European Union: DNA and Evolution of the Single Market

The Round Table ‘The European Union: DNA and Evolution of the Single Market’ is part of the programme of the 15th Diplomacy Festival and will be held in the Flag Room of the European Parliament Representation in Rome on 27 November at 4 pm.

Established in January 1993, first among 12 EU countries and then extended to all 27, the single market is one of the EU’s greatest achievements. It was originally conceived as a tool to boost trade, increasing the importance of the EU as a trading partner in the world; fuelling growth and competition; and creating new opportunities for EU businesses, giving them access to an internal market of some 450 million consumers. However, the single market, conceived as a free trade area without tariff or non-tariff barriers between its members, has evolved to become an instrument to ensure progress, opportunities, growth, resilience and geopolitical positioning of the EU. Written into the DNA of the Single Market are the so-called four freedoms: free movement of people, services, goods and capital within the EU. These four pillars have been the cornerstone of European integration and values. The Single Market must now continue to adapt to new challenges through a collective effort to continue to strengthen and deepen it, preserve a level playing field, both internally and globally, and ensure that it underpins EU prosperity through competitiveness and productivity in the long run. In April 2021, the Council and the European Parliament adopted the EU Single Market Programme for the period 2021-2027, which includes among its main objectives: increasing the effectiveness of the single market; supporting the competitiveness of EU businesses, in particular SMEs; facilitating the development of effective European standards; and strengthening the role of consumers and protecting them. Some 30 years after the birth of the single market, the programme has been funded with EUR 4.2 billion, and has addressed three key issues: green and digital transitions; new industrial strategy; and boosting competitiveness, growth and recovery. The European Union is therefore proposing itself as a virtuous model on various issues and sectors through strategies and choices, taken with long-term criteria, dictated by principles of sustainability and the need to implement a series of transitions that should guarantee a better future for European citizens. However, recent elections in Europe first, and in the US more recently, have highlighted changes in the European and international political landscape. New parties and new visions on Europe have emerged with the risk of slowing down some policies set by the previous Commission. The new cycle will have to deal with the possible political fragmentation and redistribution of power within the many possible alliances that are emerging and that could result in a polarisation of decision-making on important reforms. The new US presidency, at the same time, could implement political decisions that could be reflected in the very geopolitical role that the European Union has and could have in the coming years in major industrial sectors. Europe’s power faces three main challenges: dependence on raw materials, technological competition and geopolitical pressure. Against this, the opportunities offered by innovation to boost competitiveness, starting with emerging technologies such as Artificial Intelligence, Internet of Things, Blockchain, Virtual Reality, Robotics, etc., become crucial. For the European Union, it is indeed crucial to promote innovation and to become a technological leader and, to do so, it is necessary to consciously choose strategic areas for our economic-productive fabric, which is strongly characterised by chains of small and medium-sized enterprises (24 million workers in the EU, closely linked to local communities and our territories). In this sense, the role of industry leaders is central to ensuring stability and driving entire sectors towards innovation, exploiting the advantages offered by the single market. The promotion of innovation and the resulting boost to competitiveness must, however, be accompanied by a simplification of the European regulatory framework and the reduction of administrative burdens to avoid regulatory fragmentation and complexity. Finally, the increased competition from global superpowers such as the Trump-led United States and China should not be underestimated. In this sense, the EU should create strategic alliances, promote global standards and, above all, strengthen internal cohesion to boost its competitiveness.

To participate, please send an e-mail to: festivaldelladiplomazia@gmail.com

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