The European Policy Centre (EPC) and some of Europe’s largest technology firms commissioned Copenhagen Economics to conduct a study on the digital single market in Europe.
The study shows that failure to create a Digital Single Market will cost Europe at least 4.1% of GDP by 2020. Differences in regulation between member states leads to a fragmented business environment for European innovators and entrepreneurs. As a result, few technology starts-ups expand their businesses to neighboring EU countries. Instead they prefer to expand in the US market. Lacking the benefits of large scale home market, it slows down the rate of innovation, and European firms will not benefit fully from investments in high-speed internet infrastructure.
A truly integrated European single market is a key driver for productivity and competitiveness, promoting growth and innovation. It will allow companies in Europe to grow to scale and increase their global competitiveness, and not only benefit businesses but also consumers: they will benefit from low prices, better quality and more choice.
The EPC project concludes that action is needed to establish what could be called the fifth freedom in Europe, namely the free movement of information across European borders To free the bytes, the political leadership should encourage a better online business environment, help establishing consumer trust, and create a friction free European internal market for the digital economy. EPC and its partners identifies five policy priorities.
Read more on the EPC website
For further information, please contact partner Martin Hvidt Thelle