Economic reports and analyses from the European Union or financial institutions

Romania, Bulgaria Join Schengen Zone of 29 Countries Starting January 2025 After Austria Lifts Veto

Dec 12, 2024, 06:02 PM

The European Union has approved the full membership of Romania and Bulgaria into the Schengen Area, effective January 1, 2025. This decision, announced after a 13-year wait, follows Austria's removal of its long-standing veto, which had been based on concerns over border security and migration. The approval means the elimination of land border controls between the Schengen Area and the two countries, as well as between Romania and Bulgaria themselves. The Schengen Area, now comprising 29 countries, allows free movement across borders for over 420 million people. Romania and Bulgaria had already eliminated air and sea border checks earlier this year. The accession is expected to bring significant economic benefits, including reduced logistical costs, shorter border waiting times, and increased attractiveness for foreign investment, with Bulgaria estimating a financial gain of €800 million annually. Austrian support for the decision came after a tripartite border protection package agreement with Romania and Bulgaria to enhance security along the Bulgarian-Turkish border. Romanian President Klaus Iohannis and Prime Minister Marcel Ciolacu hailed the decision as a historic milestone, emphasizing its economic and strategic importance.