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Europe to relocate 120,000 migrants: Reports

European Union (EU) ministers voted to launch a scheme to redistribute 120,000 asylum seekers around the region on Tuesday, according to Reuters, which cited diplomats.

However, a deep divide is emerging across the EU, with one side calling for further controls and the other pushing for each country to do their part, against a backdrop of widespread border confrontations and chaos.

Hungary's Prime Minister Viktor Orban is one of the most vehement opponents to a EU-wide quota system proposed by the 28-country group's leaders. Addressing parliament on Monday, he said migrants were "now not just knocking on our door, but breaking it down," a statement on the government's website said.

The country's parliament Monday authorized the government to deploy the army to use "non-lethal" force such as rubber bullets, tear gas and net guns on the crowds of migrants trying to gain entry to Europe, Reuters reported.

Read More Europe in disarray: Borders close amid migrant crisis

Migrants wait in a holding area across from the Croatian border after walking the last few kilometers from Serbia to Croatia on September 21, 2015.
Carsten Koall | Getty Images
Migrants wait in a holding area across from the Croatian border after walking the last few kilometers from Serbia to Croatia on September 21, 2015.

Hungary joins Poland, Hungary, the Czech Republic and Slovakia in opposing the quota system, saying it will only encourage more asylum seekers to come to Europe. However, countries like Germany say it is fairer for all countries to play their part in helping to alleviate the strain on southern European countries where migrants are arriving, mainly after harrowing journeys over land or across the Mediterranean.

On Tuesday, EU interior and justice ministers convened in Brussels and on Wednesday EU leaders are meeting for an extraordinary summit.

Ahead of the meeting, the president of the European Council, Donald Tusk, warned that Europe had lost control of its borders, a comment borne out by chaotic scenes of authorities struggling to cope and restrain the flow of refugees. Europe has been criticized by charities for failing to deal with the crisis, and its causes rooted in civil wars and conflict in the Middle East and Africa, earlier.

Read MoreMigrant crisis: Hungarian riot police tear gas migrants

'Breaking the door down'

Europe is has seen 500,000 migrants enter the region so far this year, many fleeing from civil war in Syria in the Middle East, according to Frontex, the EU's border protection agency. The strain of the numbers arriving is being felt across the continent although some countries are affected more than others.

Becoming increasingly overwhelmed with the thousands of migrants arriving, Hungary closed its borders with its Balkan neighbour Serbia by building a fence forcing the asylum seekers to enter neighboring Croatia, which now says it is struggling to cope with the numbers arriving as a result.

Those countries are being used by thousands of migrants as a conduit to bother enter the European Union and to get to more prosperous northern countries like Germany and Austria.

To worry or not to worry

While Hungary may be concerned about migrants, economists say ageing Europe could well do with an influx of young, eager workers.

"We believe that net migration for the euro area and for Germany is positive for growth," Credit Suisse economists predicted in a note on Monday.

Read MoreFour reasons why Europe's migrant crisis matters

"In the short term, it should add to economic growth (and) in the longer term, the fact that migrants are mainly young increases the working age population and addresses worrying demographics and pension dynamics in the euro area."

Credit Suisse believed that over the next five years, net migration would boost the euro area's population by 5 million, equivalent to 1.5 percent of the current 340 million population.

- By CNBC's Holly Ellyatt, follow her on Twitter @HollyEllyatt. Follow us on Twitter: @CNBCWorld