Bulgaria loses almost €1bn due to Schengen accession delays this year

4 months ago 21

Bulgaria has lost €0.7 billion this year alone – including €423 million in direct losses and €225 million in lost benefits – as a result of not being fully admitted to the Schengen area, said caretaker Economy Minister Petko Nikolov.

Bulgaria, along with Romania became Schengen Area members at the end of March but only with regards to air and sea borders.

In his comments on the losses it has caused for Bulgaria, Nikolov cited data from a report prepared for the ministry by the Institute of Economic Research at the Bulgarian Academy of Sciences. His estimate was far more pessimistic than the €0.5 billion annual loss previously announced by the Union of International Carriers.

“The results of the full admission of Bulgaria and Romania to Schengen are not a one-off effect but will intensify with deeper economic integration between European countries, which means that each successive postponement will cause greater lost benefits for both the Bulgarian and the European economy,” said Nikolov.

Nikolov also noted that Bulgaria’s accession to Schengen land borders would lead to carbon savings from transport worth €3.75 million.

While influential Bulgarian MEP and ALDE co-leader Ilhan Kyuchyuk (DPS) said in April that Bulgaria was unlikely to become a full member of Schengen this year, citing in particular elections in Austria – the main opponent of Bulgaria and Romania joining the area – Nikolov said on Monday that Schengen accession was a key moment for European integration.

“We appreciate as extremely positive the fact that Hungary has made our accession by land a priority. We highly appreciate Hungary’s support for a quick, sooner, and I would say life-saving accession of Bulgaria and Romania to Schengen, and I hope by the end of the year this will become a fact,” Nikolov said.

The Bulgarian government also noted that joining Schengen will ease the heavy traffic on the borders with Romania and Greece and lead to a rapid development of the logistics infrastructure in the region.

“Increasing trade volume, reducing costs for exporters by freeing up transport resources from trucks waiting at the border, reducing travel time, saving on administrative checks at the border, reducing delivery times, increasing growth potential of border areas, the environmental effect of ending trucks waiting at borders,” the minister added.

(Krassen Nikolov | Euractiv.bg)