Europe’s two trillion euro dividend: Mapping the Cost of Non-Europe, 2019-24

Study 18-04-2019

This study brings together work in progress on a long-term project to identify and analyse the 'cost of non-Europe' in a number of policy fields. This concept, first pioneered by the European Parliament in the 1980s, is used here to quantify the potential efficiency gains in today's European economy through pursuing a series of policy initiatives recently advocated by the Parliament – from a wider and deeper digital single market to more systematic coordination of national and European defence policies or increased cooperation to fight corporate tax avoidance. The benefits are measured principally in additional GDP generated or more rational use of public resources. The latest analysis suggests that there are potential gains to the European economy (EU-28) of over 2,200 billion euro that could be achieved, if the policies advocated by the Parliament in a series of specific areas were to be adopted by the Union’s institutions and then fully implemented over the ten-year period from 2019 to 2029. This would be, in effect, a ‘two trillion euro dividend’, representing a boost of some 14 per cent of total EU GDP (itself 15.3 trillion euro in 2017). The study is intended to make a contribution to the on-going discussion about the European Union's policy priorities over the coming five-year institutional cycle, from 2019 to 2024.