EU Battles To Defend Schengen

EU member states are battling to defend the open-border Schengen agreement as Italy and France push for tighter controls in the wake of increasing immigration.

London (Pryce Warner International) May 24th, 2011 – Over the past several weeks Nicholas Sarkozy and Silvio Berlusconi have called for tighter regulations on border controls after seeing a large increase in the amount of migrants from North Africa.

The political turmoil in North Africa has caused over 30 000 people to cross the Mediterranean in the hopes of joining family members in France and Italy. With upcoming elections in both countries and the approval ratings of both heads of state very low, politicians are seizing on the issue as anti-immigration sentiments are growing rapidly in both nations.

With no formal decision made as yet, France has begun to adopt a more stringent approach on it’s south eastern border which some say contravenes the Schengen open border policy. Even in Denmark, a tide of anti-immigration sentiment has led to tighter border controls.

France’s European Minister and senior members of the European commission have decried this move and the calls for tighter controls as attempts to score political points in preparation for upcoming elections.

Greece has also seen higher levels of immigrants entering the country through it’s border with Turkey, which has led also led some to suggest that tighter border controls are needed in countries that have border nations outside the EU.

As all EU nations have an open border policy, countries with borders outside the EU offer the opportunity for people to enter the EU then move to whichever country they please.

The battle over Schengen comes at a time when far-right political parties are gaining headway in mainstream politics across Europe. Switzerland, France, Italy, Denmark and Sweden have all seen parties with hardline anti-immigration stances win more seats. France and the UK are also planning on adopting caps on non-EU migrants.

Despite the increased momentum for reform of the Schengen agreement many politicians and business leaders have come out in support of Schengen, citing the free movement of people inside the EU as vital for economic growth.

Proponents of reform have cited the fact that tighter controls on EU/non-EU borders in not enough, as once people have entered the EU they are free to travel any country. They say that this fact means internal border controls need to adopt tighter controls.

Expats in particular will need to stay abreast of any developments on the issue as they often rely on schengen not just for ease of business travel, but also for visiting family around Europe.

With the pro and con side presently in a stalemate, the future of Europe’s open border policy is in a state of uncertainty.

David Harra, a Senior Market & Investment Analyst with Pryce Warner International, a financial services company for expats, commented: “It is not just Expats that rely on schengen for easy movement around Europe. Countless businesses and industries rely on the agreement as a means for easier transportation of goods and services. The tourism industry in particular will be deeply affected should any reforms be put into place. Anti-immigration sentiment has been rising in Europe recently and this battle over Schengen seems an attempt by some governments to score political points without considering the long-term implications of tighter controls. The EU’s stability fundamentally relies on the free movement of people as members of individual nations have the freedom to move between countries for work to the benefit of not just individual business and nations, but the EU as a whole.”

Pryce Warner International Group provide International Asset & Investment Management, Independent Financial Advice & QROPS Overseas Pensions.

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By: Aneil Fatania
Financial Editor
Pryce Warner International Group
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