Completing the single market for services

The pandemic and the negotiations following Brexit have been a serious challenge for the integrity of the single market. Growing world tensions and the military aggression against Ukraine by the Russian Federation are further emphasising the benefits of unity between Member States. Faced with this extremely difficult environment, the EU has responded with unprecedented determination, developing a series of new tools and coordination mechanisms, such as common procurement and fiscal support, to rapidly address weaknesses. This is, however, not the time for complacency, as the international environment continues to be increasingly uncertain, complex and rapidly-changing. Common and long-term strategic ambition at EU level is required more than ever. Previous evaluations by DG EPRS concluded that completing the single market for services could be instrumental in that respect. In this briefing, our analysis confirms that barriers in service sectors and distortions induced by state involvement continue to significantly hinder free movement of services within the EU. Further ambitious action would be beneficial, with between €279 billion and €457 billion of additional GDP per annum in the long term. We thus conclude that completing the single market for services is an integral part of the path towards more strategic autonomy, more resilience, more security, and more rapid, broad-based and sustainable development.