Opening Europe

It is an article of British faith that further liberalisation of Europe’s market is a worthwhile goal. But few people realise the boost the UK economy would actually get from the finalisation of the EU’s internal market – especially implementation of the Services Directive, creating an integrated market for energy, modernising public procurement rules and liberalising the digital market.

Implementation of the Services Directive alone would add 1.5 per cent of GDP to the EU as a whole in the next nine years, according to European Commission calculations. As the UK has one of the strongest services sectors, this will have direct benefits here.

Taken together, progress in all these areas will boost growth by some 3 per cent of GDP by 2020 and help the UK economy tremendously. Finding ways to persuade European allies to support further liberalisation should be as important for the government as its work on repatriation.