European Integration & Public Goods

The unfair distribution of responsibility for asylum seekers between EU member states under the “Dublin system” has long been a bone of contention in the Common European Asylum System. In April 2024, the EU Parliament approved the controversial migration and asylum package after lengthy negotiations. The rules for illegal immigrants in particular were significantly tightened. However, a balanced and comprehensive migration concept must address very different objectives: EU member states not only want to prevent irregular migration, but also recruit highly skilled workers. The protection of human rights is paramount. In a single market with freedom of movement, it is necessary to go beyond the 27 national immigration policies. A common European migration policy can make immigration rules simpler, less bureaucratic and more transparent for immigrants and the relevant authorities. In addition, a coordinated approach enables better access to education, language courses and employment opportunities for migrants. This facilitates their integration into the European labor market and their social inclusion.

The idea of a Banking Union emerged in the aftermath of the global financial crisis. Ten years on, two of its three pillars, the Single Supervisory Mechanism and the Single Resolution Mechanism, have proven to be a success with regard to financial integration and stability. In this Policy Brief, experts from the Deutsche Bundesbank explain why, in times of structural change, it is crucial to complete the Banking Union and advance the Capital Markets Union.

In recent years, the EU has significantly shaped framework conditions in areas such as data protection, consumer health and safety, environmental protection, the supply chain, and antitrust law. However, the EU’s overregulation in some areas is seen not as beneficial, but as a detrimental factor limiting innovation, competition and growth. The EU now needs better, evidence-based regulation ensuring that its legislation is drafted in a transparent and inclusive manner and is as simple and targeted as possible to reduce unnecessary bureaucracy burdens and costs.

This Policy Report 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.

Defense spending above the NATO target of 2 percent of gross domestic product would be necessary for Europe to be able to defend itself without the protective umbrella of the United States. This is the conclusion of the new EconPol Policy Brief. European countries would have to significantly increase their efforts to catch up with an adequate defense capability, as defense budgets and military investments have been too low for years. Europe must compensate for higher real military costs than, for example, in Russia or China.