By Mariya Mincheva

Bulgaria and Romania fulfilled the conditions for joining the Schengen zone in 2011. However, 13 years later, they have still not been granted the full benefits of free movement. This discrepancy carries a political price and fuels euroscepticism.

At a Council meeting on 22 November in Budapest, the internal affairs ministers of Hungary, Austria, Bulgaria and Romania agreed to 'initiate the necessary steps' to set a date to lift checks on land borders, subject to stronger efforts to stem irregular migrants arriving via the Western Balkan route.

The Schengen Agreement is essential for the free movement of people, goods, services and capital within the EU, and is a key factor in the EU's economic success. Limitations undermine the EU's competitiveness and economic growth and hamper the delivery of the social market economy, as envisaged in the Treaties.

For years, Member States have been temporarily reintroducing border controls. However, the economic and social impact of these decisions on the single market has not been evaluated. The European Commission assesses physical trade barriers, but this only covers border blockades, demonstrations and truck attacks. The effects of land border controls, including the temporary reintroduction of border controls by Schengen Member States, are not taken into account.

In 2023, the Council agreed to lift internal air and maritime border controls with Bulgaria and Romania as of 31 March 2024. However, checks at internal land borders have been maintained, with no date set for their removal, resulting in significant costs and preventing companies from reaping the full benefits of the single market.

By taking steps to fully integrate Bulgaria and Romania into the Schengen zone, the EU can strengthen its internal cohesion, enhance its competitiveness and uphold the fundamental principles of free movement and solidarity underpinning the European project.

The European Parliament has argued that not being part of the Schengen zone could affect market expectations of these countries' status in the EU. It is a political signal that could have a bearing on the yields of government bonds, the prices of financial assets and the interest rates faced by firms and households, and could harm the real economy.

Both countries pay billions of euros annually due to increased logistics costs, delays in delivering goods and equipment, and increased fuel and driver costs. These direct costs are inevitably passed on to consumers through higher prices, impacting workers' physical and mental health.

This situation hampers tourism. It also impedes the free movement of labour, limiting opportunities for workers from Bulgaria and Romania to seek employment in neighbouring Member States. This limitation affects the construction, agriculture and services industries, which rely heavily on seasonal and temporary workers.

In his report on the future of the single market, Enrico Letta calls for firm opposition to any attempt to limit freedom of movement between Member States, including technical restrictions on routes and road transport, and any suspension of the Schengen Agreement.

It is high time that the Council set a date for lifting land border controls between Bulgaria, Romania and the other Member States which are members of the Schengen zone. A final decision on this issue is expected at the meeting of the EU Council for Justice and Home Affairs on 12 December.