Brussels for the first time has threatened access to its markets to try and curb the huge numbers of people crossing the Mediterranean and becoming economic migrants.
And in a further blow is threatening visa restrictions if countries fail to comply.
Many migrants are not returning to their home country because of a lack co-operation from the countries that they originally come from, including Africa and Asia, which receive overseas aid.
The EU’s commissioner for migration, Dimitris Avramopoulos, said: “We invested in these regions to create opportunities and keep people there.”
The commissioner wants member states to detain failed asylum seekers so they do not disappear into Europe.
Brussels estimates one million people whose asylum claims have failed are now in the EU.
The Times revealed last week a migrant whose case for asylum was rejected had a 73 per cent chance of remaining in Europe, even if they were served with an order to leave.
Mr Avramopoulos said countries that did not comply could have visa restrictions placed on all of their citizens.
He said “thousands of foreigners, from diplomats and doctors to students and researchers” would be affected by the proposed travel conditions.
He added: “Let’s be honest: it is neither good for Africa nor for Europe that so many people cross the Mediterranean.”
Writing for the EU Observer last week, Mr Avramopoulos said: “Another crucial element remains return and readmission.
“This is where the EU now needs to bring its weight to bear, to ensure non-EU countries cooperate on taking back their nationals arriving as economic migrants.
The international development secretary, Priti Patel said: “The only viable long-term response to the migration crisis is to address its root causes – conflict, disease, poverty and a lack of opportunities.”
French President, Emmanuel Macron, will host EU leaders on Monday in a bid to plan a better response to the migrant crisis.