Why a Single Market Can Still Have Barriers

Europe’s Single Market removed many formal barriers, yet businesses can still encounter costs and frictions across borders. An economic analysis must distinguish the existence of a legal right from the practical ability to exercise it.

The underlying mechanism

The book explores how fragmented requirements and infrastructure affect the scale of the market. Adam Smith’s insight into specialisation and the extent of the market provides a useful starting mechanism. The modern question is which barriers can be reduced without overlooking legitimate public interests.

Continue in the book

The full argument, evidence and proposed responses are developed in The Wealth of European Nations.