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Steps towards a deeper economic integration: the internal market in the 21st century

Author

Listed:
  • Fabienne Ilzkovitz
  • Adriaan Dierx
  • Viktoria Kovacs
  • Nuno Sousa

Abstract

The aim of this paper is to analyse the effects of the implementation of the Internal Market Programme and to propose ideas on how its potential can be better exploited. First, the paper offers a broader perspective to the analysis of the Internal Market by exploring its close links to the rapidly changing economic environment. Second, it puts together a comprehensive body of empirical evidence, based on the analysis of trade, FDI, M&A, prices and regulation data, which allows for a thorough stock taking exercise of what has been achieved in terms of European economic integration. Thirdly, it analyses the remaining barriers to the completion of the Internal Market while presenting a critical review of the adequacy of the instruments that have been used so far. Overall the paper concludes that the Internal Market is a powerful instrument to promote economic integration and to increase competition within the EU and that it has been the source of large macro-economic benefits. However, these gains could have been substantially larger if the removal of most of the remaining cross-border barriers was achieved.

Suggested Citation

  • Fabienne Ilzkovitz & Adriaan Dierx & Viktoria Kovacs & Nuno Sousa, 2007. "Steps towards a deeper economic integration: the internal market in the 21st century," European Economy - Economic Papers 2008 - 2015 271, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
  • Handle: RePEc:euf:ecopap:0271
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    References listed on IDEAS

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    Cited by:

    1. Rosina Moreno & Jordi Suriñach, 2014. "Innovation adoption and productivity growth: evidence for Europe," EKONOMIAZ. Revista vasca de Economía, Gobierno Vasco / Eusko Jaurlaritza / Basque Government, vol. 86(02), pages 62-87.
    2. Ottaviano, Gianmarco & Pessoa, João Paulo & Sampson, Thomas & Van Reenen, John, 2014. "The costs and benefits of leaving the EU," CFS Working Paper Series 472, Center for Financial Studies (CFS).
    3. Méjean, Isabelle & Schwellnus, Cyrille, 2009. "Price convergence in the European Union: Within firms or composition of firms?," Journal of International Economics, Elsevier, vol. 78(1), pages 1-10, June.
    4. Gabriel Felbermayr & Benjamin Jung, 2011. "Sorting It Out: Technical Barriers to Trade and Industry Productivity," Open Economies Review, Springer, vol. 22(1), pages 93-117, February.
    5. Jacques Pelkmans & Lourdes Acedo Montoya & Alessandro Maravalle, 2008. "How product market reforms lubricate shock adjustment in the euro area," European Economy - Economic Papers 2008 - 2015 341, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    6. Jürgen Janger, 2008. "Supply-Side Triggers for Inflation in Austria," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 2, pages 34-69.
    7. Umber, Marc P. & Grote, Michael H. & Frey, Rainer, 2014. "Same as it ever was? Europe's national borders and the market for corporate control," Journal of International Money and Finance, Elsevier, vol. 40(C), pages 109-127.
    8. repec:oup:ecpoli:v:32:y:2017:i:92:p:651-705. is not listed on IDEAS
    9. Swati Dhingra & Hanwei Huang & Gianmarco Ottaviano & João Paulo Pessoa & Thomas Sampson & John Van Reenen, 2017. "The costs and benefits of leaving the EU: trade effects," Economic Policy, CEPR;CES;MSH, vol. 32(92), pages 651-705.
    10. Fritz Breuss, 2009. "Ten Years of EMU – Achievements, Drawbacks and Challenges," WIFO Monatsberichte (monthly reports), WIFO, vol. 82(1), pages 61-84, January.
    11. Micossi, Stefano, 2016. "Thirty Years of the Single European Market," CEPS Papers 11919, Centre for European Policy Studies.
    12. Patrick Leblond, 2011. "The Global Financial Crisis and the European Integration Project," CIRANO Working Papers 2011s-55, CIRANO.
    13. Fritz Breuss, 2009. "Ten Years of EMU – Achievements, Weaknesses, Challenges," Austrian Economic Quarterly, WIFO, vol. 14(1), pages 49-72, April.
    14. Balaguer, Jacint & Ripollés, Jordi, 2014. "Are the transport fuel retail markets regionally integrated in Spain? Evidence from price transmission," Economic Modelling, Elsevier, vol. 42(C), pages 323-332.
    15. Claudia Busl & Marcus Kappler, 2013. "Does Foreign Direct Investment Synchronise Business Cycles? Results from a Panel Approach," WWWforEurope Working Papers series 23, WWWforEurope.
    16. Schouteten, Joachim & Van Lembergen, Katrien & Molnár, Adrienn & Tarantini, Federico & Heene, Aimé & Gellynck, Xavier, 2014. "The European Food Prices Monitoring Tool as a Prerequisite for more Price Transparency in the Food Chain," 2014 International European Forum, February 17-21, 2014, Innsbruck-Igls, Austria 199387, International European Forum on Innovation and System Dynamics in Food Networks.
    17. Patrick Messerlin, 2010. "The European Community commercial policy," Sciences Po publications info:hdl:2441/5l6uh8ogmqi, Sciences Po.
    18. Jarig Sinderen & Ron Kemp, 2008. "The Economic Effect Of Competition Law Enforcement: The Case Of The Netherlands," De Economist, Springer, vol. 156(4), pages 365-385, December.
    19. Patrick Messerlin, 2010. "The European Community commercial policy," Working Papers hal-00972936, HAL.
    20. Paul-Bogdan Zamfir, 2013. "Romania Alignment To Eu Requirements Concerning The Services Integration In The Internal Market," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 2, pages 329-334, April.
    21. Christos N. Pitelis & Pellumb Kelmendi, 2011. "European Industrial Policy: Perspectives, Trends and a Sustainability-focused New Framework," Chapters,in: International Handbook on the Economics of Integration, Volume II, chapter 2 Edward Elgar Publishing.
    22. Stefano Micossi, 2016. "30 Years of the Single European Market," Bruges European Economic Policy Briefings 41, European Economic Studies Department, College of Europe.
    23. Jacques Pelkmans, 2008. "Economic Approaches of the Internal Market," Bruges European Economic Research Papers 13, European Economic Studies Department, College of Europe.
    24. Pitelis, Christos & Kelmendi, Pellumb, 2009. "The political economy of European anti-trust and industrial policy," MPRA Paper 23941, University Library of Munich, Germany.

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