EU single market needs improvement despite benefits

Stemming from 25 years ago, Europe's single market has been playing a key role to Europe's thriving in the global economy, while there's still room for improvement, the Centre for European Economic Research (ZEW) said in a statement released recently.

The non-profit and independent institute, based in Mannheim, Germany, underlined that action must be taken to help reduce the economic disparities between European Union (EU) Member States.

It was reminded in the statement that the elimination of existing trade barriers and the completion of the digital single market could increase EU's GDP by up to 415 billion euros per year, according to EU Commission.

Moreover, the ZEW called on removal of cross-border barriers to services, better financial market integration as well as a more harmonised energy market within EU.

Speaking of impact of Brexit, the institute pointed out that though Brexit would weaken the common market, "it is all but assured that Britain will continue to be an important trading partner, participating in the market much like Iceland, Norway and Liechtenstein or Switzerland do."

Constructed on four basic freedoms, namely the free movement of goods, services, labour and capital, the European common market covering over 500 million consumers had added 2.2 percent to GDP growth between 1992 and 2006 and created 2.75 million jobs.