Economic modelling for the Single Market performance report 2019

The European Single Market permits free movement of goods and services within the European Union (EU). By stimulating competition and trade, it improves efficiency, it raises quality and helps cutting prices. The European Commission has a strategy in place to unlock the full potential of the Single Market by improving mobility for service providers, facilitating innovation, enabling across-borders retailing, and enhancing EU-wide access to goods and services. This Policy Insight presents the results of the modelling exercises on the macroeconomic effects of a barriers reduction in regulated business services sectors and construction. Simulations made with the RHOMOLO and FIDELIO models suggest that price reductions in relatively small sectors may have sizeable GDP effects in the EU with sizeable sectoral and country spillovers. For instance, tackling the regulatory restrictiveness in legal, accounting, architectural and engineering services may increase EU value added by up to €41 billion, generating jobs for 500,000 persons, after ten years.

Authors:

Christensen Martin , Barbero Jimenez Javier , Rocchi Paola , Conte Andrea, Marschinski Robert , Salotti Simone