Tuesday, September 15, 2015

Schengen Agreement In Jeopardy As Germany Closes Borders

News
Germany has closed its borders with Austria. Austria, in turn, deploying 2,000 soldiers for the purpose, closed its border with Hungary. The Czech government sent 200 additional police officers to the border with Austria, and the Netherlands intends to conduct random checks on incoming travelers from Germany. This appears to be the beginning of the end of the Schengen Agreement, the foundation for the freedom of movement within the United States of Europe. This agreement, the gradual removal of border checks and harmonization of visa policies, was intended to unify Europe and the Euro. The decision comes only two weeks after Germany declared they would accept an unlimited number of refugees and the world celebrated its "Willkommenskultur (welcoming culture)”.

The refugee crisis, driven by war, has the potential to become a major source of finger pointing as the global economy contracts. Refugees have no impact on the economic cycles and trend but they will be blamed.

Headline: Europe Fortifies Frontier as Germany Imposes Border Controls

European Union countries followed Germany’s lead to fortify their frontiers, slowing the movement of goods on the continent as lines of cars formed in some border areas.

Germany’s move on Sunday to introduce the temporary controls on the southern border with Austria, where thousands of migrants have been crossing into the country, set off a ripple effect as others further tightened their frontiers. Austria and Slovakia said they will send more troops to patrol their borders, while Poland said it was ready to take similar actions should such a move prove necessary. The Netherlands also planned to beef up border checks as Hungary blocked a main railroad link used to enter the country from Serbia.


more

----------------------------------

Market-driven money flow, trend, and intermarket analysis is provided by an Insights key.