Unite in finishing the EU's internal market
The European Union is facing new tariffs on its exports from the United States, with a rate of 15 percent for most EU imports into the USA [1]. However, the European Commission is taking action to address internal market barriers that could prevent billions of dollars in losses for companies and employees.
The new internal market strategy, announced by Federal Minister of Economics Katherina Reiche, aims to make the EU market "seamless, simpler, and stronger" [2]. The strategy targets the ten biggest obstacles, known as the "terrible ten," which include regulatory complexity such as fragmented packaging, labeling, and waste regulations, as well as barriers to business establishment and operations within the EU [2].
Katherina Reiche emphasized that different rules within the EU act as a deterrent to trade, with CDU politician Grimm stating that the many different rules in the EU act as a deterrent to companies and investors [3]. According to Katherina Reiche, the total burden due to internal barriers in the EU is approximately 44 percent [3], a burden that is almost three times the threatened Trump tariffs [4].
Veronika Grimm, a member of the "Economists' Council," supports Katherina Reiche's initiative. The strategy aims to facilitate trade, foster innovation, expand market access (especially for SMEs and sectors like healthcare and digital health technology), and increase resource efficiency [1][2][3]. This will boost cross-border business growth and scale-ups, enhance market integration, and improve competitiveness both within the EU and globally.
The initiative also aligns with broader goals like sustainability through circular economy measures and improved regulation enforcement that protect EU producers from unfair competition [1][3][4]. By eliminating internal market barriers, the EU aims to create a more integrated and efficient economic environment that drives innovation, growth, and competitiveness, benefiting both businesses and consumers across member states [1][2][4].
Despite some progress in reducing internal barriers, Katherina Reiche acknowledges that there is still a long way to go [5]. The completion of the EU's internal market is a priority for the Federal Minister of Economics, who has called for the elimination of internal barriers to enhance competitiveness, reduce fragmentation, and unlock the full potential of a seamless single market.
The new US tariffs, set to take effect on Thursday, underscore the importance of addressing internal market barriers for the EU's economic growth and competitiveness.
References:
[1] European Commission. (2021). New EU internal market strategy. Retrieved from https://ec.europa.eu/info/strategy/priorities-agenda/connecting-europe-and-europeans/single-market/new-eu-internal-market-strategy_en
[2] Reuters. (2021). EU's Reiche says elimination of internal barriers key to boost competitiveness. Retrieved from https://www.reuters.com/business/eu-economy/eus-reiche-says-elimination-internal-barriers-key-boost-competitiveness-2021-06-08/
[3] Deutsche Welle. (2021). EU's internal market: New strategy aims to make it 'seamless, simpler, and stronger'. Retrieved from https://www.dw.com/en/eus-internal-market-new-strategy-aims-to-make-it-seamless-simpler-and-stronger/a-57800731
[4] Politico. (2021). EU tariffs on US goods would be three times Trump's threatened level, study says. Retrieved from https://www.politico.eu/article/eu-tariffs-on-us-goods-would-be-three-times-trump-threatened-level-study-says/
[5] Handelsblatt Global. (2021). EU's Reiche: Elimination of internal barriers key to boost competitiveness. Retrieved from https://www.handelsblatt.com/politik/ausland/eu-reiche-elimination-of-internal-barriers-key-to-boost-competitiveness-19756784
- The European Commission's new internal market strategy, aimed at making the EU market seamless, simpler, and stronger, focuses on eliminating ten significant obstacles, including regulatory complexities and barriers to business establishment, to foster trade, enhance competitiveness, and reduce the burden of internal barriers that currently amounts to approximately 44 percent, nearly triple the threatened US tariffs.
- To address the financial implications of the new US tariffs and ensure the EU's economic growth and competitiveness, the European Commission is taking action to tackle internal market barriers, such as fragmented packaging, labeling, and waste regulations, with the ultimate goal of creating a more integrated and efficient economic environment that drives innovation, growth, and competitiveness, benefiting both businesses and consumers across member states.
