The European market - an important asset for the EU | DW News

Key Concepts

• EU Common Market: The single market within the European Union, designed to facilitate free movement of goods, services, capital, and people.
• Non-Tariff Barriers to Trade: Regulations, standards, or administrative procedures that hinder trade, even without direct tariffs.
• Market Fragmentation: The state of a market being divided into smaller, less efficient segments due to barriers to trade and integration.
• Economic Growth Impact: The potential positive effect on economic output resulting from removing trade barriers.

Strengthening the EU Internal Market: A Critical Opportunity

The speaker highlights a frequently overlooked, yet crucial, area for EU policy: strengthening the internal market. While discussions often focus on external trade relations, the speaker argues that maximizing the potential of the EU’s existing common market represents a significant, untapped opportunity for economic growth and increased attractiveness to external partners.

The core argument centers on the substantial volume of trade within the EU. Currently, approximately 60% of all EU trade occurs amongst its member states. Despite this high percentage, the speaker emphasizes that “humongous” barriers to trade still exist. These are not traditional tariffs, but rather non-tariff barriers – a broad category encompassing differing regulations, standards, and administrative procedures across member states.

The speaker specifically points to the fact that many EU markets remain “very fragmented.” This fragmentation hinders efficiency and prevents the full realization of economies of scale. Removing these internal barriers, the speaker contends, would have a significant “economic growth impact.” This impact isn’t merely theoretical; it’s presented as a concrete pathway to boosting EU economic performance.

Furthermore, a more integrated and efficient internal market would enhance the EU’s position in global trade negotiations. By demonstrating a strong, unified economic base, the EU would become “more attractive to partners outside the EU.” This suggests that internal market strengthening isn’t just about internal benefits, but also about bolstering the EU’s external leverage and appeal.

The speaker doesn’t detail specific barriers, but the implication is that addressing these issues – streamlining regulations, harmonizing standards, and reducing administrative burdens – is a key priority for EU policy. The statement underscores the importance of focusing on internal improvements alongside external trade strategies.

As the speaker states, “We should not forget our own common market. That’s a huge strength for us.” This statement serves as a central thesis, advocating for a renewed focus on maximizing the benefits of the existing EU framework before prioritizing external initiatives.