Internal economic barriers within the EU prove more detrimental than goods tariffs for the overall market's health.

In a series of recent statements, economists and political figures have expressed concerns about the European Union's (EU) current course and its potential impact on Europe's global standing. One of the key issues at the heart of this debate is the EU's internal market and the need for reforms to remove barriers and simplify regulations.

German-American economist Rudi Bachmann from the University of Notre Dame has voiced skepticism about the EU's current direction, suggesting that it could undermine Europe's position on the global stage. Bachmann links this skepticism to the controversial trade agreement with former US President Donald Trump.

EU parliamentarian and economic expert Markus Ferber has also criticized the Commission, calling for an integrated internal market in areas like telecommunications, energy supply, or financial services. He believes that such reforms are necessary to boost the EU's competitiveness.

Economist Veronika Grimm supports these sentiments, stating that EU-internal trade barriers cause immense damage. Grimm emphasizes the need to reduce regulations and tackle the "regulatory thicket" that has grown over the years. She suggests that consistent reforms are necessary at the EU and member state levels to remain competitive.

The European Commission has acknowledged these concerns and has introduced a new internal market strategy aimed at addressing the "ten biggest obstacles" limiting the internal market's full potential. Among these obstacles, "excessively complex EU regulations" are identified as a key barrier that complicates market access and compliance for businesses across member states.

By mid-2025, 1,364 new EU regulations will have been added, 934 of which were initiated by the Commission. This rapid accumulation of regulations has raised doubts among some, including Michael Jäger, head of the Taxpayers Association of Europe. Jäger has expressed doubts about the reduction of bureaucracy, stating that the EU has adopted almost four times as many legal acts as the USA from 2019 to 2024.

Grimm warns that different rules deter companies and investors within the EU and from states exporting to the EU. She cautions that failure to implement reforms could lead to an even greater crisis. Grimm suggests that the strategy, which aims to "make our market seamless, easier, and stronger," is a step in the right direction, but more needs to be done to tackle the regulatory thicket and reduce barriers.

Federal Minister of Economics Katherina Reiche (CDU) has also expressed concern about internal barriers in the EU internal market. Reiche stated that the total burden of these barriers is 44 percent, almost three times the threatened Trump tariffs. She calls for the completion of the EU internal market, stating that progress has been made but much more is needed.

In conclusion, experts and political figures across Europe are calling for reforms to the EU's internal market to boost competitiveness, simplify regulations, and remove trade barriers. The European Commission's new strategy, which aims to address the "ten biggest hurdles" in the internal market, is a step in the right direction, but more needs to be done to ensure the EU remains competitive on the global stage.