Border controls: loss for Europe

Experts expect higher costs and prices as well as deadlock in the growth. The study of the Bertelsmann Foundation concluded that for EU losses in the amount of 470 billions Eur are to be expected, the end of Schengen would however cause negative economic effects also out of Europe. „When the gates within Europe go down again, this means a big pressure for the humble growth in Europe. Finally the bill is paid by the people“, is the opinion of the Foundation. The basic point for actual calculations are time losses, which would be caused by the border controls of passenger traffic at the borders all over Europe. The labour costs would increase, the stocks in warehouses should be bigger, a price pressure would be caused. Eventually we are faced with higher prices, lower demand for consumers’ goods and decline in the international competitiveness. Investments shrink and finally the economic growth reduces.