The German economy stands to lose hundreds of billions of euros if Europe reintroduces internal border controls to help manage its influx of migrants, a study showed Monday.
Europe's largest economy could lose between 77 billion and 235 billion euros (84.9 billion-259.1 billion dollars) by 2025 if countries in Europe's visa-free Schengen zone start checking passports at their borders, according to a study conducted by Prognos AG for the Bertelsmann Foundation think tank.
According to the study, longer waits at border checkpoints would lead to higher production costs for companies and higher prices for consumers.
"If Europe's internal barriers go back up, it will put even more pressure on growth," said Bertelsmann Chief Executive Officer Aaart De Geus. "Ultimately, it is the people who will pay."
The effects of internal border controls would ripple across European economies, leading the region's gross domestic product to drop by as much as 470 billion euros, the think tank said.
The estimates were made using a macroeconomic model that covers 42 countries and more than 90 per cent of global economic activity.