While it may be too soon to gauge the full impact of Romania and Bulgaria’s accession to the Schengen Area, the EU’s decision on 01 January 2025, after a 13-year wait, is undeniably a positive milestone for the road freight market.

Since 31 March 2024, the two countries have been partial Schengen members, allowing internal air and sea border controls to be lifted. However, the European Economic and Social Committee (EESC) urged the Council of the European Union to set a firm deadline for the removal of land border controls between Bulgaria, Romania, and other Schengen Member States by the end of 2024. The ultimate decision to incorporate the two nations was thus made during the EU Justice and Home Affairs Council meeting on 12 December 2024.

It is widely recognized that Bulgaria and Romania faced substantial economic, environmental, and political challenges due to their partial integration into the EU. Companies in both countries bore billions of euros in annual costs from increased logistics expenses, delivery delays, and rising fuel and driver wages. These burdens were ultimately passed on to consumers. Furthermore, the partial integration had adverse effects on the environment, tourism, and cross-border labour mobility, among other areas.

For instance, a comprehensive study conducted by the Economic Research Institute of the Bulgarian Academy of Sciences (ERI) found that Bulgaria’s partial accession to the Schengen Area has led to an annual average loss exceeding €834m for the Bulgarian economy. This loss includes direct, indirect, and environmental impacts.

Although there are no comparable figures for Romania, estimates indicate that delays at land borders result in €90m in costs for transport operators, with an additional €2.32bn lost in annual revenues.
With the truck driver shortage already a significant challenge in the EU, drivers reported waiting up to 20 hours at border crossings in Bulgaria and Romania. Beniamin Lucescu, Head of the Romanian Transport Federation, stated, “It was a complete waste of time for drivers, who couldn’t even stop to rest because they had to move their vehicles every 10 minutes.”

Romania’s and Bulgaria’s full accession is expected to have significant economic and logistical impacts. Joining the Schengen Zone is projected to boost both countries’ gross domestic product (GDP) by at least one percentage point. Transport Minister Sorin Grindeanu emphasized that the removal of systematic border checks will significantly reduce waiting times for both freight and passenger transport. For example, rail transit times at major border crossings like Curtici and Valea lui Mihai are estimated to decrease by approximately 30 minutes per train.

Similarly, road freight transport will no longer face delays at key crossing points such as Nădlac, Giurgiu, and Vama Veche. Experts anticipate a notable increase in economic growth, with Romania alone forecasting a 2% rise in trade volume due to faster and more efficient border crossings.

According to Ti’s latest European road freight market estimates, in 2025, the Romanian and Bulgarian road freight markets are expected to grow by 4.1% and 3.5%, respectively.

Author: Shruti Sasidharan

Source: Ti

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