Europe’s ageing population means the EU needs to create mechanisms for the legal arrival of migrant workers, Bank of Italy Governor Fabio Panetta said Tuesday, stressing that this issue “cannot be tackled by member states individually”.

“There is a risk of a sharp drop in the labour supply in the coming years and, therefore, in the European economy’s potential growth,” Panetta said in a lecture at the Roma Tre University after being awarded an honorary degree.

“This is why a significant effort is needed to allow the regular, controlled entry of immigrants and their integration into the labour market.

“A common immigration policy is needed to avoid imbalances in the face of the asymmetric pressure of mass arrivals from countries of the South of the world”.

Panetta also said that the EU must move from a growth model based on exports and external demand to “strengthening internal demand and the single market”.