2015年-CEPS欧洲政策研究中心_Securing_EU_Growth_from_Services_28页_1mb

Summary of "Securing EU Growth from Services"

Core Content

This report, authored by Federica Mustilli and Jacques Pelkmans and published by CEPS in October 2012, focuses on the potential for economic growth in the European Union (EU) through the improvement of services markets. It highlights the need for both domestic and EU-level reforms to unlock growth and productivity, emphasizing the interdependence between these two areas and the broader implications for the eurozone.

The authors argue that services have become a crucial component of the EU economy, contributing more than 70% of GDP and generating significant employment growth. However, the EU has historically underdeveloped its services market compared to the US, leading to a productivity gap that has widened since 1995. This report bridges the gap between policy discussions and empirical economic research to demonstrate how better functioning services markets can boost EU growth.

Main Points

1. Why Emphasize EU Growth from Services?

• The EU (and especially the eurozone) is searching for new sources of economic growth.
• Public and private spending are limited, and R&D growth is minimal, making services reform a key focus.
• Services have long been a significant contributor to EU GDP and employment, yet their potential remains underexplored.
• Better functioning services markets are essential for enhancing competitiveness and growth.

2. EU Strategies for Services Reform

2.1 Towards a Single Services Market

• The EU has been slow in developing a coherent services policy due to various factors, including the prioritization of goods markets, resistance from national interests, and the complexity of services regulation.
• The horizontal Services Directive 2006/123 marked a turning point in the EU's approach to services liberalization.
• The single market for services is now a central part of the EU strategy, although its full potential is yet to be realized.
• The single market is dominated by services under the horizontal directive (over 45% of GDP), but FDI in services is more concentrated in financial services and network industries.

2.2 Reforms of Domestic Services Markets

• Domestic services markets are crucial for EU growth but traditionally fall under national regulation.
• The EU can play a role in promoting domestic reforms if they are justified as "shared powers" under the Treaty on the Functioning of the European Union (TFEU).
• Services are part of the internal market and should be subject to EU-level competition and regulatory measures.
• Domestic reforms, such as those in Germany under the Services Directive, illustrate the need to remove barriers to access and enhance competition.

Key Economic Insights

3.1 Comparative Productivity Growth Analysis

• Services productivity in the EU has been lower than in the US, particularly since 1995.
• The EU's average annual productivity growth in services was 1% (1995-2005), compared to 3% in the US.
• The productivity gap is mainly attributed to differences in the performance of services sectors, particularly in distribution, wholesale, retail, and business services.
• The US has benefited more from ICT-driven productivity growth, while the EU has been hindered by strict labor and services regulations.
• ICT investment and its impact on productivity are significantly lower in the EU due to regulatory constraints.

3.2 How Services Reform Can Support Industrial Competitiveness

• Services and manufacturing are closely linked, especially in the context of global value chains.
• Improved services markets can enhance the competitiveness of European industry by reducing costs, increasing efficiency, and supporting innovation.
• The role of services in enabling manufacturing competitiveness is increasingly recognized, especially in the context of the EU's single market and the eurozone's monetary union.

3.3 On Domestic Services Reforms

• Domestic services reforms are essential for unlocking growth and productivity.
• These reforms often predate the formal EU strategy and are driven by national and EU-level policy coordination.
• Structural reforms, including labor market and services regulation, can significantly increase the EU's potential growth rate.
• The report suggests that reforms should be aimed at reducing barriers to entry and exit, and promoting competition.

3.4 How the Single Services Market Can Contribute to EU Growth

• The single services market is a key driver of EU growth, but its full potential is yet to be realized.
• Cross-border services trade is significant, but FDI in services is more concentrated in specific sectors.
• The growth potential in network industries (e.g., transport, energy, telecoms) is not only about liberalization but also about infrastructure investment and regulatory harmonization.
• The impact of services regulation on manufacturing and other sectors is substantial, with non-manufacturing regulation affecting manufacturing productivity and competitiveness.

Conclusion

• The report concludes that the EU can achieve a "double dividend" from services reforms: growth from both domestic and EU-level improvements.
• For the eurozone, this could be a "triple dividend" due to the additional benefits of a well-functioning monetary union.
• The authors call for more research and empirical analysis to better estimate the potential economic gains from services reform.
• They emphasize the need for coordinated EU and national efforts to remove barriers, promote competition, and invest in infrastructure, especially in network industries.

Key Figures and Tables

• Figure 1: Sectoral value-added contribution in the EU (% annual growth) – shows services' significant contribution to EU growth.
• Figure 2: Sectoral employment growth (% annual growth) – highlights the job-creating potential of services.
• Figure 3: Intra-EU27 trade in services, exports in 2008 – illustrates the dominance of services under the horizontal directive.
• Figure 4: Intra-EU27 FDI in services, abroad in 2008 – shows the concentration of FDI in financial services and network industries.
• Figure 5: Domestic reforms due to the Services Directive in Germany – demonstrates the impact of EU regulations on national services markets.
• Table 1: Sectoral labour productivity growth in market services, 1980-2005 – compares EU and US productivity growth across different service sectors.

Summary of Economic Potential

• The EU has significant untapped growth potential from services markets.
• Reforms at both domestic and EU levels are necessary to realize this potential.
• The interplay between domestic regulation and EU-level policies is crucial for a "double dividend."
• The role of ICT in driving productivity growth is a key factor, but its potential is limited by regulatory constraints in the EU.
• The single services market and domestic reforms are not mutually exclusive but are deeply intertwined.