How to build European services markets
European services markets are still overwhelmingly national. There are big economic gains to be made from opening them up.
- Europe’s leaders are casting around for ways to improve the EU’s economic performance. In the long term, a more integrated single market for services could improve Europe’s weak productivity growth.
- The EU’s services markets are mostly national. So markets are small, Europe’s services firms do not face enough competition, and productivity growth is slow.
- The EU should make member-states fully implement existing directives designed to free up services; move towards mutual recognition of each other’s services regulations; and stop member-states watering down Brussels directives when they are incorporated into national laws.