Written by Joseph Dunne
The analysis in the study builds, in large part, on a series of more detailed pieces of work undertaken for individual European Parliamentary Committees by the European Added Value Unit over the last two and a half years, in the form of European Added Value Assessments (on legislative initiatives proposed by the Parliament) and Cost of Non-Europe Reports in specific policy sectors.
The potential gains mentioned in the study represent the total increase in annual EU GDP after a full phasing-in of proposed reforms over several years. In other words, they represent a permanent shift in EU GDP to a higher level. The study concludes that if the policies analysed and actions recommended were to be pursued effectively, the economic benefit could build up annually to almost €1.6 trillion – or about 12% of EU-28 GDP (2014). It should be noted that when an underlying study offers a range of potential gains, the low-range value is usually selected. The study thus errs on the side of caution in estimating potential gains – there is substantial upside potential to the estimate over the medium to long term, from dynamic effects that cannot easily be quantified.
Since the second edition, a series of new studies provide more insight and precision regarding potential gains, namely:
- Single markets – Cecchini revisited (chapter 2)
- Single European Transport and Tourism areas (chapter 4)
- Banking union and banking regulation to avert a new financial crisis (chapter 7)
- Improved coordination of fiscal policies (chapter 8)
- Common deposit guarantee scheme (chapter 9)
Read the study ‘Mapping the Cost of Non-Europe, 2014-19‘.
A more in-depth view of the arguments can be perused in one of the supporting studies:
- The Cost of Non-Europe in the Single Market (Cecchini revisited)
- Single Market in Transport and Tourism: Cost of Non-Europe Report
- The Cost of Non-Europe of an incomplete Economic and Monetary Union