It's hard to say where xenophobia and racism is worse. It is especially so because context is so different: colonial and independence wars, larger populations, etc. all play a part on this. I.e., a Mexican crossing the border into what used to be Mexico probably won't have the same reaction as a Muslim Egyptian in London.
It is particularly hard to imagine American reaction if it adopted naturalization laws like that of England and the rest of Europe. For while public reaction might be one thing, official policy on immigration in Europe is radically simpler and easier than in the US.
People are likely well aware of European union citizenship and the fact that citizens of one nation enjoy full benefits in another. And that in a zone with almost as great economic disparity (for example, compare the US's 46000 gdp per capita to Mexico's 13000, and then Luxembourg's 78000 or Switzerland's 43000 to Latvia's 14000).
But beyond that, EU's laws are much more relaxed. First, most nations recognize those born in the colonies before decolonization as citizens. Second, legal residence (different from permanent residence) in most countries for 10 years or more automatically allows them to apply for citizenship. Finally, unlike in the US, there are a number of perks to immigrating to Europe NOT available to citizens (which was a way of encouraging immigration to offset the ridiculously low fertility rates). The Netherlands, for example, has the "30 percent rule," where foreigners in specialized professions only pay income taxes on 70% of their income.
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