single market

After joining the European Union, the Czech economy experienced rapid growth. Exports to EU countries soared from 25 billion euros to 188 billion euros in 2022. The growth rate of foreign direct investment increased fourfold after the Czech Republic joined the EU. GDP per capita rose by an impressive 46%. These figures speak clearly: being part of the European Single Market has become essentially vital for the Czech Republic.

On April 30, 2024 - almost exactly one year later - INESS, in cooperation with the Austrian Economics Center, organized the popular Free Market Road Show - and again on a highly topical subject. This year marks not only the 20th anniversary of Slovakia\'s EU membership but also our 20 years in the European Single Market, which recently celebrated its 30th birthday.

The twentieth anniversary of the entry of Poland and nine other countries into the European Union is a good time to remind ourselves of the benefits associated with this. In the Economic Freedom Foundation\'s report, we focus on what is most important for the Polish and EU economies – the Single Market. More than thirty years since its creation, it can be considered a great achievement and the foundation of European economic development.

Liberalism is based upon the premise that individuals are to be trusted, that they know best what is in their interests, that laws, regulations and rules are superseded by the freedom of an individual, and the legislator intervenes only when absolutely necessary. Why then do we still not return to this notion after more than a year after the COVID restrictions started in earnest?

Poland\'s benefits from access to the Single Market are five times higher than from subsidies from the EU budget. In 2019 we received net transfers of EUR 11 billion from the EU budget. But, thanks to access to the European Single Market, Poland’s GDP was 56 billion euros higher.

Addressing and diminishing barriers to the single market in the EU is a much welcome initiative. The initiatives to decrease bureaucracy, to step up efforts to comply with EU law, to evaluate the effects of new regulations on SMEs in impact assessments, and mutual recognition are important steps in promoting growth, free trade, and consumer rights.

The Western Balkan countries already have plans for bold and deep institutional reforms that will not only liberalize and deliver a boost to their economies, but will also, most importantly, significantly improve the level of freedom enjoyed by the people in the region.

Paradoxically, the EU is being buried by those who praise it the most. They demand equal conditions on the internal market and despite the fact that it might seem a legitimate claim, they are, in fact, attacking one of the two pillars (peace and economy) of the European project.

Some old Member States request the principle of “equal pay for equal work in the same place”, meaning that posted workers would not receive lower pay than the minimum wage of the recipient country. During the discussion accusations of social dumping by new Member States with regard to old Member States surfaced.

A common EU cyberspace market is expected to transform cyberspace into a favourable environment for new businesses and provide even the smallest digital companies with access to 500 million consumers across the EU. It is indeed an excellent intention, but what are the steps to a successful implementation?