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Minister Nikolov: The total effect of Bulgaria’s full accession to Schengen could reach up to BGN 1.3 billion per year

Minister Nikolov: The total effect of Bulgaria’s full accession to Schengen could reach up to BGN 1.3 billion per year

The total effect of direct and indirect benefits for citizens and businesses from Bulgaria’s full accession to Schengen could reach up to 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 accession of Bulgaria and Romania to Schengen. The event was organised jointly by PanEuropa Bulgaria and the Embassy of Hungary in Bulgaria in partnership with the Konrad Adenauer Foundation, the Bulgarian Diplomatic Institute and the Representation of the European Commission in Sofia.

In his words, the accession of the two countries to the Schengen area directly concerns not only Bulgarian and Romanian businesses, but also all companies from all over Europe that operate in our region. Minister Nikolov pointed out that Bulgaria’s partial admission to Schengen is a cause of economic losses not only for Bulgarian businesses and citizens, but also for all countries in the region and the EU.

Dr Nikolov pointed out 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, the direct losses amount to BGN 845.2 million annually, including for heavy road transport and for producers and exporters of goods. To these losses must be added, he said, the foregone benefits in the form of expected alternative revenue from the use of time lost in downtime for additional heavy haulage work, which amounts to BGN 544.9 million. “Thus, the direct and potential benefits for citizens and businesses from the abolition of land border controls upon full accession to the Schengen area total 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-off effect, but will be reinforced with the deeper economic integration between European countries, which means that any further delay of our country’s accession to Schengen will cause 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 the EU countries and their citizens could be seen in many directions. Among these, the Minister of Economy and Industry highlighted the further strengthening of external borders, the increase in trade volumes with the other member states, the reduction of costs for exporters by freeing transport resources from trucks waiting at borders, the reduction of the time needed to move goods across Europe, the reduction of uncertainty and predictability in delivery times, the savings in administration and inspections, the benefits for tourism, the increase in the growth potential of border

In his words, Bulgaria’s inclusion in the land-based 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 traffic at the borders, 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,” Dr Nikolov said.

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