Border controls, however, not a billion grave?

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Economy

Border controls, however, not a billion grave?

The German economy warns of high growth losses, should Germany control its borders permanently. The Ministry of economy holds now: Possible impact remained manageable.

The Federal economy Ministry calculates, according to a media report, also in the case of permanent border controls with a massive increase in the cost to the economy. The economic impact is likely to remain manageable, cited the “world on Sunday” in advance of an internal document of the authority. It was from the 22. February dated and bearing the title “the Economic impact of a re-introduction of systematic border controls for Germany”.

Ministry of economy: “No reliable information”

Although there could be “queue in front of border crossings” and “the impact on the supply chains” of companies. Nevertheless, the portfolio of the Vice-Chancellor, Sigmar Gabriel, the fears of the economic believe to be unfounded, that a stock of goods would cause transport costs in the billions. “Reliable information” were not met.

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Warnings from the economy

Business associations warn, however, before lasting border controls. So, the German chambers of industry and Commerce (DIHK) fears that the economy could incur costs in the amount of ten billion euros per year. Also, the President of the Federal Association of German industry, Ulrich Grillo, said, the controls are likely to be a permanent condition.

Otherwise, the President of the SME Association of Mario Ohoven said. “We are under all circumstances to ensure that Germany’s war picks up refugees, but not economic refugees,” said Ohoven, the German press Agency. “We need border controls.”

Study predicts growth losses

Also, last week published a study of the Prognos AG, which was carried out on behalf of the Bertelsmann Foundation, attributed the sustainability of return to intra-European border controls, with a growth loss of between 77 and 235 billion euros for Germany alone by 2025. Border controls would lead to massive costs and price increases, it says. In an optimistic scenario, the losses for the EU amounted to a total gross domestic product (GDP) within ten years, to around 470 billion Euro.

Border controls until mid-may

The demand from EU countries not belonging to the Euro area, had subsided, according to data from the Federal Statistical office at the end of the year already – one reason could be the temporary border controls. This had the Federal government on the 13. September 2015 introduced and extended several times since. The focus of the German-Austrian border. The controls are up to 13. May this year be limited in time and would then have to be renewed.

cw/sti (dpa, rtr)