Politics and Analysis
The Single Market at 30 – a time to celebrate and push ahead
7. June 2023
Opinion
In 2023, the Single Market turns 30, an important milestone that provides an opportunity to reflect on the results and advantages, identify gaps in implementation and set out priorities for the future, so that it continues to play a critical role in the European economy.
For three decades, the Single Market has been a key driver of growth and made life easier for the people of Europe, so there is plenty to celebrate.
The benefits to Denmark have been huge, adding DKK 100 billion p.a. to the economy and making the average family DKK 65,000 p.a. better off.
The Single Market has also been a powerful engine for job creation. Hundreds of thousands of jobs are directly or indirectly linked to the export of goods and services to our European neighbours, providing jobs and making Denmark more prosperous.
Freedom of movement – one of the basic pillars of the Single Market – has provided EU citizens with the opportunity to work in any of the 27 Member States, which is not only good for the individuals concerned but helps companies access the skills they need.
Not all a bed of roses
The Single Market may have removed significant barriers to freedom of movement, but there is still plenty of room for improvement.
According to the European Parliament Research Service (EPRS), it would boost the European economy by €713 billion by the end of 2029, corresponding to almost twice Denmark’s annual GDP, if the Member States were to remove remaining barriers to mobility, harmonise regulations, guarantee rights and improve the enforcement of rules within the Single Market.
More could also be done to facilitate the free movement of workers. Mass labour shortages make it more important than ever that people and services are able to move freely within the EU. Highlighting this point, a new report by European Employment Services (EURES) and the European Labour Authority (ELA) identifies labour shortages as a persistent structural problem for the Union.
The report pinpoints more than 300 occupations in which a labour surplus in one EU country corresponds to a shortage in another, and yet only 4% of working-age EU citizens live and work in an EU country other than their own – a figure that has remained stubbornly low for many years.
We can do better.
Fewer barriers to freedom of movement
The EU should aim for greater cross-border mobility, which would be good for individuals and employers. This would entail tackling existing barriers to freedom of movement and improving communication about labour shortages within the Single Market and about the rights of EU citizens, a process in which both EURES and ELA could play important roles.
Closer coordination and consistency in the Member States’ application, enforcement and interpretation of EU regulations are needed, too. At present, differences in implementation damage competitiveness and impede the free movement of EU citizens.
National agencies in the Member States need to work more closely together to promote freedom of movement. Digital solutions could help facilitate this interaction.
The EU must also continue to work towards the mutual recognition of qualifications by all Member States. In addition, it is vital that individual Member States are encouraged to implement reforms aimed at improving employment rates and stimulating the labour supply.
Improvements to the Single Market will provide Danish companies with even better opportunities not only to create jobs and drive prosperity in Denmark but also to compete on the European and global stages.