Tougher Border Controls: A Struggle Between Safety and Economic Impact in Germany
Concerns Arise over Potential Trade Barriers Due to Dobrindt's Proposed Strict Border Controls in Germany
Alexander Dobrindt's plans for stricter border controls have sent ripples through the German economy. Warnings from several associations, voiced to the "Handelsblatt" on Wednesday, suggest that these controls may impose restrictions on cross-border trade and commuting. The Association of Foreign Trade contends that border controls should only be temporarily enhanced.
Volker Treier, head of foreign trade at the German Chamber of Industry and Commerce (DIHK), warns against the economic burden brought about by limited border traffic. During the Corona crisis, restrictions on border movement have demonstrated their impact on the economy. Policymakers should keep this in mind while pursuing the objective of reducing irregular migration, asserting that essential cross-border commerce must remain unfettered. A smoothly-functioning European internal market and the Schengen area are vital for Germany's highly internationalized economy.
Treier also cautions of escalating storage costs and complications with just-in-time deliveries due to heightened border controls. These additional burdens are irrelevant in economically challenging circumstances. He further addressses concerns over stricter regulations for cross-border workers and service providers, particularly those in regional retail, gastronomy, and the care and health sectors. These industries depend on unrestricted goods and people traffic, according to Treier.
What's Stirring Economists
- Scalar Economic Burden:
- Improved border controls might translate to a heavier economic burden due to delayed transport, increased storage costs, and resource reallocation for logistics operations.
- The freight and transportation sectors may voice concerns about economic impacts and propose alternatives to aid in border management.
- Regional Competitiveness:
- By potentially slowing cross-border traffic, stricter controls could compromise regional competitiveness, particularly for border areas where economies are intrinsically linked.
- Local businesses and policymakers may need to reassess their strategies in response to changing trade patterns and border controls.
- Potential Political Tensions:
- If stricter controls impede cross-border traffic, this could foster tensions with neighboring countries, potentially jeopardizing trade and other economic relationships.
- It may be essential for policymakers to consider the diplomatic implications of border policies to preserve economic partnerships.
Choosing the Right Balance
While enhancing border security might seem an expedient solution to curb irregular migration, it's critical to strike a balance between maintaining a secure border and preserving trade relationships. By considering the economic impact of these policies, policymakers can develop strategies that minimize negative consequences while achieving their objectives. Engaging with various associations and stakeholders will ensure that informed decisions are made for the well-being of the German economy.
- The Association of Foreign Trade argues that border controls should only be temporarily enhanced, given the potential economic burden they might impose.
- Volker Treier, from the German Chamber of Industry and Commerce (DIHK), warns against the economic burden brought about by limited border traffic, highlighting delays, increased storage costs, and resource reallocation for logistics operations.
- Treier also addresses concerns over stricter regulations for cross-border workers and service providers, particularly those in regional retail, gastronomy, and the care and health sectors, which depend on unrestricted goods and people traffic.
- The freight and transportation sectors may voice concerns about economic impacts and propose alternatives to aid in border management, given the potential delays and burdens imposed by stricter controls.
- Policymakers should be mindful of the diplomatic implications of border policies, as stricter controls that impede cross-border traffic could foster tensions with neighboring countries, potentially jeopardizing trade and other economic relationships.
