, France 14 percent, Poland 5.6 percent and Hungary 1.8 percent.

“CONTROVERSIAL”

Any reform of the system, from which Britain, Ireland and Denmark are exempt, will require majority approval by EU governments. But senior officials say EU leaders will try to avoid forcing a deal through over strong minority objections, as happened with the temporary relocation scheme last September.

Even the authors of the proposal admit it is “sensitive” and “controversial” but hope it bridges diverging expectations from member states, EU sources said.

Splits between east and west, north and south over migration have posed one of the biggest challenges the European Union has faced and leaders’ main hope is that a new deal with Turkey to hold down the numbers arriving can take the heat out of a debate that has seen nationalist parties surge in polls across Europe.

Italy has led a push for reform of a Dublin system that gives responsibility for handling asylum claims to the first country migrants arrive in. The Commission last month floated a possibility of scrapping that in favor of a central EU system but has now favored the relocation system.

Chaotic movements of migrants, including many allowed by Italy and Greece to head north without being registered, have thrown the bloc’s cherished Schengen system of open borders into disarray, with governments putting up new barriers to travel.

EU officials hope that the deal with Turkey, from where the bulk of 1.3 million people reached Europe last year, will stem the flow and allow the Union to regain control of its external borders and hence restore order in the Schengen area.

Also on Wednesday, Brussels was expected to confirm a lifting of visa restrictions on Turks as part of the deal with Ankara. The EU is offering to take in refugees directly from Turkey, which hosts 2.7 million Syrians, and such resettlements would be taken into account in countries’ quotas for relocation.

(Editing by Alastair Macdonald)