Sunday, May 12, 2013

12/5/2013: Open Europe on Trade in Services

A very interesting piece of research from Open Europe thinktank, focusing on the potential economic impact from liberalising services trade within the EU:

Here are some highlights:

Chart below shows gains from the full implementation of the rather limited EU Services Directive:

And on to the extension of the EU Directive (notice that Ireland is in the higher benefits group of countries as our exports of services are both growing at the faster rate than EU average and constitute already a higher proportion of total external trade than EU average).

Also, recall that "The Economic Adjustment Programme for Ireland, February 2011 [states]: “Enhanced competition in the services sector modelled in the simulations…translates into a 0.1% increase in employment and a 0.5% increase in GDP over a 10-year period.” “[The Irish] Government will introduce legislative changes to remove restrictions to trade and competition in sheltered sectorsincluding: [the legal profession, medicalservices and the pharmacy

Lastly, comparing the relative significance of trade in services liberalisation to other potential means for boosting economic growth in Europe:

This is the debate that has, unfortunately, stalled in Europe with the onset of the crisis, as did the reforms under the Services Directive.
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