Single Market initiatives may achieve only two thirds of their expected economic gains due to poor governance in member states. This corresponds to economic growth potential of almost one percent of GDP being lost to incorrect and poor application of existing EU legislation.
The Nordic Innovation study on the EU growth initiative shows that the problem is greatest in four key areas of the Single Market: taxation, services, public procurement and mutual recognition of goods.
The report also shows that it is the largest EU member states that account for most of the problems. If the study is applied to the Single Market Act, which was launched by the Commission in April this year, the Act may only realise two thirds of its estimated economic gains.
Based upon the findings in the report the European Parliament together with Nordic Innovation will arrange an open conference in the first week of October - debating how to secure better enforcement of the Single Market in the member states.
The report was prepared by Copenhagen Economics.
You can download the report for free.
More information about the conference will follow.