Bulgaria’s exclusion from the Schengen Area’s land borders is dealing a heavy financial blow to the country’s economy.
According to a European Commission transport expert, the costs run into staggering amounts yearly.
Massive budget losses due to missed tax revenue
Nikolay Rashkov, a member of the European Commission’s expert group on transport, revealed alarming figures.
He stated that Bulgaria misses out on a whopping 303 million BGN in tax revenue annually by remaining outside Schengen’s land borders.
Rashkov emphasized the gravity of these losses, given Bulgaria’s budget deficit issues. Missing out on over 300 million BGN in taxes each year is highly concerning when the government seeks additional revenue sources.
Over 1 billion BGN in setbacks annually
Beyond the budget impact, Rashkov warned that Bulgaria’s economy suffers over 1 billion BGN in missed benefits yearly.
These losses stem from the delays and inefficiencies caused by ongoing border controls on the country’s land frontiers.
The economic toll doesn't end there. Rashkov said that, on average, consumer goods prices in Bulgarian stores are inflated by a steep 15 to 18% due to the land border exclusion.
Call for full Schengen integration to curb losses
Rashkov argued that had Bulgaria gained full Schengen membership, including land borders, these massive financial losses could have been significantly reduced initially and eventually eliminated altogether.
He asserted that Bulgaria meets all requirements for complete Schengen integration, including secure external border protection.
Seamless transportation is crucial, Rashkov warned, as hindrances could prove “disastrous” for the nation’s economy.
European Parliament’s role and pressure
Underscoring the European Parliament’s importance, Rashkov said whom Bulgarians elect as MEPs is “extremely important.”
He stressed the need for representatives well-versed in transport and logistics to champion Bulgaria’s Schengen case effectively.
The European Parliament has already urged removing land border checks for Bulgaria and Romania by year’s end. This aims to ease long truck queues at their borders and facilitate smoother trade flows.
Path to full inclusion
While hopeful that no other EU nations will block Bulgaria after Austria’s stance, Rashkov believes full Schengen accession is ultimately “a matter of time” for his country.
However, the path has been rocky. Despite joining Schengen’s air and sea borders on March 31st, the EU has yet to set a date for lifting land border restrictions on Bulgaria and Romania.
Bulgaria’s race against economic drain
As Bulgaria remains shut out of the Schengen Area’s land borders, its economy bleeds over 1 billion BGN annually in lost opportunities and inflated costs.
According to EU experts, seamless border-free transport is pivotal to prevent further disastrous financial consequences for the nation.