Report: Schengen's end would cost more than 100 billion euros

The end of Europe's borderless Schengen area would cost the bloc more than 100 billion euros (110 billion dollars) in the long term, a French government-backed think tank said in a report released on Wednesday.

The report by France Strategie said that imposing border controls would cost France 1 to 2 billion euros in the short-term alone, depending on the intensity of the controls.

It attributed much of the cost to a decline in visitors from other European countries, as well as a smaller part to fewer cross-border workers and reduced movement of goods.

In the long term, it said imposing border controls would act effectively as a 3-per-cent tax on trade between countries in the region, based on anticipated losses.

It calculated the 100-billion-euro loss based on a 0.8-per-cent impact on Schengen area GDP.

Europe's free movement agreements have been strained with the influx of refugees and migrants, many fleeing conflict in Syria.

"This is yet another estimate on the cost of non-Schengen, which is ... even more dramatic than the figures that we have seen," said European Commission spokesman Margaritis Schinas.

"Although the estimates vary, I think there is only one certainty that emerges from all this: that the cost of non-Schengen will be very, very high."

Last update: Fri, 24/06/2016 - 08:49
Author: 

More from Europe

Italian president starts 48-hour round of talks on post-Renzi crisis

Italian President Sergio Mattarella was starting Thursday the hard slog of lifting his country from a political...

10 Italian school classes vote "Mein Kampf" among their top books

Ten classes of Italian high-school students included Adolf Hitler's anti-Semitic manifesto "Mein Kampf" among their...

France's Le Pen says she opposes free schooling for migrant children

French politician and head of the far right National Front party Marine Le Pen said Thursday that free education...

Greek court blocks extradition of a further two Turkish soldiers

The legal tug-of-war regarding the extradition of eight Turkish soldiers from Greece continues.

EU report: Migrant transfers to Greece under asylum rules can restart

Greece's improved ability to register and process asylum seekers is a sign that a gradual return to EU asylum rules...