Building a Stronger Single Market: Potential for Deeper Integration of the Services Sector within the EU

The service sector has been a key driver of growth in the European Union (EU) over the past two decades. However, despite the principle of free movement of services, the single market still faces significant national barriers and remains a patchwork of 27 systems across member states. Administrative hurdles are the most significant obstacles. These barriers significantly hinder cross-border trade in services.
Our quantitative analysis shows that reducing barriers and better harmonizing regulations within the EU would deepen the integration of the EU internal market for trade in services. This would lead to gains in value added across all sectors, strengthening Europe's economy and competitiveness and generating substantial welfare gains.