Schengen at 40: Celebrating freedoms, confronting fractures

June 2025

In June 2025, the Schengen Agreement marks its 40th anniversary. Signed on 14 June 1985 near the small Luxembourgish town of Schengen, the agreement was a bold political experiment to abolish internal border checks among participating European countries. What began as an initiative among five countries, i.e. Belgium France, Germany, Luxembourg and the Netherlands, has since grown into a cornerstone of European integration, enabling seamless travel, trade, and cooperation across 29 countries. These are all EU member states except Cyprus and Ireland. Cyprus is not yet part of Schengen, and Ireland has an opt-out. In addition four non-EU member states are part of the Schengen Agreement: Iceland, Liechtenstein, Norway, and Switzerland. As Europe celebrates this milestone, it is a time not only to reflect on the Schengen Area's achievements, but also to assess its current setbacks and plan for the future.

Economic and social integration

One of the most transformative impacts of Schengen has been economic. By removing internal borders, the agreement has created a more efficient, interconnected European economy. Goods can now move freely across borders, reducing costs and boosting competitiveness. According to road transport data from 2015, the value of goods crossing Schengen borders was estimated at EUR 2.8 trillion per year, a figure which is expected to have grown since then. For businesses, particularly small and medium-sized enterprises (SMEs), the reduction in time and logistical burdens has been hugely beneficial.

Labour mobility has also surged. With around 1.7 million people commuting daily across Schengen's internal borders, labour markets in border regions have become more flexible and dynamic. This has helped to address labour shortages in some areas while creating economic opportunities in others. Furthermore, tourism has flourished under the Schengen Agreement, with travellers enjoying the freedom to explore multiple countries without border checks, thereby enriching cultural understanding and local economies.

Beyond the economic sphere, Schengen has shaped European society. The freedom of movement it enshrines is one of the EU's most tangible achievements. Citizens can travel, study and work across borders with unprecedented ease. Students pursue opportunities in neighbouring countries, while families reunite and friendships flourish across former boundaries, with national borders no longer experienced as a hindrance or time-consuming stop for border controls.

This mobility has contributed to a growing sense of European integration. Cultural exchange and interpersonal connections foster solidarity, particularly among younger generations who have grown up taking borderless travel for granted. In this sense, the Schengen Area is not merely a space of movement, but also one of shared values and interconnected lives.

In times of crisis, the Schengen Area has also enabled effective cross-border emergency responses. Whether facing natural disasters, pandemics or accidents, the ability to mobilise resources swiftly across borders has saved lives and enhanced resilience.

The territorial integration brought about by the Schengen Agreement has also helped strengthen cohesion in Europe by promoting the integration of cross-border regions and enabling people to benefit from communalities and differences on both sides of the border. The practical removal of borders has made many border areas more attractive to investors, innovators, and those looking to settle down.

Cracks in the borderless dream

However, the 40th anniversary coincides with a period of renewed scrutiny. In recent years, the Schengen Area has faced serious challenges. The 2015 migration crisis, terrorist threats and the pandemic have led to several countries reintroducing internal border controls. While some measures were temporary, others have persisted far beyond their initial justification, thus undermining the core principle of free movement.

Currently, internal border checks remain in place in a number of member states, with security or migration control often cited as the reason. However, these checks erode trust, create uncertainty for citizens and businesses, and represent a gradual departure from Schengen commitments. In some cases, what was once exceptional has become the norm.

The political discourse around migration and border control has also hardened in several member states. Rather than addressing the root causes of migration or investing in solidarity mechanisms, some governments have opted for unilateral action. This fragmented approach undermines the integrity of the Schengen area and poses long-term risks to European unity. It also alienates members of the Schengen Agreement. In response to the German government's proposal to introduce permanent border controls, including at the Schengen border crossing, Luxembourg’s Ministry of Home Affairs has launched a dedicated reporting channel for individuals affected by the German-Luxembourg border checks. You can report issues related to delays, infringements of rights or other concerns by emailing to grenzkontrollen@gouvernement.lu (Abre numa nova janela).

Reforms and the road ahead

EU institutions have sought to reinforce the Schengen framework. The 2023 and 2024 State of Schengen Reports called for the modernisation of the Schengen Borders Code, the enhancement of trust among member states and the strengthening of external border management. There are ongoing efforts to digitise border procedures and improve data sharing, with the aim of achieving more effective and less intrusive controls.

The partial accession of Bulgaria and Romania to Schengen in 2024 for air and sea borders is a sign of continued, albeit cautious, expansion. However, debates around the full inclusion of these countries, as well as the broader question of Schengen reform, remain contentious.

Experts advocate a return to a 'merited trust' model, where mutual confidence is established through transparency, compliance and cooperation. Rebuilding this trust is essential if the Schengen area is to continue to deliver on its promises.

A vision worth defending

As we celebrate the 40th anniversary of the Schengen Agreement, it remains one of the most powerful symbols of European integration. It has delivered economic, social and territorial benefits to millions. However, its sustainability hinges on political will, mutual trust, and a commitment to shared solutions.

Reaffirming the Schengen vision requires us to resist the drift towards permanent internal controls and short-term nationalism. It means acknowledging that mobility, openness and cooperation are strengths, not threats. In an era of global instability, a connected and united Europe is more important than ever.

The 40th anniversary is an opportunity to celebrate. It is also a call to action to defend and modernise the Schengen area so that it can continue to thrive in an ever-changing world. A Europe without borders is not a bygone utopia but a vision that is still worth fighting for.

by Kai Böhme

(Abre numa nova janela)