Schengen collapse could cost up to 1.4 billion euros to the EU over the next 10 years – Jornal de Negócios – Portugal

The End of Schengen agreement that allows the free movement of people and goods in the European bloc, may cost the European Union up to 1.4 billion euros by 2025, according to a German study of the Bertelsmann Foundation, reports Reuters this second -feira, February 22.

the study estimates that in the worst case scenario, in which the reintroduction of border controls would entail a 3% increase in the price of imports, the costs for the largest economy in the bloc, Germany, ascend to 235,000 million euros between 2016 and 2025. for France, the costs would be 244 billion euros. The figure amounts to 1.4 billion for the European Union in this scenario, ie, about 10% of annual Gross Domestic Product of the 28 Member States, writes Reuters.

In a scenario where the price imports increased by only 1%, the study estimates that the Schengen collapse has cost 470 billion over the next 10 years for the European Union. The minimal losses to Germany and France would be 77 billion euros and 80.5 billion, respectively, by 2025.

“If internal barriers in Europe back to be introduced, this will increase pressure on growth, which is already weak, “says Aart de Geus, chairman of Bertelsmann Foundation, quoted by the Financial Times. “Ultimately they are the people who pay,” added the official.

The European Union would, however, not the only one affected. The study also points for losses of 91 billion and EUR 95 billion for the US and China, a price increase scenario by 1%. Assuming a 3% increase in the price of imports, the cumulative losses of the two countries could amount to 280 billion euros by 2025.

The figures presented by the German study of Bertelsmann Foundation outweigh the estimated by France Stratégie, an agency of studies and planning of the French Government. This estimates that in the long run, the s Schengen countries perdam the equivalent of 100 billion euros or 0.8% of GDP.

Schengen was set up 30 years ago, but the open-door policy has been under increasing pressure against the increasing flow of refugees coming to the European Union. To better control the entry of people, some EU states back to establish border controls, including Austria, Germany and Sweden.

The Schengen Agreement was established in 1985 by Germany, Belgium, France , the Netherlands and Luxembourg. The remaining members were adhering to the agreement in the following years. The Schengen Convention is signed in 1990 by the five initial members and enter into force in 1995. Spain and Portugal acceded to the agreement in 1992. The Convention and the Agreement constitute the Schengen acquis, which includes the institutional and legal framework of the European Union since 1999.