Europe's prized Schengen area, which is a passport free travel zone, highly critical to European integration is clearly under threat as Austria and other nine Balkan states too unilateral decision to choke migrant flows by strengthening internal border controls. This will trap, thousands of migrants in Greece and numbers could go as high as 70,000. This move implies a clear rejection of EU-wide solution that has been driving by German Chancellor Angela Merkel.

While Germany is benefiting from this as migrant flows have dropped in hundreds this week from thousands a week ago, German Chancellor, in TV appearance clearly rejected this idea saying it hurts European unity and increase pressure upon Greece.

This decision is clearly threatening the very fabric of European unity. The decisions were taken in Vienna in a meeting, where Germany wasn't invited. Some of German MPs have also rejected this new controls by calling it a step towards division of Europe.

Germany's interior minister Thomas de Maizière, a close ally of Ms. Merkel, pleaded for countries not to follow Austria's example.

Such unilateral moves will threaten the success chance of pan-European solutions, and will reveal the cracks within Euro Zone as well as European Union.

Expect next Euro Zone summit on March 7th, to be a very heated one. If EU fails to reach a pan-European solution, it may not bode well for Euro.

Euro is currently trading at 1.092 against Dollar.