The Schengen Agreement makes things both easier and harder for people living inside and outside its borders. The good part for people living outside Schengen is that a tourist visa for one the many member states is valid for all of them. The bad part is that you will have to leave for 90 days after 90 days.
Except Ireland and the UK all EU countries are to implement the Schengen Agreement. Norway, Iceland and Switzerland are not members of the EU but have implemented the Schengen rules. As of July 2009 the following countries are participating:
The remaining four EU member states, Bulgaria, Croatia, Cyprus and Romania, are obliged to eventually join the Schengen Area.
dark blue - no visa required, Schengen area; light blue - no visa required, special territories of Schengen member states; dark green - no visa required (annex II), red - visa required (annex I); brown - visa required (annex I), transit visa required; pink - passport not recognized; gray - no information.
Overstaying Schengen visa
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If you overstay your 90 days visa, consequences often depend on your departing country. Spain for instance is known to be quite relaxed, where as Poland or Scandinavian countries can be very harsh.
See also borders.