The cost of non-membership of Schengen for the single market / Bulgaria and Romania

Background

Thirty years since the establishment of the EU single market, Bulgaria and Romania remain the only two countries in continental Europe that are only partially included in Schengen. This lack of full EU integration represents a lingering barrier that causes fragmentation and hampers economic growth.

Despite the fact that the European Commission has consistently supported Romania and Bulgaria fully joining the Schengen zone since 2011, the Council of the EU only lifted air and maritime internal border controls with the two countries in March 2024. Checks at internal land borders have been maintained, with no date set for their removal.

The EESC has highlighted different estimates showing that companies operating in Bulgaria and Romania pay billions of euros annually as a result of increased costs and delays due to these border controls. All these direct costs are inevitably passed on to consumers, and have an impact on workers’ physical and mental health.

According to these estimates, companies operating in Bulgaria and Romania pay a hefty price for not participating fully in the Schengen regime. A recent conference organised by the EESC and the Bulgarian Industrial Association (BIA) in Sofia, Bulgaria, put the costs related to this 'half membership' in the Schengen area at more than EUR 834 million per year for Bulgaria. For the same reason, Romania loses EUR 2.32 billion in annual revenues.

Other problems due to customs controls at the land borders between Bulgaria, Romania and neighbouring countries are loss of profits, restrictions to trade and tourism, reduced competitiveness and increased business costs, and negative environmental impacts.

This 'half' Schengen membership also has a political price. Joining the Schengen area should not be used as an informal, post-EU accession conditionality. Тhis approach creates mistrust in the European institutions and fuels Eurosceptic sentiments in both countries.

Key points:

In its opinion, the EESC:

• calls on the Council to set a date for lifting land border controls between Bulgaria and Romania and the other Schengen Member States as early as 2024. The EESC also calls on all stakeholders to work collaboratively towards this goal, ensuring that the benefits of Schengen membership are extended equally to all EU citizens;
• underlines that the Schengen Agreement is essential for the free movement of people, goods, services and capital within the EU, and that the competitiveness of the EU has become a pressing political priority, as underscored by recent reports by Enrico Letta and Mario Draghi;
• considers that despite its significant achievements, the European single market remains a work in progress. Any limitations on the freedom of movement within it have an adverse effect on EU competitiveness and economic growth, hampering the full realisation of the social market economy as envisaged in the Treaties.

The text of the draft opinion can be found here.

Additional information

Section: Single Market, Production and Consumption

Opinion number: INT/1064

Opinion type: Own-initiative opinion

Rapporteur: Mariya Mincheva

Reference: Rule 52(2) of the Rules of Procedure

Date of adoption by section: 7.11.2024

Result of the vote: 74 in favour / 1 against / 1 abstentions

Date of adoption in plenary: 4.12.2024 – 5.12.2024

Result of the vote: in favour / against / abstentions

Contacts:

Press officer: Leonardo Pavan / Laura Lui

Tel.: +32 2 546 9189

Email: laurairena.lui@eesc.europa.eu

Administrator: Annalisa Tessarolo

Tel.: +32 2 546 9732

Email: Annalisa.Tessarolo@eesc.europa.eu