Tensions over the economic refugee crisis threaten a tightening of borders which could severely disrupt European trade.
Ashley Owen, head of investment strategies at AES International, said: “The tightening of border controls in parts of Eastern Europe as a consequence of the refugee crisis could be the start of a worrying trend which may damage European GDP.”
Owen continued: “The Schengen agreement allows free movement of people and goods through the majority of the European Union. Its economic impact is hard to accurately measure. However, it’s fair to assume that intercontinental trade is significantly boosted by the close country ties the agreement has enabled and that any threat to this arrangement would have consequences.”
The AES International professional went on to state: “The political friction could further threaten imports and exports between European countries and place trade ties under pressure. This would unduly hit SMEs which do business within Europe. All of this is very disappointing as the influx of such high numbers of people at working age should provide a real economic boost over the coming decades if the process is handled correctly.”
Founded in 2004, AES International is a financial services organisation serving the international, cross-border and multi-jurisdictional marketplace.
Headquartered in the UK, the organisation is regulated to provide advice in 36 countries across Europe and the Middle East and employs 150 financial professionals.