Unexploited Trade and Welfare Potentials of the European Single Market for Goods

The European Single Market has brought substantial progress to the integration of the markets of members. Numerous studies confirm its positive economic effects since its implementation in 1993. Nevertheless, the full potential of the Single Market for goods has not yet been realised. The elimination of existing weaknesses in the legal implementation, practical application, monitoring and enforcement of Single Market rules could result in Intra-EU trade effects of up to +7.6 percent and associated real income effects of up to +0.5 percent on average. Austria could also achieve a real income increase of up to 0.5 percent. The challenges lie in improved cooperation between the EU member states as well as between the member states and the European Commission, the joint observance of Single Market rules despite short-term profits through non-compliant behaviour.