Deringer, Hanna, (2016), “The Cost of Non-Schengen for the Single Market”, European Centre for International Political Economy, Μay
A suspension of the Schengen Agreement would damage the European economy, in particular by undermining the European single market. And it would not just damage the movement of people and labour in Europe. Several studies show that the Schengen Agreement also eases the free flow of goods, services, and capital. Suspending Schengen would therefore constrain all four freedoms. Over time, intraEU trade flows, European value chains and the competitiveness of the European economy would be hurt. At a time of already sluggish productivity and trade growth, this would severely damage the European economy. As European Commission President Jean-Claude Juncker warned, restoring border controls “could kill off the internal market”.