Critics assert stringent border controls impede economic growth - Consulted by the Commission on the Matter
Tightened Border Controls Affect Berchtesgaden Economy, IHK Claims
The Bavarian branch of the Chamber of Industry and Commerce (IHK) has criticized the recent tightening of border controls in Austria, citing revenue losses for the local economy in the Berchtesgaden region and hour-long delays in the delivery of goods.
Manfred Goessl, CEO of IHK Munich and Upper Bavaria, stated that the retail, gastronomy, and hospitality sectors in the region have experienced a drop in revenue by as much as 20%. Companies have also reported significant delays in the delivery of goods and hours of uncertainties, he added. Commuters are also reportedly facing considerable delays.
Mr. Goessl advocated for a restrained implementation approach and a balanced policy to mitigate these impacts. The tightened controls had been part of the election programs of the Christian Social Union (CSU) and were implemented by Federal Minister of the Interior, Alexander Dobrindt (CSU), shortly after he took office. CSU leader Markus Söder recently called for an increase in the number of federal police to enable more border and train station checks.
The German Industry and Trade Association had previously criticized the tightened controls. However, open criticism from the Bavarian economy towards CSU's policy is relatively rare, given the presence of CSU-affiliated functionaries in prominent positions in several large economic associations.
Potential economic consequences of tightened border controls might include decreased foot traffic and sales in retail sectors, as well as reduced revenue and potential job losses in the gastronomy and hotel industries, which rely heavily on cross-border trade and tourism. In an attempt to counteract these impacts, the IHK could lobby for policy changes, support local businesses, or promote tourism. These responses are speculative and based on general economic principles until IHK provides specific policy responses.
- The employment policy of small-businesses in the Berchtesgaden region may be negatively impacted due to the revenue losses and delays in delivery of goods caused by tightened border controls.
- In light of the economic implications, there is a need for policy-and-legislation that balances security measures with business interests, with the IHK advocating for a restrained implementation approach.
- The tightened border controls, initially part of CSU's election programs, have brought forth criticism from the Bavarian economy, suggesting potential policy changes to address the economic consequences in sectors like retail, gastronomy, and hospitality.
