Europe should spend £23billion and accept 500,000 migrants a year to avoid the EU being torn apart by the refugee crisis, a billionaire financier has argued.

George Soros claimed the huge cash injection was vital to stop the 'real threat' of the collapse of the Schengen system - the 26 European countries that have scrapped border control at their internal borders.

The American investor stressed that EU leaders needed to embrace 'surge' funding rather than 'scraping together insufficient funds year after year'.

George Soros, 85, claimed Europe must spend £23billion and accept 500,000 migrants a year to avoid the EU being ripped apart by the refugee crisis

In his essay written for the New York Review of Books, Mr Soros stressed that Europe should absorb between 300,000 and 500,000 refugees each year.

The investor, 85, estimated the EU would need at least £23billion ($30billion) a year to finance his plan.

'Thirty billion might sound like an enormous sum, but it is not when viewed in proper perspective,' he wrote.

'First, we must recognize that a failure to provide the necessary funds would cost the EU even more.

The investor stressed that EU leaders needed to embrace 'surge' funding to respond to the 'most dangerous consequences' of the migrant crisis

A refugee exchange programme is in place that will see the EU admit one refugee directly from Turkey for each Syrian it takes back from the Greek islands

'There is a real threat that the refugee crisis could cause the collapse of Europe's Schengen system of open internal borders among twenty-six European states.'

Over a million migrants and refugees fled the Middle East and Africa last year and crossed into Europe.

Now a refugee exchange programme is in place that will see the EU admit one refugee directly from Turkey for each Syrian it takes back from the Greek islands.

All migrants intercepted as they head to Greece on boats will be returned to Turkey. They will not be part of any exchange deal.

Mr Soros also claimed a humanitarian meltdown is happening in Greece, writing: 'The asylum seekers are desperate. Legitimate refugees must be offered a reasonable chance to reach their destinations in Europe.

Mr Soros said: 'The asylum seekers are desperate. Legitimate refugees must be offered a reasonable chance to reach their destinations in Europe'

'EU leaders need to embrace the idea that effectively addressing the crisis will require 'surge' funding, rather than scraping together insufficient funds year after year.

'Spending a large amount at the outset would allow the EU to respond more effectively to some of the most dangerous consequences of the refugee crisis.'

Mr Soros suggested the European Commission's Multiannual Financial Framework - Europe's long-term spending planfor ongoing funding.

He argued that it was imperative to get separate 'surge' funding to stem the refugee crisis - saying the European Financial Stabilization Mechanism (EFSF) and the Balance of Payments Assistance Facility contain £47billion of unused funding.

He said: 'Throughout history, governments have issued bonds in response to national emergencies. That is the case in Europe today. When should the triple-A credit of the EU be mobilized if not at a moment when the European Union is in mortal danger?'