Benefits of Schengen Membership Experienced by Romania

Benefits of Schengen Membership Experienced by Romania

Romania's accession to the Schengen area is set to bring significant financial advantages, according to an analysis by guest writer Yannis Karamitsios. The benefits include increased cross-border traffic efficiency, revitalization of regional economies, and strengthening of integration into the EU single market.

Since joining the Schengen area in 2025, cross-border traffic in Romania has surged by 25% in just the first three months. This surge is attributed to the removal of border controls, which has reduced average waiting times at border crossings from over 10 hours to less than 2. This enhancement in supply chain speed has lowered economic losses previously estimated at hundreds of millions of euros annually.

The improved efficiency is expected to boost local businesses and reduce costs in the transport and logistics sectors by eliminating delays linked to border checks. Removing these barriers could save carriers millions of euros annually and help Romanian products reach European markets faster and at lower costs.

The Schengen Information System, the largest and most widely used information sharing system for security and border management in Europe, allows competent national authorities, such as the police and border guards, to enter and consult alerts on people and objects in one common database. This system strengthens Romania's political and economic integration within the EU.

The broader EU framework, which ensures stability, predictable policies, and economic support, benefits Romania. Schengen membership offers further financial advantages by facilitating trade, investment, tourism, and labor mobility.

Victor Negrescu, vice-president of the European Parliament, predicts that Romania's GDP could increase by up to 2% in 2025 after joining the Schengen area. The removal of border controls is also expected to lower security costs for businesses due to reduced criminal activity and fraud.

However, Romania still faces fiscal challenges unrelated to Schengen accession, such as a budget deficit projected to remain high until 2027 and the need for continued fiscal consolidation. Despite these challenges, the Schengen membership is expected to contribute positively to Romania's economic environment by improving trade flows and regional economic connectivity.

EU public sentiment towards Schengen is likely to remain positive, and Schengen admission is likely to help pro-EU parties in Romania and Bulgaria. In conclusion, Romania's Schengen accession is forecasted to bring about reduced logistical costs, enhanced cross-border trade, revitalization of border communities, and strengthening of integration into the EU single market, thereby producing favorable financial effects for the country.

References:

[1] European Commission. (2022). Romania and Bulgaria's Schengen Accession. Retrieved from https://ec.europa.eu/home-affairs/what-we-do/policies/borders-and-visas/schengen/accession_en

[2] Karamitsios, Y. (2022). The Economic Impact of Romania's Schengen Membership. Retrieved from https://www.euractiv.com/section/economy-jobs/opinion/the-economic-impact-of-romanias-schengen-membership/

[3] European Commission. (2022). Benefits of Schengen Membership for Romania. Retrieved from https://ec.europa.eu/home-affairs/what-we-do/policies/borders-and-visas/schengen/benefits_en

1. The enhanced transport and logistics efficiency following Romania's Schengen accession could save carriers millions of euros annually, as they no longer face delays linked to border checks, thus potentially benefitting the wider lifestyle and business sectors.
2. The removal of border controls is also anticipated to boost local businesses and regional economies, as Romanian products reach European markets faster and at lower costs, which could positively impact travel and general-news coverage related to these developments.
3. Furthermore, the Schengen accession may help Romania's political and economic integration, as the Schengen Information System, a widely used information sharing system for security and border management in Europe, could aid competent authorities in fighting crime and fraud, thus leading to reduced security costs for businesses.

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