Breaking Barriers: The Push for Cross-Border Services in the EU

The European Court of Auditors criticizes the European Commission for insufficient efforts to dismantle barriers to cross-border services, which make up only 20% of the EU's economy. Removing these obstacles could boost growth by 2.5%. Persistent barriers result from differences in national certification and authorization requirements.

The European Court of Auditors has called out the European Commission for its lackluster efforts in removing internal barriers to cross-border services, a vital component of economic growth across the EU. Currently, services account for 70% of the EU's GDP, yet just one-fifth are transacted across borders due to inconsistencies in national certification protocols.

Hans Lindblad of the ECA highlighted that many obstacles identified in 2002 still persist, indicating that their removal has not been prioritized. These barriers, equating to a 110% tariff on cross-border services according to the International Monetary Fund, hinder businesses and stifle economic growth, which could potentially rise by 2.5% if addressed.

The ECA urges the European Commission to identify and tackle the most economically significant barriers and recommend linking their removal to EU financial benefits. This would compel member states to streamline authorization processes, making the EU market more efficient and competitive globally.