In a context where two former Italian Prime Ministers, Enrico Letta and Mario Draghi, have been tasked with developing initiatives for the European Council to support European growth and competitiveness in the medium-long term, Andrea Montanino, director of Sectoral Strategies and Impact in Cassa Depositi e Prestiti, offers a critical reflection on Il Corriere della Sera Economia on the European single market, 30 years after the start of its process.
Through the analysis of the challenges and opportunities that arise, it emerges how overcoming unresolved issues could be a fundamental catalyst for the continent's economic growth, with a particular focus on the potential of transnational production chains.
The single market 30 years after its genesis: a transatlantic comparison
Thirty years ago, the European Union began the process of economic integration with the aim of creating a single market similar in size to that of the United States. Indeed, Andrea Montanino underlines: “The gross domestic product of the Union of countries – the 12 original ones, excluding the United Kingdom – was almost identical to that of the United States”. Despite the enlargement to 20 new states, today the two markets are still dimensionally similar, which demonstrates that the single market has not yet fully expressed its potential.
In particular, there is a dichotomy between Europe and the USA: while in Europe, in fact, there has been population growth, in the United States there has been an increase in productivity. Montanino underlines that behind this phenomenon: “there was [certamente] the eastern enlargement which in the middle of the first decade of the century suddenly reduced the GDP per capita of the single market, but even if we compared the 11 original members of the single market and the United States, we would discover that in those countries the GDP per capita is grew by just under 40%, far from the American performance”. European productivity, when compared to American productivity, shows a significant gap, despite the indisputable advantages of the single market.
Andrea Montanino underlines the unexplored potential of the single market:
Analyzing the various areas of the single market, Andrea Montanino highlights how, despite progress, there are still important barriers, especially in the services sector. “Europe is still behind on the free circulation of services – Montanino comments –” due to fragmented national regulations that hinder effective economic integration.
The single market is facing a “challenge of parallel dimensions”, with direct consequences on the capacity of companies to innovate and grow. Furthermore, the free movement of capital still appears incomplete, thus limiting the ability to attract essential investments for the energy and environmental transition.
Towards a more integrated single market: overcoming unresolved issues and attracting capital
Resolving the open issues would represent a significant boost for the European economy. Andrea Montanino argues that a more integrated market could encourage the creation of supply chains
more extensive and resilient production systems, essential to face the challenges of globalization and acquire greater strategic autonomy.
European strategic autonomy also passes through the ability to finance the ecological transition. Montanino concludes that “only more integrated service markets and a single capital market will be able to guarantee the business scale and sufficiency of financing necessary” to mobilize the indispensable private investments.
Andrea Montanino's words offer a clear overview of the challenges and opportunities linked to the European single market. Overcoming current limitations and promoting deeper integration between member states would not only stimulate economic growth, but would also represent a step towards greater European autonomy and security.
#Andrea #Montanino #single #market #vision #Europe #TPI
