Making EU trade in services work for all

Making EU trade in services work for all

Back in 2006, EU policy makers recognised the importance of a well-functioning Single Market for services. Since then, services have become even more important for overall EU competitiveness:

  • Services account for an increasing share of the EU economy

  • The manufacturing and services sectors are increasingly intertwined

  • Services are an integral part of the Digital Economy and innovation

From a business perspective, the reality of the Single Market for services falls short of expectations. The Single Market has on average reduced trade costs by 20 per cent for goods but only 7 per cent for services. Resilience and security measures require resources.

Main conclusions of our study

This report identifies four important gaps:

  • Adequacy gap – ensuring the rules are fit for purpose

  • Implementation gap – ensuring that EU rules are implemented in national rules and laws

  • Enforcement gap – follow up with proportionate sanctions for non-compliance at EU and national level

  • Reality gap – ensuring it works in practice

This calls for a Single Market. Not one Single Market for goods, another for services and a third for digital activities. This report points to six concrete areas where improvements to the Single Market for services can be made.

The study is commissioned by the Irish Department of Business, Enterprise and Innovation, the Ministry of industry and Trade Czech Republic, the Danish Ministry of Industry, Business and Financial Affairs and the Ministry of Economic Affairs and Employment of Finland.

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