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Islamic State could cause serious damage to Hungary
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According to origo.hu, it would cause tremendous damage to Europe, if the Schengen area would fall apart due to the terrorist threat and the refugee crisis. Because of the long-term restoration of border controls, commerce would become more expensive and slower, tourism would decline, movement of labor would be more difficult. There is a scenario whereby the core countries of the Union would form a mini-Schengen and the periphery (including Hungary) would be disconnected. In the worst case, Schengen may fall completely apart and drag the single currency as well.
The dissolution of the Schengen area would cost billions of euros to whole Europe due to the decline of commerce, analyst Dane Davis thinks, who wrote a study on the economic impacts of the Schengen treaty in 2014.
The slowdown of the road transport would particularly affect the EU, since about half of the transports are taking place on the roads in the Union.
In relation to the gross domestic product (GDP), the biggest losers of the dissolution of Schengen would be the smaller Central European countries like Hungary and Slovakia, because a bigger part of their GDP is from trade within the EU.
By the reintroduction of border controls, labor mobility would reduce, which would cause difficulties not only for job seekers, but for companies looking for workers as well. In terms of international tourism, it would be beneficial if the Schengen rules remained unchanged, origo.hu wrote.
On the downside, countries like Germany are spending 30 BILLION Euros every year for coping with the effects of illegal immigration made possible by open borders.
Add to that the constant rise in cross-border criminal activities such as burglaries and robberies which negatively affect the border regions.
And even the tourism industry is negatively affected by Schengen as you can see now in Paris, for example.
Overall, the idea of uncontrolled borders seems increasingly obsolete and even dangerous in the 21st century.