Potentialities of the SEM and the EU Trade policies as a factor for growth

A) Single European market (SEM). The theory of real economic integration, de-fragmentation of markets and creation of pro-competitive effects within an integrated economic area, has been widely proven. Empirical analysis has shown how much the SEM has fostered competition. Various “Single Market Reviews” carried out by the European Commission have conclued that the SEM is a powerful instrument to promote economic integration and to increase competition within the EU and that it has been the source of large macro-economic benefits. However, these gains could have been substantially larger if the removal of most of the remaining cross-border barriers was achieved. Moving from these considerations the paper will review 1) the dynamic and main results of the SEM in terms of macro-economic impact; 2) review the main cross-border barriers and finally 3) indicate the measures that will have to be taken by the EU in order to maximize the benefits (growth and job creation) of the SEM.

B) Trade policy. Trade opening has been and remains one of the most relevant features of EU commercial policy. In the past 15 years the reforms of the Common Agricultural Policy have significantly reduced the distortion of world markets induced by EU’s export subsidies. As in the case of the single market, empirical analysis indicated that the Common trade policy has stimulated competition and firm efficiency. Starting from these considerations the second part of the paper will assess the bilateral dimension of EU trade policy. The analysis will focus on the impact of the innovative types of agreements implemented by the Commission (the so called Deep and comprehensive trade agreements) and on the most ambitious trade deal ever launched, the Transatlantic Trade and Investment Partnership, for the creation of a free trade area across the Atlantic.

Finally the paper investigates the interaction between SEM and EU's trade policies, as a consequence of the fact that value chains are both-trans-European and trans-continental.