According to reports from Davos, EU leaders have warned that the EU could unravel if Member States fail to agree a common approach to the refugee crisis and security challenges in the next few months. Austria announced a formal cap on the number of refugees it would allow in this year, putting pressure on Germany to do likewise. The threat of border closures could undermine the EU’s core principle of free movement, which would affect trade and, according to the French Prime Minister Manuel Valls, pose existential threats to Europe. Angela Merkel has so far rebuffed demands for a formal cap, but the German publication Die Zeit has said that she is looking increasingly isolated.