by Callum Anderson
With a new set of European Commissioners, along with Commission President Jean-Claude Juncker, having taken their posts in Brussels last November, the next five years could prove to be highly decisive Britain’s future within the European Union.
But, besides the ‘British question’, one of the biggest items on the Commission’s agenda will be how to effectively generate and sustain economic growth for its member states, so that they are all in a position to benefit from unimpeded export markets.
The single market has undoubtedly brought greater wealth and prosperity to its member states. Research has shown that the single market has increased EU GDP by at least two or three per cent since 1993, with exports and foreign direct investment receiving a particular boost in this time.
Indeed, lowering or completely removing trade barriers has created cost advantages compared to our international competitors, as well as intensifying competition within the single market itself.
Deutsche Bank has stated that reductions of barriers to intra-EU trade has also made the countries in the EU a more attractive place for investment by foreign firms. There are a whole host of UK-specific examples which illustrate this point.
More recently, the European Commission estimates that the EU’s Services Directive has already led to benefits of €100 billion (0.8 per cent of EU GDP).
