Benefits of further European integration
Report released by the European Parliamentary Research Service (EPRS) assessing the benefits of further integration in the European Union (EU), providing several recommendations for concrete policy actions that could generate over over €2.8 trillion of additional GDP by 2032. EPRS provides Members of the European Parliament with independent, objective, and authoritative analysis of, and research on, policy issues relating to the EU.
Key findings:
- Classic single market and single transport area: EU actions for further integration in this area could generate economic benefits of at least €644 billion by 2032. It could bring benefits mainly from the free movement of goods, services, capital and people, while also resulting from fair and simpler taxation, helping to ensure a level playing field, allowing efficiency gains and economies of scale allow for a better use of resources and more solidarity between Member States.
- Green transformation: EU action for further integration in this area could bring €439.5 billion in economic benefits billion in by 2032 if addressed in a united and ambitious way. I would include benefits from regulatory measures, and more efficient budgetary allocations and redistribution of climate revenues to vulnerable citizens. The latter will help to attenuate negative social impacts derived from the transition towards a lower carbon emissions economy.
- Digital transformation: EU action for further integration in this area could add €384 billion in economic terms to the EU GDP. The estimated benefits would come, among others, from more harmonized rules on e-commerce, cybersecurity, policy measures to support digitalization of SMEs, better protection of personal data, closing the digital gap…
- Economic and monetary union: Actions for further integration in this area could generate economic benefits of at least €321 billion in the EU GDP by 2032. The report provides numerous examples such as better coordination of fiscal policy and sustainability of public finances, completing the banking union (i.e progressing in setting up the European deposit insurance scheme, tackling national barriers to banking integration, ensuring banks diversify their investments in sovereign bonds geographically…) and financial market integration, increasing risk sharing…
- Another policy actions in different areas that could foster EU integration bringing economic and social benefits: From better access to knowledge, education and training throughout the EU (better coordination on research and innovation) to promote the development of positive attitudes towards the EU and a better ranking in the global race to competitiveness towards a joint EU health policy consolidating healthcare expenditure at EU level in the areas of prevention and procurement, or to improve allocation of human capital, due to better employment integration of mobile EU workers…
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According to IE University’s Center for the Governance of Change, deeper and more integrated financial markets would strengthen the euro’s global role. This requires, among other elements, resilient and interoperable payment systems and completing the banking union.
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According to a recent report released by CEPS, European financial regulators should adopt competitiveness as a formal secondary objective, following the precedent established by the UK's Financial Services and Markets Act 2023.
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According to @McKinsey, banks must prepare for a new growth curve. Strategic precision —the ability to combine technology, capital discipline, and deep customer insight— will distinguish the leaders from the laggards.
According to Kristalina Georgeva IMF Managing Director, lifting growth requires three things: one, regulatory housecleaning to unleash private enterprise; two, deeper regional integration; and three, preparedness to harness AI.
According to The European House – Ambrosetti, the European Union has an opportunity to boost competitiveness and growth by simplifying regulatory and supervisory frameworks, particularly in the areas of sustainability and the financial sector.