The effect of entering Schengen can reach BGN 1.3 billion per year – 2024-07-10 03:46:35

by times news cr

2024-07-10 03:46:35

The total effect of direct and indirect benefits for citizens and businesses from Bulgaria’s full accession to Schengen could reach BGN 1.3 billion per year. This was announced by the Minister of Economy and Industry Dr. Petko Nikolov in his speech during an event related to the presentation of the priorities of the Hungarian Presidency of the Council of the European Union, among which are the full acceptance of Bulgaria and Romania in Schengen. The event is jointly organized by “PanEurope Bulgaria” and the Embassy of Hungary in our country in partnership with the Konrad Adenauer Foundation, the Bulgarian Diplomatic Institute and the Representation of the European Commission in Sofia. This was announced by the press center of the Ministry of Economy.

In his words, the acceptance of the two countries into the Schengen area directly affects not only Bulgarian and Romanian business, but also all companies from all over Europe that operate in our region. Minister Nikolov pointed out that the partial acceptance of Bulgaria into Schengen is the cause of economic losses not only for Bulgarian businesses and citizens, but also for all countries of the region and the EU.

Dr. Nikolov highlighted the financial effect for Bulgaria of full membership, according to data from a report of the Bulgarian Academy of Sciences, prepared at the request of the Ministry of Economy and Industry. According to him, direct losses amount to BGN 845.2 million per year, including for heavy road transport and for manufacturers and exporters of goods. According to him, to these losses should be added the lost benefits in the form of expected alternative revenues from the use of the lost idle time for additional work of heavy goods transport, which amounts to BGN 544.9 million. “Thus, the direct and potential benefits for citizens and business with the abolition of land border control upon full accession to the Schengen area amount to a total of BGN 1.3 billion per year,” he announced.

Minister Nikolov also noted that the positive results of Bulgaria’s accession to the Schengen area are not a one-time effect, but will be strengthened with the deepening economic integration between European countries, which means that any subsequent postponement of our country’s admission to Schengen will be the cause of greater lost benefits for both the Bulgarian and European economies, which is why accession should be a key priority.

He pointed out that the positive effects of full membership of Bulgaria and Romania for EU countries and their citizens can be considered in many directions. Among them, the Minister of Economy and Industry highlighted the additional strengthening of external borders, the increase in the volume of trade with other member countries, the reduction of costs for exporters by freeing up transport resources from trucks waiting at the borders, the shortening of the time needed to move goods in across Europe, the reduction of uncertainty and predictability in delivery times, savings in administrative service and checks, benefits for tourism, increasing the growth potential of border areas, a significant environmental effect and others.

In his words, the inclusion of Bulgaria in the overland Schengen area is essential for companies from all sectors of the Bulgarian economy, as well as for foreign investors in the country. “The benefits of the Schengen area are related to the reduction of border traffic, improvement of transport connectivity and development of logistics infrastructure, which will contribute to strengthening economic relations in the region, as well as increasing investor interest in the country,” said Dr. Nikolov.

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