A collapse of Schengen zone could cost the European Union’s economy as much as €1.4 trillion over the next decade, according to a new study.
© Scanpix

The study by Prognos AG, commissioned by Germany's Bertelsmann Foundation, estimated that if European nations reintroduced passport checks at borders, this would push import prices up between one and three percent.

In the worst-case scenario, this could cost the EU roughly €1.4 trillion over the next decade from consumer price increases and demand drop. The sum is equal to about 10% of the EU's annual GDP. At a minimum, the cost would still reach €470 billion.

“If Europe’s internal barriers go back up, it will put even more pressure on growth, which is already weak,” Aart De Geus, Bertelsmann Foundation head, said in a statement.

Permanently restoring identity checks within the EU would mean longer waits at border crossings for commercial traffic, leading to increased production costs and higher prices, according to the study.

Germany and France, the EU's biggest economies, would sustain greatest losses. Germany could lose up to €235 billion in the period between 2016 and 2025, while France faces costs of up to €244 billion.

The break-up of Schengen would also affect the EU's trading partners. The United States and China could collectively lose between €91 billion and €280 billion over the coming decade.

Leave a comment
or for anonymous commenting click here
By posting, you agree to terms
Read comments Read comments

Lithuania should use InvestEU opportunities, Katainen says

As the European Commission proposes cutting cohesion support to Lithuania by almost a quarter as of...

Lithuanians have better opinion about EU than other countries – EP survey

Lithuanians have a favorable opinion about the European Union and the country's EU membership. But...

Lithuanian president, EU leaders to discuss stalling Brexit in Brussels

Lithuanian President Dalia Grybauskaitė is on Wednesday leaving for Brussels to meet with other EU...

Brussels preparing for talks with Russia on Baltic power systems

The European Commission is getting ready to start consultations with Russia over the switching of...

MEP Antanas Guoga: Before regulating any new technology first, we need to educate about it

Today, 03th of October, European Parliament voted in favour of the motion for a resolution on...