Schengen Agreement: Notable Advantages for Romania's Travel and Economic Growth
Life in the Fast Lane: Romania Revs Up with Full Schengen Accession
Yannis Karamitsios, a Greek lawyer living in Brussels and active member of the European federalist movement, delves into the financial gains Romania can expect after fully entering the Schengen Area. After more than 17 years after joining the EU, the clock's ticking as we approach the lifting of border controls for both land and air travel on January 1, 2025.
The Schengen Convention has long established the abolition of internal border controls and a common visa policy among its member states. Covering a population of over 450 million people and an area of 4,595,131 square kilometers, the Schengen Area operates much like a single state for international travel purposes. Though the Netherlands and Austria had previously opposed Romania and Bulgaria's accession through the EU Council, the political landscape is shifting, and these countries are well on track to becoming full members.
The benefits of Schengen membership for Romania are varied and far-reaching. Let's take a spin through the top financial advantages:
speed demon trade:
By eliminating internal border checks, Romanian goods and services flow more freely to 28 other European countries. Compared to the pre-Schengen days, companies engaged in cross-border trade will save on business costs, streamline supply chains, and enjoy a less cumbersome administrative burden. Key trading partners such as Germany, Italy, Hungary, France, Bulgaria, and Poland are largely inside the EU. Schengen membership, therefore, promises a smoother, quicker, and more cost-effective journey to European markets, benefiting Romania's export-driven sectors, including machinery, automotive parts, and agricultural products.
the great investment migration:
Multinational companies are more likely to invest in Romania with Schengen membership, knowing they can move goods and personnel without encountering friction at the border. Investments could expand into sectors such as logistics, transportation, and services, given Romania's strategic position and proximity to other European economies.
labor mobility and greenbacks:
Schengen membership enables the free movement of labor, opening up job opportunities in other Schengen countries for Romanian workers. This freedom of movement allows Romanians to find higher-paying jobs abroad in places like Germany, France, and the Netherlands. While some short-term workforce gaps may occur, the remittances sent back by Romanian workers support households and stimulate local economies, driving consumer demand for goods and services.
epic security savings:
Improved security cooperation among Schengen members leads to enhanced safety and reduced security costs for businesses. The Schengen Information System fosters information exchange among law enforcement agencies, mitigating criminal activities and fraud that would otherwise burden companies with greater insurance, security services, and legal compliance costs.
political muscle:
Last but not least, Schengen membership strengthens Romania's political and economic integration within the EU. Schengen integration secures Romania's standing as a credible and financially sound member of the EU, thereby unlocking access to EU funding programs and enhancing the country's global reputation.
Estimates predict Romania's GDP could increase by up to 2% in 2025, attributed to the benefits of Schengen membership. Romanian Finance Minister Marcel Bolos projected this development as a "game-changing moment" for the country's economy, with carriers saving millions of euros annually and Romanian products reaching European markets faster and at lower costs.
Yannis Karamitsios is the author of the book 'Time for a European Federation' published by Peter Lang in 2021. If you'd like to join the debate and share your views on political and social topics or discuss the implications of Romania's Schengen membership, write to us at our site's newsroom.
This article presents the author's opinions. If you're keen to share your own opinions on political and social matters, or discuss life in Romania in general, feel free to write to us at newsroom@ourwebsite.
- Schengen membership not only benefits Romania in terms of trade, but also attracts multinational businesses that can move goods and personnel without encountering border friction, particularly in sectors like logistics, transportation, and services.
- Romanian workers can take advantage of Schengen's free labor mobility to find higher-paying jobs in other Schengen countries, helping to support households, stimulate local economies, and drive consumer demand for goods and services through remittances sent back home.
