Border controls could cost 235 billion economy – tagesschau.de

turnpikes and foreclosure: In the refugee crisis increased calls for the abolition of the Schengen area. But permanent border controls would have severe economic consequences, according to a new study. Germany alone threaten thus hundreds of billions of euros loss.

The permanent reintroduction of intra-European border controls had a recent study shows that significant negative effects on growth and prosperity in Europe. Germany alone would by 2025 losses of at least € 77 billion to be feared, the price of imported goods should rise by one percent, said the Bertelsmann Foundation at the presentation of a study. Within the European Union at least EUR 470 billion loss in the same period is estimated.

reason for possible losses were cost and price increases as a result of border controls, said the foundation. Longer waiting times at the turnpikes within Europe meant higher personnel costs for the companies. Also they would have to increase the stocks because punctual deliveries could no longer be guaranteed. The resulting increase in production costs caused higher prices, which in turn reduce consumer demand. This ultimately leads to lower investments and less production, according to the study, which was conducted by the Economic Institute Prognos AG on behalf of the Bertelsmann Foundation.

If import prices by as much as three percent increase, Germany would have according to the findings of the research institute until 2025 even growth losses in the amount of 235 billion euros accept the EU countries a total of 1.4 trillion euros. Even the United States and China would be affected by the growth-dampening effects. “If the barriers go down again, gets the already weak growth in Europe even greater pressure,” said the CEO of the Bertelsmann Foundation, Aart de Geus. At the end of all the people paid the bill.

Background of the study are fears due to the refugee crisis could fail the Schengen system, which provides for free movement of people and goods without border controls between many European countries , Because of the heavy influx of refugees currently make several states of exception rules and use have again, initially limited, introduced border control

.