econintersect.com
       
  

FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.



posted on 24 February 2016

What If Schengen Fails?

by Felix Richter, Statista.com

-- this post authored by Dyfed Loesche

The ongoing refugee crisis carries with it the prospect of countries putting permanent border controls back in place.

Some of the 26 countries, that have signed up to the Schengen Agreement have already reintroduced short-term border controls, because of the unchecked influx of migrants. Austria, Germany, Denmark and Sweden are among those who have decided to reinstate controls.

The controls designed to stem the movement of refugees from south to north also hamper the free flow of traffic and therefore slow down the cross border exchange of goods and services. Even affecting tourism and cross border commuting. As the refugee crisis shows no sign of abating and with no prospect of securing Europe's common outward border, reestablishing controls within could become a permanent reality again.

This would basically be the end of the Schengen Agreement as we know it. All the more worrying as the open borders policy is central to the European project, because the EU is based on the political and economic integration of its member states. The below chart is based on a report by the German Bertelsmann Foundation and stakes out the possible economic costs of closing the borders again.

It is based on the assumption of a worst case scenario in which controls would take place on all intra-European borders, constituting a complete dismantling of the Schengen Zone. This collapse would for various reasons make imported goods pricier. For example, just-in-time deliveries, on which many companies base their production cycle and sales, would be severely hampered.

The figures are projections and in this sense fallible. But it is very unlikely that hampering the free flow of people, goods and services would have no detrimental impact at all on the economies of the Schengen Area, of which non-EU states Switzerland, Norway, Iceland and Liechtenstein are also members. If Schengen fails, there will be a negative economic impact, it's just hard to predict on what scale.

The economic fallout will also be felt by non-Schengen EU members such as Great Britain. The authors of the report come to the conclusion that: "In spite of favorable economic developments, Great Britain, according to our calculations, would be far worse affected by the long-term reinstallation of border controls within the EU than Germany".

The authors predict that ripple effects of a Schengen collapse would even affect the two biggest non-EU markets, China and the US.

Infographic: What if Schengen Fails? | Statista

You will find more statistics at Statista.

>>>>> Scroll down to view and make comments <<<<<<

Click here for Historical News Post Listing










Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, using Livefyre just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.



You can also comment using Facebook directly using he comment block below.





Econintersect Contributors


search_box

Print this page or create a PDF file of this page
Print Friendly and PDF


The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.


Take a look at what is going on inside of Econintersect.com
Main Home
Analysis Blog
The Problem With Obamacare Is That It Did Little To Reduce Overall Healthcare Spending
Joan Robinson’s Critique of Marginal Utility Theory
News Blog
The U.S. Is Home To The Most Unicorns
Why Britain's Public Finances Will Suffer If Brexit Reduces Migration
Working From Home Is Still Rare In The United States
What We Read Today 10 December 2016
The Last Bucket Catch
Joe Sixpack's Situation in 3Q2016: The Average Joe Is Better Off
Why Are Some People More Delinquent On Loans Than Others? - Part 1
Gravity Returns To San Francisco Housing Market
Violent Bond Selloff: An Eye-Opening Perspective
Infographic Of The Day: Identity Theft: You Should Be Worried
Early Headlines: Russia Hacked GOP, Trump To Drain Energy 'Swamp'?, New Sec'y Of State Candidate, India IP Shrinks, India Has World's New Largest Solar Plant , China GDP Hides Volatility And More
Most Coup Attempts In Recent Years Have Failed
The Global Cost Of Diabetes
Investing Blog
Natural Gas Prices Are Headed Higher In 2017
The New Art Of Utility Investing
Opinion Blog
The US Has A Regime-Uncertainty Problem
Trickle-down Economics, Trump Edition
Precious Metals Blog
Silver Prices Rebounded Today: Where They Are Headed
Live Markets
09Dec2016 Market Close: Wall Street Closes On A New High, Trump Sugar High, Crude Prices Testing Resistance, US Dollar Melts Higher
Amazon Books & More






.... and keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government



Crowdfunding ....






























 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved