The global economic and financial crisis of 2007-08 has further intensified a social and urban crisis that undermines democracy and economic institutions internationally. Specifically, the economic crisis and the consequent austerity measures have resulted in greater exploitation in the labor market and job discrimination, in capital flight and undermined political and social institutions that provide for citizens. Xenophobia becomes again a burgeoning problem that is plaguing the European Union (EU) and needs to be addressed thoroughly for it can again undermine the democratic tradition of the region. This article concentrates on perspectives on the current migration crisis within the region of the EU that has spurred a spiral of xenophobic tendencies and a neo-liberal nationalist narrative. Particular emphasis is placed in the situations in Greece (the much attested “guinea pig” of the democratic experiment) and Italy.