The state of integration and competitiveness in the EU

The 2015 Report on Single Market Integration and Competitiveness provides in-depth analysis of the recent economic performance in the EU and its Member States.

The report, issued today, analyses the state of integration and competitiveness and their main drivers in the EU. It underpins the European Commission's Single Market Strategy and provides evidence for the coordination of economic policies in the EU.

The EU has seen clear signs of economic recovery in 2015. But economic recovery alone does not ensure a better allocation of resources that is needed to boost productivity growth and enhance overall competitiveness. Targeted reforms are needed at all levels to restore sustainable economic growth and job creation in the EU.

Despite a relative improvement compared to 2013, investment remains one of the biggest challenges across EU economies. In recent years, the investment gap between the US and the EU has widened, especially in Information and Communication Technologies (ICT). This gap needs to be closed and remaining barriers to investment need to be tackled in order to strengthen innovation and accelerate productivity growth.

The second challenge is to remove unnecessary barriers to competitiveness and Single Market integration to allow faster re-allocation of resources towards more productive firms and industries. This will also help reduce the productivity gap in the EU compared to its main competitors.

The report also shows that structural, behavioural and regulatory barriers still hinder the overall performance of the EU Single Market. Much can be achieved by simply improving the implementation and enforcement of existing rules, especially in services markets. Such barriers not only have a negative impact on start-ups but also impede the development of sectors with great Single Market potential, such as the construction sector.

Finally, the review of the evolution of financial markets presented in the report reveals the importance of sound governance structures and further integration of the EU Single Market. This is key to competitiveness, stability and resilience to shocks of the real economy.

The Single Market Strategy

The 2015 Report on Single Market Integration and Competitiveness