Much of economic policymaking in Europe is driven by the political objectives of the EU, not by economic rationality or efficiency considerations. Here is an interesting potential example of the same trend toward over-politicisation of decision making happening in another sphere - border controls and immigration:
Most certainly worth a read and a robust discussion.
A note to flag some absurdity of the EU policies. Take a look at this map:
Note that Balkan countries, not members of the EU, all (with exception of Kosovo) have a visa-free travel arrangement with the Schengen area. This means that a resident (both citizen and non-citizen) of these countries has visa-free access to the entire Schengen despite paying not a single cent in taxes in the EU, having no residency in the EU, having no family member with an EU citizenship, maintaining no home in the EU nor any business within the EU.
In contrast, an EU taxpayer with full residency in the UK or Ireland but who is not the national of the EU state cannot freely travel to Schengen countries. Full stop. Only one restrictive exception to this is the case where such travel is undertaken by non-EU citizen accompanying their EU-citizen spouse.
Get the madness? Those non-EU citizens who live, work, maintain homes, have families (including with EU citizens in them), run businesses in EU member states (Ireland & UK) have less rights than non-EU citizens of the countries that are not a part of the EU.
Worse than that. Absurdity goes much deeper. A non-EU citizen who is a long-term resident of Ireland and the UK, with home ownership (1), employment (2), business (3) in these states, cannot gain a long-term multi-entry visa to Schengen countries simply because the issuing authorities (embassies of Schengen countries in the UK and Ireland) cannot coordinate the frequency of travel etc between themselves. Yet, a non-EU citizen with a vacation home in, say Spain or Montenegro, has full unrestricted access to the Schengen.