Guest post: Schengen - the great benefits for Romania
Guest writer Yannis Karamitsios analyses the top gains for Romania after the country’s full Schengen accession.
Romania Insider
· Updated · 5 min read
Guest writer Yannis Karamitsios analyses the top gains for Romania after the country’s full Schengen accession.
Romania and Bulgaria are the newest members of the Schengen Area. Border controls were lifted for air and sea travel on 31 March 2024 and land border controls on 1 January 2025, more than 17 years after they acceded to the European Union.
The Schengen Convention establishes the complete abolition of systematic internal border controls and a common visa policy. The Schengen Area operates very much like a single state for international travel purposes with external border controls for travellers entering and exiting the area, and common visas, but with no internal border controls. It currently consists of 29 European countries (mostly but not only EU members) covering a population of over 450 million people and an area of 4,595,131 square kilometres.
Bulgaria and Romania have technically met the Schengen accession criteria since 2011, and the European Commission and the European Parliament have repeatedly expressed their support. However, political opposition—mainly from the Netherlands and Austria—had previously delayed their accession through the side of the EU Council.
Schengen membership offers a wide range of financial benefits for Romania, as it enhances its position within the European Union (EU) and facilitates economic integration, trade, investment, and tourism. Below are the key financial advantages for the country:
1. Increased Trade and Market Access
One of the most significant financial benefits of Schengen membership is the seamless access to the single European market. By eliminating internal border controls, Schengen allows Romanian goods and services to flow more freely to 28 other European countries. For Romania, this translates into lower costs for businesses engaged in cross-border trade. The absence of customs checks and border delays reduces transportation costs, streamlines logistics, and minimizes the administrative burden on companies.
Romania’s key trading partners are mostly within the EU: Germany, Italy, Hungary, France, Bulgaria, Poland. Schengen membership makes trade with these countries smoother, faster, and more cost-effective. This improved market access supports Romania’s export-driven sectors, such as machinery, automotive parts and agricultural products.
2. Increased Foreign Direct Investment (FDI)
Schengen membership enhances Romania’s attractiveness as an investment destination. The free movement of people and goods across Schengen borders makes it easier for multinational companies to establish operations in Romania.
Foreign companies are now more likely to invest in Romania, knowing that they can move both goods and personnel freely within the Schengen Area. Additionally, Schengen membership may also attract investments in sectors such as logistics, transportation, and services, as businesses benefit from Romania’s strategic location and proximity to other European economies.
