Round table calls for the removal of hidden barriers in the EU's single market

Participants in a round table titled "Let's use the potential of the single market" held in Zagreb on Tuesday agreed that the European Union’s single market must change and move in the direction of improving competitiveness and removing hidden barriers for entrepreneurs and companies.

The round table was organized by the Economy and Sustainable Development Ministry, and in addition to the Prime Minister Andrej Plenković and several of his cabinet ministers, former Italian Prime Minister and the President of the Jacques Delors Institute, Enrico Letta, also attended. Letta was recently tasked by the European Council with preparing a special report on the future of the single market.

According to Prime Minister Plenković, the report will be ready in the next few weeks, and the purpose of today's meeting is for Letta, who is also visiting other EU member states, to hear Croatian views on the functioning of the single market, that is, how official Zagreb views the entire process.

"The Union must bear in mind the long-term competitiveness of the economy, be based on equal conditions of market competition, full use and implementation of the four freedoms, as well as have a coordinated application and implementation of EU rules," the Croatian Prime Minister said.

Plenković further pointed out that Croatia, along with digital and green transition, is paying special attention to the issue of demographic revitalization, considering that demography represents the "essence of survival" of many member states, that is, their peoples.

Plenković also stressed that fragmentation should be eliminated as much as possible, that is, hidden barriers for economic entities should be removed: "The more developed, economically stronger and longer countries are in the Union, the more sophisticated they are in setting up hidden barriers," Plenković said.

The prime minister went on to note that an attractive business climate should be created, with equal opportunities for all subjects, regardless of the size and strength of the country or the moment of entry into the Union: "With better access to financing and investments, we must boost the competitiveness of our economy," he said.

Plenković said that as the youngest member of the EU, Croatia’s economic entities are still striving and strengthening in order to be as equal as possible in the EU's single market while simultaneously dealing with a swath of crises over the past four years: "That's why the view of the single market today, after this common Croatian, European and global experience, is significantly different than it was before the covid-19 pandemic."

He then went on to say that without the social cohesion of society, market competition itself has no meaning, saying that the numerous crises have given birth to a policy of state interventionism and state support for the economy and citizens. As such, he said, the Government will adopt decisions at this Thursday’s cabinet session that will continue its policy of subsidizing electricity and gas, which will keep their prices stable, and added that special support will continue for the most vulnerable members of society, such as pensioners and unemployed veterans. This he said was another important value shared by the EU.

Plenković pointed out that during Croatia's membership, trade with the Union increased by 2.5 times, from 18 to 46 billion euros: "This shows that Croatian companies, under the influence of market competition on the single market, are more competitive and productive than they were before."

He also reminded that when Croatia joined the Union, it was at 61% of EU development, while at the end of 2022 it was 73%. “With economic growth of 2.8% last year, compared to the average growth in the Union of 0.5%, we reached 75% of development compared to the EU average,” the Prime Minister pointed out, reminding that the GDP per inhabitant stands at 75% of the EU average outlined in the National Development Strategy until 2030, which means that the goal was achieved six years earlier.

Plenković and Letta also met individually, discussing the subject of EU enlargement, in the context of today's European Commission recommendation on the opening of accession negotiations with Bosnia and Herzegovina.

Plenković assessed that absorptive capacity, i.e. the issue of enlargement, and the European budget are topics that will determine the dynamics of the EU's future, and accordingly create an atmosphere for completing the process of the single market.

Source: HRT