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src="https://secure.gravatar.com/avatar/3f66d34481de8beaf1ba9946b83ff62e?s=28&d=mm&r=g" class="rounded-circle mr-1" alt="Members' Research Service" /> <span class="author"> By <a href="https://epthinktank.eu/author/eprsdiraproductsupport/" title="Posts by Members' Research Service" rel="author">Members' Research Service</a> </span> <span class="date ml-1"> / October 21, 2024 </span> </div> </div> <div class="col-lg-6 share"> </div> </div> <hr class="brd-bl mb-4 mt-1 d-none d-sm-flex"> <h1 class="title f-main my-3 font-weight-bold">Deepening the single market in the light of the Letta and Draghi reports [Policy podcast]</h1> </div> </div> </div> </div> </header>  <div class="container post-container pt-4"> <div class="row pb-5"> <div class="col-lg-7 offset-lg-1 ">  <div class="lead c-meta mb-4 f-main"><p>For more than 30 years, the single market has served as a cornerstone of European Union economic cooperation and growth. It remains an example of the wide-ranging benefits, both direct and indirect, brought about by European integration. </p> </div>  <div class="mb-4"> <div class="featured-img"><img src="https://i0.wp.com/epthinktank.eu/wp-content/uploads/2024/10/EPRS-Briefing-762469-Deepening-single-market-FINAL.png?fit=1000%2C1000&ssl=1" alt="Deepening the single market in the light of the Letta and Draghi reports [Policy podcast]" /></div> <div class="img-caption f-main c-meta small text-right">© lkeskinen / Adobe Stock</div> </div>   <div class="post-content l-1 lh-black mb-4 clearfix"> <p><em>Written by Guillaume Ragonnaud.</em></p> <p>Often considered the ‘cornerstone’ of European integration, the single market now serves 449 million consumers and 31 million active companies, most of which are small and medium-sized enterprises (SMEs). It has delivered substantial economic benefits, ranging between 8 % and 9 % of European Union gross domestic product (GDP). Trade between Member States has risen steadily over the years, and today accounts for an estimated 56 million European jobs. The EU is among the largest trading blocs in the world, representing 15 % of world GDP, compared with the United States at 16 % and China at 19 %. The single market’s attractiveness for foreign businesses also serves as an important geopolitical tool, enhancing the EU’s influence amid geopolitical shifts.</p> <p>Recent shocks, such as the COVID-19 pandemic and the war in Ukraine, have revealed not only the single market’s vulnerability in crises, but also the extent to which the EU’s competitiveness relies on a well-functioning single market, ensuring unhindered access to the goods, services, and strategic inputs EU supply chains need.</p> <p>Although the single market has generally been a success, recent analyses, including those put forward by Enrico Letta and Mario Draghi in 2024, clearly demonstrate that it remains highly fragmented, limiting EU companies’ ability to scale up and compete internationally, and preventing EU citizens from reaping the full benefits. For instance, 60 % of the barriers companies face today are of the same type as were already reported 20 years ago. The two reports converge on many points, not least on the need to take rapid action to deepen the single market.</p> <p>Advancing the single market requires action in multiple policy fields, its digital dimension gaining increasing importance in recent years. Ultimately, a well-functioning single market, fit for the green and digital transitions, new technological developments and changing geopolitical realities can be seen as central to the EU’s industrial policy.</p> <hr class="wp-block-separator has-alpha-channel-opacity"/> <p><strong>Read the complete briefing on ‘</strong><a href="https://www.europarl.europa.eu/thinktank/en/document/EPRS_BRI(2024)762469" target="_blank" rel="noreferrer noopener"><strong>Deepening the single market in the light of the Letta and Draghi reports</strong></a><strong>‘ in the Think Tank pages of the European Parliament.</strong></p> <p><strong>Listen to podcast ‘<strong><strong><strong><strong>Deepening the single market in the light of the Letta and Draghi reports</strong></strong></strong></strong>‘ on <a href="https://youtu.be/Rmwyu35WnN0" target="_blank" rel="noreferrer noopener">YouTube</a>.</strong></p> <figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper"> <div id="_ytid_92789" class="__youtube_prefs__ __youtube_prefs_gdpr__ epyt-is-override " allowfullscreen data-no-lazy="1" data-skipgform_ajax_framebjll=""><p><strong>Please accept YouTube cookies to play this video.</strong> By accepting you will be accessing content from YouTube, a service provided by an external third party.</p> <p><a href="https://policies.google.com/privacy" target="_blank" rel="noopener">YouTube privacy policy</a></p> <p>If you accept this notice, your choice will be saved and the page will refresh.</p> <button type="button" class="__youtube_prefs_gdpr__">Accept YouTube Content<img data-recalc-dims="1" decoding="async" src="https://i0.wp.com/epthinktank.eu/wp-content/plugins/youtube-embed-plus/images/icon-check.png?w=820&ssl=1" alt="accept" data-no-lazy="1" data-skipgform_ajax_framebjll="" /></button></div> </div></figure> <figure data-carousel-extra='{"blog_id":1,"permalink":"https:\/\/epthinktank.eu\/2024\/10\/21\/deepening-the-single-market-in-the-light-of-the-letta-and-draghi-reports\/"}' class="wp-block-gallery has-nested-images columns-1 is-cropped wp-block-gallery-1 is-layout-flex wp-block-gallery-is-layout-flex"> <figure class="wp-block-image size-large"><a href="https://epthinktank.eu/?attachment_id=67712"><img data-recalc-dims="1" decoding="async" width="820" height="309" data-attachment-id="67712" data-permalink="https://epthinktank.eu/2024/10/21/deepening-the-single-market-in-the-light-of-the-letta-and-draghi-reports/eu-trade_trade-in-services-gw/" data-orig-file="https://i0.wp.com/epthinktank.eu/wp-content/uploads/2024/10/EU-Trade_Trade-in-services-GW.png?fit=4330%2C1635&ssl=1" data-orig-size="4330,1635" data-comments-opened="0" data-image-meta="{"aperture":"0","credit":"","camera":"","caption":"","created_timestamp":"0","copyright":"","focal_length":"0","iso":"0","shutter_speed":"0","title":"","orientation":"0"}" data-image-title="EU Trade_Trade in services – GW" data-image-description="<p>The EU hosts the largest single market in the world. Home to 345 million people in 1993, it now numbers 447 million consumers and 31 million active companies. The Commission has stressed that trade within the single market accounts for 56 million European jobs, and the estimated economic benefits range between 8 % and 9 % of EU gross domestic product (GDP). Trade between Member States has risen steadily, with the share of intra-EU exports varying between Member States. For some countries, more than 80 % of their trade is with other Member States (Figure 1). In 2023, intra-EU exports in goods were worth €4 126 billion, intra-EU exports in services were worth €1 348 billion. Intra-EU investments were worth €8 163 billion (data for 2021). Furthermore, in the EU 27, 3.7 % of employees hold the citizenship of an EU country other than the one in which they work, and 2.4 % of tertiary level students come from a different EU country than that in which they are studying. The economic importance of the single market, combined with EU regulatory leadership and its ability to shape international standards in line with EU values, interests and legislation gives rise to what is sometimes referred to as the ‘Brussels effect’, through which the EU is able to project its interests globally, as some third countries adopt ‘EU-style regulations’.</p> " data-image-caption="<p>Evolution of exports of services between EU Member States (left) and share of intra-EU exports in 2023 (right)</p> " data-medium-file="https://i0.wp.com/epthinktank.eu/wp-content/uploads/2024/10/EU-Trade_Trade-in-services-GW.png?fit=300%2C113&ssl=1" data-large-file="https://i0.wp.com/epthinktank.eu/wp-content/uploads/2024/10/EU-Trade_Trade-in-services-GW.png?fit=820%2C309&ssl=1" data-id="67712" src="https://i0.wp.com/epthinktank.eu/wp-content/uploads/2024/10/EU-Trade_Trade-in-services-GW.png?resize=820%2C309&ssl=1" alt="Evolution of exports of services between EU Member States (left) and share of intra-EU exports in 2023 (right)" class="wp-image-67712" srcset="https://i0.wp.com/epthinktank.eu/wp-content/uploads/2024/10/EU-Trade_Trade-in-services-GW.png?resize=1500%2C566&ssl=1 1500w, https://i0.wp.com/epthinktank.eu/wp-content/uploads/2024/10/EU-Trade_Trade-in-services-GW.png?resize=300%2C113&ssl=1 300w, https://i0.wp.com/epthinktank.eu/wp-content/uploads/2024/10/EU-Trade_Trade-in-services-GW.png?resize=200%2C76&ssl=1 200w, https://i0.wp.com/epthinktank.eu/wp-content/uploads/2024/10/EU-Trade_Trade-in-services-GW.png?resize=768%2C290&ssl=1 768w, https://i0.wp.com/epthinktank.eu/wp-content/uploads/2024/10/EU-Trade_Trade-in-services-GW.png?resize=1536%2C580&ssl=1 1536w, https://i0.wp.com/epthinktank.eu/wp-content/uploads/2024/10/EU-Trade_Trade-in-services-GW.png?resize=2048%2C773&ssl=1 2048w, https://i0.wp.com/epthinktank.eu/wp-content/uploads/2024/10/EU-Trade_Trade-in-services-GW.png?resize=265%2C100&ssl=1 265w, https://i0.wp.com/epthinktank.eu/wp-content/uploads/2024/10/EU-Trade_Trade-in-services-GW.png?resize=500%2C189&ssl=1 500w, https://i0.wp.com/epthinktank.eu/wp-content/uploads/2024/10/EU-Trade_Trade-in-services-GW.png?resize=690%2C261&ssl=1 690w, https://i0.wp.com/epthinktank.eu/wp-content/uploads/2024/10/EU-Trade_Trade-in-services-GW.png?resize=1024%2C387&ssl=1 1024w, https://i0.wp.com/epthinktank.eu/wp-content/uploads/2024/10/EU-Trade_Trade-in-services-GW.png?w=1640&ssl=1 1640w, https://i0.wp.com/epthinktank.eu/wp-content/uploads/2024/10/EU-Trade_Trade-in-services-GW.png?w=2460&ssl=1 2460w" sizes="(max-width: 820px) 100vw, 820px" /></a><figcaption class="wp-element-caption">Evolution of exports of services between EU Member States (left) and share of intra-EU exports in 2023 (right)</figcaption></figure> <figure class="wp-block-image size-large"><a href="https://epthinktank.eu/?attachment_id=67713"><img data-recalc-dims="1" decoding="async" width="820" height="314" data-attachment-id="67713" data-permalink="https://epthinktank.eu/2024/10/21/deepening-the-single-market-in-the-light-of-the-letta-and-draghi-reports/eu-trade_trade-in-goods-gw/" data-orig-file="https://i0.wp.com/epthinktank.eu/wp-content/uploads/2024/10/EU-Trade_Trade-in-goods-GW.png?fit=4293%2C1643&ssl=1" data-orig-size="4293,1643" data-comments-opened="0" data-image-meta="{"aperture":"0","credit":"","camera":"","caption":"","created_timestamp":"0","copyright":"","focal_length":"0","iso":"0","shutter_speed":"0","title":"","orientation":"0"}" data-image-title="EU Trade_Trade in goods – GW" data-image-description="<p>The EU hosts the largest single market in the world. Home to 345 million people in 1993, it now numbers 447 million consumers and 31 million active companies. The Commission has stressed that trade within the single market accounts for 56 million European jobs, and the estimated economic benefits range between 8 % and 9 % of EU gross domestic product (GDP). Trade between Member States has risen steadily, with the share of intra-EU exports varying between Member States. For some countries, more than 80 % of their trade is with other Member States (Figure 1). In 2023, intra-EU exports in goods were worth €4 126 billion, intra-EU exports in services were worth €1 348 billion. Intra-EU investments were worth €8 163 billion (data for 2021). Furthermore, in the EU 27, 3.7 % of employees hold the citizenship of an EU country other than the one in which they work, and 2.4 % of tertiary level students come from a different EU country than that in which they are studying. The economic importance of the single market, combined with EU regulatory leadership and its ability to shape international standards in line with EU values, interests and legislation gives rise to what is sometimes referred to as the ‘Brussels effect’, through which the EU is able to project its interests globally, as some third countries adopt ‘EU-style regulations’.</p> " data-image-caption="<p>Evolution of exports of goods between EU Member States (left) and share of intra-EU exports in 2023 (right)</p> " data-medium-file="https://i0.wp.com/epthinktank.eu/wp-content/uploads/2024/10/EU-Trade_Trade-in-goods-GW.png?fit=300%2C115&ssl=1" data-large-file="https://i0.wp.com/epthinktank.eu/wp-content/uploads/2024/10/EU-Trade_Trade-in-goods-GW.png?fit=820%2C314&ssl=1" data-id="67713" src="https://i0.wp.com/epthinktank.eu/wp-content/uploads/2024/10/EU-Trade_Trade-in-goods-GW.png?resize=820%2C314&ssl=1" alt="Evolution of exports of goods between EU Member States (left) and share of intra-EU exports in 2023 (right)" class="wp-image-67713" srcset="https://i0.wp.com/epthinktank.eu/wp-content/uploads/2024/10/EU-Trade_Trade-in-goods-GW.png?resize=1500%2C574&ssl=1 1500w, https://i0.wp.com/epthinktank.eu/wp-content/uploads/2024/10/EU-Trade_Trade-in-goods-GW.png?resize=300%2C115&ssl=1 300w, https://i0.wp.com/epthinktank.eu/wp-content/uploads/2024/10/EU-Trade_Trade-in-goods-GW.png?resize=200%2C77&ssl=1 200w, https://i0.wp.com/epthinktank.eu/wp-content/uploads/2024/10/EU-Trade_Trade-in-goods-GW.png?resize=768%2C294&ssl=1 768w, https://i0.wp.com/epthinktank.eu/wp-content/uploads/2024/10/EU-Trade_Trade-in-goods-GW.png?resize=1536%2C588&ssl=1 1536w, https://i0.wp.com/epthinktank.eu/wp-content/uploads/2024/10/EU-Trade_Trade-in-goods-GW.png?resize=2048%2C784&ssl=1 2048w, https://i0.wp.com/epthinktank.eu/wp-content/uploads/2024/10/EU-Trade_Trade-in-goods-GW.png?resize=261%2C100&ssl=1 261w, https://i0.wp.com/epthinktank.eu/wp-content/uploads/2024/10/EU-Trade_Trade-in-goods-GW.png?resize=500%2C191&ssl=1 500w, https://i0.wp.com/epthinktank.eu/wp-content/uploads/2024/10/EU-Trade_Trade-in-goods-GW.png?resize=690%2C264&ssl=1 690w, https://i0.wp.com/epthinktank.eu/wp-content/uploads/2024/10/EU-Trade_Trade-in-goods-GW.png?resize=1024%2C392&ssl=1 1024w, https://i0.wp.com/epthinktank.eu/wp-content/uploads/2024/10/EU-Trade_Trade-in-goods-GW.png?w=1640&ssl=1 1640w, https://i0.wp.com/epthinktank.eu/wp-content/uploads/2024/10/EU-Trade_Trade-in-goods-GW.png?w=2460&ssl=1 2460w" sizes="(max-width: 820px) 100vw, 820px" /></a><figcaption class="wp-element-caption">Evolution of exports of goods between EU Member States (left) and share of intra-EU exports in 2023 (right)</figcaption></figure> </figure> <div class="ssba-modern-2 ssba ssbp-wrap alignleft ssbp--theme-1"><div style="text-align:left"><span class="ssba-share-text">Share this…</span><br/><ul class="ssbp-list"><li 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