Tighter border controls to cost Netherlands 9 billion euros

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Klaas Dijkhoff during a work visit to the Koninklijke Marechaussee's Mobile Surveillance Security on Nov 9th 2015 (Photo: Rijksoverheid). Klaas Dijkhoff during a work visit to the Koninklijke Marechaussee's Mobile Surveillance Security on Nov 9th 2015 (Photo: Rijksoverheid)

The tighter border controls in Europe as a result of the refugee crisis, is bad for the economy. By 2020 this will cost the Netherlands 9 billion euros, equal to a 1.3 percent fall of gross domestic product, according to calculations by the Central Planning Bureau, NU reports.

The reintroduction of border controls in the Schengen countries means longer waiting times and more expensive trade because trade routes are being limited. By 2020 this will cost Europe 110 billion euros.

The average GDP loss in Europe is 0.7 percent. The Netherlands is facing a higher loss because of its open economy and heavy dependence on foreign trade.

The CPB also expects the border controls to affect tourism, shopping in border areas and commuting between work and home.

The Schengen agreement was made in 1985, allowing free movement within the EU. But sine the massive influx of asylum seekers to Europe, this agreement is under pressure. An increasing number of  countries, including the Netherlands, are . Germany and France even reintroduced border checks.

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