Ditching Schengen will cost France billions

PARIS

The collapse of the Schengen agreement will cost the French economy more than 10 billion euros ($10.97 billion) a year in the long term, a government-linked think tank said Wednesday.

“If the permanent suspension of the Schengen system was decided, the economic cost would be very high,” the France Strategie report said.

“Trade between eurozone countries could be at least 10 percent lower, resulting in a loss of 10 billion euros for the French gross domestic product.”

Across the 26-nation Schengen zone - a border-free area of mostly EU member states established 1985 - the cost would run to more than 100 billion euros ($109.6 billion).

The impact on politics and society across Europe would focus on the “retrogression of the European project”.

“If the difficulties in crossing borders are significant and permanent, intra-EU migration could also be reduced due to the reduction of interpersonal ties with a long-term impact on growth, foreign trade as well as foreign investment and international funding,” the report said. “These effects are, however, difficult to estimate.”

The agreement has come under increased pressure over the past year as refugees arrive in large numbers in Europe’s largest movement of people since World War II.

More than 1.1 million arrived in the EU last year, according to the International Organization for Migration. Most arrived in Greece before making use of the EU’s open borders to travel to Germany and other northwestern countries.

PARIS

The collapse of the Schengen agreement will cost the French economy more than 10 billion euros ($10.97 billion) a year in the long term, a government-linked think tank said Wednesday.

“If the permanent suspension of the Schengen system was decided, the economic cost would be very high,” the France Strategie report said.

“Trade between eurozone countries could be at least 10 percent lower, resulting in a loss of 10 billion euros for the French gross domestic product.”

Across the 26-nation Schengen zone - a border-free area of mostly EU member states established 1985 - the cost would run to more than 100 billion euros ($109.6 billion).

The impact on politics and society across Europe would focus on the “retrogression of the European project”.

The agreement has come under increased pressure over the past year as refugees arrive in large numbers in Europe’s largest movement of people since World War II.