Billion-disaster for Germany: If Schengen tilts, which is really expensive – ABC Online

Monday, 02.22.2016, 07:50

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Many Member Countries the European Union close their borders and thus levering the Schengen Agreement of. But what if the Limitless Pact really tilts? For the European economy, the disastrous consequences would.

The permanent return to intra-European border controls would significantly curb economic growth according to a study in Europe. Germany alone would be expected by 2025 accumulated growth loss 77-235 billion euros. These are the findings of a recent study by Prognos AG on behalf of the Bertelsmann Stiftung. One end of the Schengen Agreement would lead to growth and welfare losses.

“If the barriers within Europe go down again, gets the already weak growth in Europe even greater pressure. At the end of all the people pay the bill” stressed Aart De Geus, CEO of the Bertelsmann Foundation.

negative impact on economic growth

So would the reintroduction of border controls lead to massive cost and price increases, the negative impact on economic growth in itself Europe would affect. Even in an optimistic scenario with a moderate increase in prices for imported goods from other European countries by only one percent the associated lower growth would be substantial. For the EU as a whole, the decline in gross domestic product (GDP) within a decade pdfbox4496584 totaled around 470 billion euros.

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In a pessimistic scenario of a rise in import prices assumed by three percent. Here, the GDP decline in Germany would add up to 235 billion euros. In France, it would be around EUR 244 billion and for the EU at 1.4 trillion euros.

Longer waiting times mean higher labor costs

The starting point of the calculations, the loss of time resulting from the controls would result at the borders within Europe. Longer waiting times mean higher labor costs for businesses. In addition, the stocks must be increased because just-in-time deliveries can not be guaranteed.

The calculations were commissioned by the Bertelsmann Foundation of the Prognos AG conducted using a macroeconomic model, the 42 countries and thus covers more than 90 percent of global economic output

Ramsauer. Bayern should limit alone safeguard

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