The cost of non-Europe: the untapped potential of the European Single Market

productivity-innovation-and-new-economy||116
Sector: Productivity, Innovation and New Economy
Client: European Commission – Bureau of European Policy Advisors (BEPA)
Published: October, 2013
Document type: Report 
Tagged: modelling qualitative analysis quantitative analysis EC/EEA

While the growth-creating potential of the Single Market has long been recognised, evidence on the remaining untapped potential of the Single Market (where such potential lies, how much additional growth it could deliver, and which policy measures would help unlock it) was largely missing. London Economics, in association with PwC, were commissioned by the European Commission (EC) Bureau of European Policy Advisors (BEPA) to conduct an important study to assess this ‘Cost of non-Europe’.

The purpose of the study was to support preparation and targeting of the next phase of the Single Market re-launch by providing economic evidence on the untapped potential of the Single Market, in terms of potential impact on Europe’s overall long-term economic performance (including sustainable growth, jobs, and consumer welfare). Specifically, the research identified a limited number of priority sectors where further integration within the Single Market was likely to make the most significant contribution to sustainable EU growth. Efforts towards further market integration could thus be targeted precisely to areas likely to yield the most significant benefit. For each high priority sector, the study identified specific barriers to capturing the untapped growth and jobs potential and their policy implications to unleash the Internal Market’s full potential, and lastly estimated their growth potential impact.

Further to its central research objective, the study has already contributed to ongoing EC work, including the Single Market Act II and the 2013 Annual Growth Survey (AGS), and has been integrated into the Communication on “Better Governance for the Single Market” as the recommended methodology to prioritise the Commission’s actions in monitoring the implementation of the Single Market.