5 major risks stemming from the refugee crisis

Following a topsy-turvey summer of economic volatility and political turmoil, Europe is facing another major collective action problem: the refugee crisis.

While most of the recent issues in the European Union been internal ones, this crisis is unique in that it unites the problems of developing markets with those of industrialized economies.

Consequently, although "there seems little likelihood that this crisis will become systemic in nature," its "impact on the political risk outlook is, in our view, significant," argues Citi's Tina Fordham.

In light of that, we put together five major poli-economic risks stemming from a failure to act in response to the crisis.

"Addressing the refugee and migration crisis will require further reforms, cooperation and coordination, not to mention political leadership," adds Fordham.