Creating employment has become a major challenge in Europe. A number of European countries have been confronted with high unemployment, especially youth unemployment. Within the European Council the debate seems to be dominated by those demanding more structural reforms and austerity, whilst a number of economists are calling for an urgent expansion of demand. In addition, some countries have witnessed a significant increase in EU migration, leading politicians to question the principle of freedom of movement, whilst in countries of origin political debates have highlighted the issue of 'brain drain'.  What are the opportunities and constraints facing policymakers to solve the conundrum of the EU employment crisis?