The collapse of the passport-free Schengen area would have a dramatic effect on economic growth in Europe and would endanger the prosperity of the continent, said on Monday a study by a German research institute.
the reintroduction of internal border controls in the Schengen area would increase production costs and prices, said the Bertelsmann Foundation.
If border checks permanently reinstalled, the economic costs only for Germany would be 235,000 million euros (about 258,890 million) between 2016 and 2025. for the EU as a whole, the costs amount to nearly 1.4 billion euros over the next decade.
“If you become internal barriers in Europe, will mean further pressure on the already weak growth,” said President foundation, Aart De Geus.
Even in the most positive scenario, the gross domestic product (GDP) in Germany would fall by 77,000 million euros, and throughout the European Union (EU) to 470.000 million euros.
the study indicates that waiting time for reviewing passports will cause higher labor costs and an increase in inventories companies.
“Both factors would result in higher production costs and in turn higher prices,” the foundation said in a statement. Also warned that exports, investment and production would also be affected, which would generate lower economic growth.
The Schengen area of 26, in place for two decades, has been under tremendous pressure since last year when millions of refugees fled war and poverty in their countries and flooded Europe.
the constant migration forced several countries, including Germany, Sweden and Denmark to reintroduce border controls, which in turn led to concerns that the symbol of European integration could collapse before the high humanitarian and political challenge since World War II.
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