Working paper

The long road towards the European single market

This paper argues that identifying and quantifying the channels through which market integration is expected to engender growth is methodological

Publishing date
16 March 2015
  • The single market is often perceived as the panacea for Europe’s economic troubles. It is believed that completing the single market would boost welfare, stimulate growth and increase European competitiveness.
  • However, identifying and quantifying the channels through which market integration is expected to engender growth is methodologically complex. Although the overwhelming prediction from the literature is for single market integration to generate positive and significant aggregate effects, we conclude that the impact so far has fallen short of initial expectations, because:

    (1) Barriers continue to prevail in the EU, preventing the exploitation of the potential benefits of full market integration

    (2) ‘Complementary policies’ to support the single market were not, or were insufficiently, put in place

    (3) The single market project has not sufficiently been framed as a key part of the process of creative destruction that Europe needs to embrace to successfully modernise its economy.
  • That single market integration generates positive and significant aggregate effects does not imply that its effects are positive and significant for every sector. There is therefore an important role for European Union and national distributional policies to ensure that losers are sufficiently compensated by the winners, and to overcome political resistance to completing the single market.

About the authors

  • André Sapir

    André Sapir, a Belgian citizen, is a Senior fellow at Bruegel. He is also University Professor at the Université libre de Bruxelles (ULB) and Research fellow of the London-based Centre for Economic Policy Research.

    Between 1990 and 2004, he worked for the European Commission, first as Economic Advisor to the Director-General for Economic and Financial Affairs, and then as Principal Economic Advisor to President Prodi, also heading his Economic Advisory Group. In 2004, he published 'An Agenda for a Growing Europe', a report to the president of the Commission by a group of independent experts that is known as the Sapir report. After leaving the Commission, he first served as External Member of President Barroso’s Economic Advisory Group and then as Member of the General Board (and Chair of the Advisory Scientific Committee) of the European Systemic Risk Board based at the European Central Bank in Frankfurt.

    André has written extensively on European integration, international trade and globalisation. He holds a PhD in economics from the Johns Hopkins University in Baltimore, where he worked under the supervision of Béla Balassa. He was elected Member of the Academia Europaea and of the Royal Academy of Belgium for Science and the Arts.

  • Mario Mariniello

    Mario Mariniello is a Non-resident fellow at Bruegel since September 2024. He is Visiting Professor at the College of Europe in Natolin, Poland, and formerly taught at the University of Namur, the Université Libre de Bruxelles, and the University of Florence. He is the author of "Digital Economic Policy", Oxford University Press 2022. 

    His main interests are the economics of digital marketscompetition policy and the impact of technology in labour markets.

    Mario was previously a Senior Fellow at Bruegel, where he launched and led the “Future of Work and Inclusive Growth” project. He also previously led Bruegel's digital and competition policy research agenda.

    He was Digital Adviser at the European Political Strategy Centre (EPSC), a European Commission in-house think-tank that operated under the authority of the former Commission President Jean-Claude Juncker, a member of the Chief Economist Team at DG Competition (the Commission’s antitrust department), and worked on the use of AI in workplaces at the Commission’s DG Employment.

    Mario holds a Ph.D. in Industrial Organization from the European University Institute (Florence) and a M.Sc. in Economics from CORIPE (Turin). He is currently pursuing a bachelor degree in Philosophy at KU Leuven.

  • Alessio Terzi

    Alessio Terzi, an Italian citizen, joined Bruegel in October 2013. Prior to this, Alessio was a Research Analyst in the EMU governance division of the European Central Bank. He has also worked for the macroeconomic forecasting unit of DG ECFIN (European Commission), the Scottish Parliament’s Financial Scrutiny Unit, and BMI Research (Fitch group), a country risk and forecasting firm in the City of London, where he was a Europe Analyst.

    He holds a Bachelor's degree in International Economics from Bocconi University and an MPA in European Economic Policy from the London School of Economics, where he specialised in public economics. During his studies, he spent a semester at Dartmouth College (USA). Alessio’s main research interests include structural reforms, competitiveness, EMU governance, and the G20.

    Between 2016-2018, Alessio was a Visiting Fulbright Fellow at the Kennedy School of Government of Harvard University. He completed a PhD in Political Economy at the Hertie School of Governance in Berlin, with a thesis on economic growth, written under the supervision of prof. Henrik Enderlein, Dani Rodrik, and Jean Pisani-Ferry.

    He is fluent in Italian and English, has a good knowledge of French, and an intermediate level of German and Spanish.

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