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Paris attacks: what would happen if Schengen crumbled?

A compromise on freedom of movement rules is now the EU's greatest economic risk

By George Magnus  

Merkel and her fellow EU leaders are under pressure to save Schengen. © Sean Gallup/Getty Images

As an economist, it’s always tough to know what it’s appropriate to write about following human tragedies. The mindless murders in Paris last weekend are no exception. To date, acts of terrorism, horrific as they may be, haven’t normally left permanent macro scars on the economy. But in this respect, most of the world has been largely fortunate.…

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