Upload
benjamin-cobb
View
215
Download
0
Tags:
Embed Size (px)
Citation preview
Meeting the New Challenges for the Single Market Juan Delgado
29 November 2007
Bruegel – www.bruegel.org
A European think tank
– Created in 2004, started operations in 2005
– Based in Brussels
– Supported by Members = EU Governments + International Companies
– Independent, nonpartisan, research-based, policy-oriented (focus on economic policy)
– Outward-looking perspective: a global perspective on European issues, a European perspective on global issues
Bruegel’s aim
– "contribute to the quality of economic policymaking in Europe through open, fact-based and policy-relevant research, analysis and discussion"
16 State Members
Austria
Belgium
Cyprus
Denmark
Finland
France
Germany
Hungary
Ireland
Italy
Luxembourg
Netherlands
Poland
Slovenia
Spain
UK
83 % of EU Population
92 % of EU GDP
+ open to all others!
28 Corporate Members
Challenges of the Internal Market
1. Competition, market entry and EXIT
2. Globalisation
3. Innovation-driven economy
4. Services economy
1. Competition, market entry and EXIT
Enhance competition
Facilitate market entry
And if things go wrong…….
1. Competition, market entry and EXIT
Enhance competition
– Antitrust and merger policies
– Liberalisation policies
Facilitate market entry
– Emphasis in domestic reforms
– Remove economic-based restrictions
And if things go wrong…….
– Simplify exit regulation
– State aid policies not aimed to protect ailing industries
2. Globalisation
Delocalisation of production processes
Globalisation of capital markets
2. Globalisation: Delocalised production processes
The Travels of a T-Shirt in the Global Economy, by Pietra Rivoli
2. Globalisation: Delocalised production processes
Offshoring and outsourcing
– New patterns of trade
– New industry geography
Suffering from globalisation or taking advantage of it?
Globalisation: Do EU firms meet the challenge?
Source: The Happy Few: The internationalisation of European firms. By T. Mayer and G.I.P. Ottaviano. Bruegel Blueprint 3/2007
Exports are concentrated in very few hands
Source: The Happy Few: The internationalisation of European firms. By T. Mayer and G.I.P. Ottaviano. Bruegel Blueprint 3/2007
The situation has not evolved in the last few years
Globalisation: Do EU firms meet the challenge?
Belgian FDI-makers are more productive than Belgian exporters
Source: The Happy Few: The internationalisation of European firms. By T. Mayer and G.I.P. Ottaviano. Bruegel Blueprint 3/2007
Globalisation: Do EU firms meet the challenge?Exporters are more productive than domestic firms and FDI-makers even more productive
3. Innovation-driven economy
1. Productivity growth is driven by innovation
2. Innovation policies
Competition and innovation
Intellectual property and patent policies
4. Services economy
Services directive is a good start but……
how do we implement it?
Services is not a “sector”
One-size suit does not fit all services and all countries
5. Services: Benefits from trade
All services are not equally tradable nor have the same economic importance. Regulation should focus on domestic reforms or reforms “at the border” depending on the nature of the service.
Tradability
HighLow
LowLow
importancesupply
Low economicWater
Media
Value added
Financial servicesnot feasible
Integration
services
servicesHealth
professionalTrade
Business andWhosaleRetail trade
High
Tradability
HighLow
LowLow
importancesupply
Low economicWater
Media
Value added
Financial servicesnot feasible
Integration
services
servicesHealth
professionalTrade
Business andWhosaleRetail trade
High
Source: Bruegel
Concluding remarks
Prioritising: First, screening and then monitoring
– Searching for market imperfections with large direct/indirect impact
Taylor-made solutions (in addition to general rules)
– Barriers to entry/trade are increasingly sector/country specific
Implementing general rules: Implementation toolkits
– What are the tests a regulation should pass to comply with the internal market rules?
Make markets work rather than regulate market outcomes/structures
– Sustainable solutions instead of temporary solutions
“Internal market policies” not isolated from other policies
– What are the tests other policies should pass to comply with the internal market rules?
Thank You For Your Attention
Juan Delgado
+32 2 227 4285, [email protected]
Rue de la Charité 33, B-1210 Brussels
www.bruegel.org