EU approves Bulgaria and Romania's Schengen Area
EU interior and justice ministers are set to vote on Thursday, December 12th, to fully admit Bulgaria and Romania to the Schengen Area.
This decision comes as several EU countries (Germany, Austria, Denmark, France, Italy, Norway, Slovenia, Sweden and Finland) have reintroduced temporary border controls due to various security concerns.
The move is expected to have significant economic benefits for both countries, but it also raises concerns about potential challenges, particularly for Romania's border with Moldova.
Reintroducing border controls has had a substantial negative impact on European economies, with increased costs for businesses and consumers. The tourism and food industries are among the sectors most affected by these measures.
European institutions estimate that reintroducing border controls could cost European economies between 18 and 20 billion euros annually. Road freight transport is particularly affected by increased border wait times, leading to higher transport costs and supply chain disruptions.
Germany alone could lose around 11.5 billion euros in GDP due to the recently imposed border controls. Increased business costs are likely to be passed on to consumers in the form of higher prices. "We want to further reduce irregular migration. To this end, we are now taking further steps that go beyond the comprehensive measures (increased border controls, stricter asylum policies, and cooperation with other countries) currently in place," Interior Minister Nancy Faeser told reporters on Monday.
German companies near the Polish border rely heavily on Polish workers. In the Netherlands, border municipalities have urged the government to lift border controls, as many residents commute to jobs in Belgium and Germany. The Dutch economy could lose up to 9 billion euros due to border delays.
The EU food industry faces increased supply costs (the overall cost incurred by businesses to procure and deliver goods or services) and potential issues with the shelf life of fresh produce due to longer transport times. The tourism sector is also expected to be affected.
Romania's accession to the Schengen Area will have significant implications for Moldova. The Romanian-Moldovan border will become an external EU border, making border crossings more stringent.
Translation by Iurie Tataru
