Impact of Border Controls on Economic Stability
Border controls have significantly hampered economic performance by elevating transport costs by 1.7% and diminishing trade volume, leading to annual losses of up to 1.1 billion euros. Sectors such as food, trade, and transport are particularly vulnerable, experiencing import losses of 62 million euros, 55 million euros, and 51 million euros respectively.
The additional delay of approximately 20 minutes at border crossings disrupts Just-in-Time production systems, exacerbating recession risks. Overall, these constraints contribute to potential GDP losses of up to 11.5 billion euros, affecting a wide array of industries from manufacturing to leisure activities, and diminishing both day trips and weekend getaways across the Schengen area.
The press radar on this topic:
Allianz Trade: Border controls weaken the economy
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