Wary Economy Braces for Border Barriers from Dobrindt's Strict Controls Proposal
Concern mounts among associations as Dobrindt proposes stricter border controls in Germany, potentially causing trade restrictions
Here's the lowdown: Alexander Dobrindt, Germany's new Interior Minister, is mulling over stricter border controls. Economy associates are sounding off their reservations over the possibility of trade impediments and hurdles for cross-border commuters, as reported by "Handelsblatt" on Wednesday. The Association of Foreign Trade is pushing for a short-term tightening of controls only.
Volker Treier, the DIHK's (German Chamber of Industry and Commerce) chief economist for foreign trade, shared with "Handelsblatt" that even the coronavirus pandemic taught us a lesson - restricted border traffic can yoke the economy. He emphasized the need for politics to prioritize seamless cross-border trade and crucial supplies in their mission to combat irregular migration. A robust European internal market and the Schengen area are indispensable to Germany's globally interconnected economy, Treier asserted.
As for the diuretic effects of intensified controls, Treier elucidated that businesses would encounter added storage expenses, and timely deliveries would become more of a pipedream. "This is an added burden when times are economically tough," he told the newspaper.
Treier also cautioned about stricter restrictions for cross-border commuters and service providers. He zeroed in on the retail trade, gastronomy, and caregiving and healthcare sectors, which heavily lean on unhampered movement of goods and people. These industries, according to him, would suffer under any restrictions.
Sources: ntv.de, AFP
Fun Fact:
Did you know? The Schengen Area is one of the world's largest regional trade blocks, with a combined GDP of over €15 trillion. Its removal of internal borders has boosted trade and tourism in the region since its inception.
Enrichment Insights:
- Economic Challenges: Increased border control measures could lead to higher costs and delays, impacting trade efficiency and causing operational expenses to rise. This could, in turn, affect trade volumes.
- Tourism and Travel Impacts: Stricter controls could result in increased travel times and inconvenience for tourists and commuters, potentially hampering travel and affecting local economies reliant on tourism.
- Legal and Diplomatic Hurdles: The proposal could face legal challenges due to potential conflicts with EU regulations, complicating implementation and potentially impacting diplomatic relations with neighboring countries.
- Local Economic Effects: Implemented border controls could impact local economies near borders, hurting businesses dependent on cross-border trade and commuting customers.
- The Association of Foreign Trade advocates for a short-term tightening of controls, as warned by economic analysts against the potential impact of stricter border controls on cross-border trade, as reported in 'Handelsblatt'.
- Echoing this concern, Volker Treier, the DIHK's chief economist for foreign trade, emphasizes the importance of prioritizing seamless cross-border trade and crucial supplies in the face of stricter border controls proposed by Germany's Interior Minister, Alexander Dobrindt.
- According to Treier, intensified border controls could lead to added storage expenses and delays in timely deliveries, posing an added burden on businesses, especially during economically challenging times.
- Treier also highlights the potential stricter restrictions on cross-border commuters and service providers, particularly emphasizing sectors like retail trade, gastronomy, and caregiving and healthcare, which heavily rely on unhampered movement of goods and people.
- The global economy, including Germany's interconnected economy, and the Schengen area have benefited greatly from the removal of internal borders, as evidenced by the combined GDP of over €15 trillion in the Schengen Area, one of the world's largest regional trade blocks.
