Wary Economy Braces as Dobrindt Pushes for Tougher Border Controls: Brexit-Style Barriers Fear looms for Trade and Commuters
Concerns Arise Over Potential Trade Hindrances from Dobrindt's Proposed Strict Border Regulations in Germany
LinkedIn Reddit Email Print Copy Link Share
The tougher border control plans of the newly appointed Interior Minister, Alexander Dobrindt, have set alarm bells ringing in the business world. Several industry associations have voiced their concerns to "Handelsblatt" about the potential impact of these controls on cross-border trade and commuters. The Association of Foreign Trade has urged for temporary measures to limit border checks.
In an interview with "Handelsblatt," the head of foreign trade at the German Chamber of Industry and Commerce (DIHK), Volker Treier, warned about the economic fallout of strengthened border traffic restrictions, even during the coronavirus crisis. Politicians, he argued, must bear in mind the need for seamless exchange of crucial deliveries and cross-border trade as they endeavor to curb irregular migration. A robust European internal market and the Schengen area are "crucial" for the globally interconnected German economy.
Treier further hinted at higher storage costs for companies due to intensified checks, as well as the complications that arise with the just-in-time delivery system. All these problems, he admitted, would add extra burdens on the economy during challenging economic times.
The DIHK expert also raised concerns about stricter restrictions for cross-border workers and service providers, particularly those in the retail, gastronomy, and healthcare sectors, which heavily rely on unimpeded flow of goods and workers.
According to recent probabilities, stricter border controls can trigger several potential adverse effects:
- Heavier Delays and Costs for Cross-Border Trade: Tougher controls may result in extended wait times at the borders, impacting businesses dealing with cross-border trade by escalating costs. The efficiency of supply chains and competitive edge of German businesses could both be affected under such circumstances.
- Cross-Border Commuters: Stricter control measures could also influence cross-border commuters, potentially leading to extended commute times and increased paperwork. This might negatively impact employee productivity and morale, as well as the region's overall economy that is reliant on cross-border labor.
- Economic Impact: The broader economic repercussions could be significant, particularly in regions with high levels of cross-border economic interdependence. This includes both trade and labor, which play a pivotal role in regional economies adjacent to Germany.
While the Association of Foreign Trade and the DIHK have not yet made specific statements regarding the exact impact of Dobrindt's border control plans on trade and commuters in Germany, these issues are commonly flagged concerns amidst increased border control.
The tougher border control proposals outlined by Interior Minister Alexander Dobrindt have sparked worries within the business sector, particularly concerning the impact on cross-border trade and commuters. Economists worry about potential delays and costs associated with stricter border checks, which could affect the efficiency of supply chains and the competitive edge of German businesses.
The DIHK expert also raised concerns about stricter restrictions for cross-border workers, including those in retail, gastronomy, and healthcare, as these sectors heavily rely on unimpeded flow of goods and workers. The broader implications of such restrictions extend to regional economies with high levels of cross-border economic interdependence.
