EUERC

Expanding markets and consumer choice

For the EU's economic policies to work, each nation has to play its part in expanding markets and one of the ways that has been done is through cross-border marketing.

The idea of integrating different marketplaces across the EU is one that underlines much of the EU's policy and has meant individual nations and companies think on a European scale.

It has not always been an easy process for some of them but, gradually, there has been a general acceptance that, to succeed, the EU must operate as a single commercial entity while still respecting individuality.

Selling the message to companies and national leaders is only half the challenge, however, because success also requires the consumer to buy into the concept.

To that end, member nations have been involved for many years in trying to define and promote the benefits of a single market and its role in enhancing consumer choice. Competition between nations, they argue, can produce competitive pricing and plenty of choice.

Among the strong supporters of this idea is Charlie McCreevy, European Commissioner for Internal Market and Services, who said: 'Internal Trade within the EU is as important as external trade. Trade is one of the main pillars of our prosperity and the major driver of economic growth. As Commissioner for the Internal Market and Services, I want to ensure that remaining barriers to trade within Europe are dismantled over time, and that fragmentation and administrative burdens are reduced.

'Only then can we get the most from our massive market of 480 million people. Bigger markets deliver more scale economies and more competition. These in turn deliver lower costs, more demand, create more jobs, and incentivise more innovation. These goals are worth striving for.'

He made a similar point when he addressed the European Association of Public Banks in Brussels, in November 2006.

Arguing in favour of an integrated EU-wide mortgage market, he said: 'All serious studies have shown that the integration of EU mortgage markets could bring significant benefits to mortgage lenders and citizens. It has been estimated that the full integration of mortgage markets could raise EU GDP by 0.7%.' He told delegates: 'Our challenge is to regain what I sometimes fear we have lost, namely consumers' faith in our big integration enterprise.'

It is a battle that the EU believes it is starting to win.