How single market dysfunctionalities contribute to the rising cost of living

Food, housing, energy, healthcare, education...how can Europeans maintain their standard of living these days? The cost of living is, more than ever, the primary concern of our fellow citizens, especially among young people.

The EESC therefore regrets the fact that the persistent dysfunctionalities of the European single market are making the situation worse. The 94.6 million Europeans living at risk of poverty or social exclusion are particularly hard hit.

The IMF estimates that non-tariff barriers within the EU equate to tariffs of around 44% for goods. That is three times more than the trade barriers between the states in the US, to use the now-customary comparison. And the figure is as high as 110% for services!

And yet, new barriers are still continuing to appear in the goods and services markets.

In its opinion, the EESC therefore looks at these shortcomings, and specifically those deriving from private operators, from the Member States and from the European Commission’s inaction. We also assess the flaws in particular markets, which are relevant to the cost of living, and call for immediate action to address them.

We must therefore urgently address territorial supply constraints, national fragmentation by private operators that restricts competition and leads to higher prices for consumers. EUR 14 billion a year: this is the resulting additional cost to consumers according to a JRC study in 2020. With inflation, it is understandable that it is now their number one objective to improve the internal market.

We also propose speeding up proceedings against national rules that infringe EU law. We should explore the possibility of interim injunctions against clear breaches of EU rules. We must not allow barriers to be put in place. The proliferation of trade restrictions at national level directly affects the cost of products. The protectionism of certain Member States has direct consequences. What are we to make of the fact that medicines may expire before they can be redirected to the areas where they are needed?! This is Europe we are talking about!

We have a duty, a responsibility, to strike a balanced approach between preventing the erosion of high standards on sustainability, well-being and the protection of workers, reducing unnecessary administrative burdens and facilitating cross-border trade in order to foster a fair and competitive single market.

The EU’s capital, energy, and telecommunications markets all need to be more integrated! And more coordination is also needed to increase labour mobility, particularly in the field of social security.

On the issue of housing, we are calling on the Housing Commissioner to assess whether the lack of harmonisation when it comes to building regulations and the rules on planning permission, or in relation to other rules on housing at national level, has contributed to higher housing prices.

Emilie Prouzet, EESC Employers' Group Member and Rapporteur of Opinion INT/1078 How single market dysfunctionalities contribute to the rising cost of living.