Permeability (Goods) and Impermeability (Services) in EU Internal Market: a Liberal Perspective
Permeability (Goods) and Impermeability (Services) in EU Internal Market: a Liberal Perspective

Summary/Abstract: European single market for goods is a reality for almost 20 years. EU internal borders are no more an obstacle to trade. However in case of services the situation is quite different. A real and effective single market has still to be created. The reason relies with the removal of the state of origin principle from the Services Directive. This principle is of basic importance in making permeable the EU internal frontiers to services providers. Affected by global crisis the EU is looking for more growth. Services represent the 75% of aggregate GDP of EU27, around 9 trillion euro in 2011. However less than 0.7 trillions are traded through the EU borders, namely 7.4%. Europe needs a much more integrated service market in order to improve its growth performance.The main drawback of the Service Directive is the alteration of the level playing field. Indeed a contradiction of the single market logic. Masked under the alleged reason of avoiding social dumping, the attempt to maintain rent seeking sector has been successful, but just for a tiny minority of privileged agents at the expenses of the huge majority of European citizens. The sine qua non condition is the implementation of the deleted country of origin principle. But there is no move in this direction.

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