Anticipated EU Trade Shortfall to Increase by Approximately EUR 1 Billion within the Next Half Decade
The European Union (EU) is facing a call to action to remove internal barriers within its internal market, a move that is aimed at making the EU market "seamless, simpler, and stronger." This call has been echoed by Federal Minister of Economics, Katherina Reiche, and economist Veronika Grimm, who argue that the current complex regulatory landscape within the EU is deterring businesses and hindering the smooth flow of trade.
According to Reiche, these internal barriers result in billions of losses for companies and their employees over the year. The overall burden of these barriers amounts to 44 percent, almost three times the threatened Trump tariffs. Grimm concurs, stating that many different rules within the EU deter companies and especially investors.
The European Commission's new internal market strategy aims to tackle these challenges, but the specific term "The Ten Horrors" is not officially recognized within the EU's internal market strategy. The strategy typically focuses on removing barriers, enhancing competitiveness, consumer protection, digital transformation, sustainability, and regulatory harmonization to facilitate trade among member states.
Reiche and Grimm are not alone in their call for action. They argue that the EU is far from completing its internal market and that the new US tariffs on EU exports, set to come into force on Thursday, with a tariff rate of 15 percent for most EU imports into the USA, underscore the need for a more integrated and competitive EU market.
The EU and the USA have an agreement that foresees a tariff rate of 15 percent for most EU imports into the USA, but the new US tariffs threaten to disrupt trade and economic growth on both sides of the Atlantic. According to Reiche, the need to complete the EU's internal market has never been more urgent.
As the EU navigates these challenges, it remains committed to fostering a competitive, integrated, and sustainable internal market that benefits all member states and their citizens. The removal of internal barriers is seen as a key step in achieving this goal and ensuring the EU remains a global leader in trade and competitiveness.
- The European Commission's employment policy, as part of the internal market strategy, focuses on enhancing competitiveness and removing barriers to facilitate trade among member states.
- Katherina Reiche, the Federal Minister of Economics, has stated that the current complex regulatory landscape within the EU, often referred to as "The Ten Horrors" by some, is hindering businesses and causing billions of losses for companies and their employees.
- The new internal market strategy advocates for regulatory harmonization, consumer protection, and digital transformation, and it emphasizes the need for a more integrated and competitive EU market in light of the impending US tariffs on EU exports.
