(09 May 2016) – A policy paper published by the Jacques Delors Institut – Berlin shows how the end of Schengen would undermine the euro area, the single market, and the European integration process. It also explains who should save Schengen and why.
A number of countries in the Schengen area have introduced temporary border controls. While it is unclear how these measures would solve the two challenges and whether or not a better European solution to the problem could be found, it is certain that border checks would impose economic costs.
Estimates from different studies show that the largest costs would occur in trade (around €11-47 billion per year). On top of it, there would be costs for commuters, tourism and the actual border controls (each about €5-6 billion per year).
All in all, this economic damage of up to €63 billion per year in the Schengen area could threaten the stability of the euro area and undermine the efficiency of the European single market.
Moreover, because of the importance of open borders for European integration, ending Schengen might give the impression of a weakened European problem-solving capacity.