{
  "title": "Lifting Binding Constraints on Growth in Europe: Actionable Priorities to Deepen the Single Market",
  "publication": "IMF Working Papers, June 13, 2025",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2025/06/13/lifting-binding-constraints-on-growth-in-europe-actionable-priorities-to-deepen-the-single-567610",
  "canonical": "https://www.imf.org/en/publications/wp/issues/2025/06/13/lifting-binding-constraints-on-growth-in-europe-actionable-priorities-to-deepen-the-single-567610",
  "overlayPath": "/en/publications/wp/issues/2025/06/13/lifting-binding-constraints-on-growth-in-europe-actionable-priorities-to-deepen-the-single-567610/index.md",
  "summary": "Focusing on a cross-border perspective, this paper identifies four key binding constraints that hinder firms’ ability to innovate and scale up within the EU single market—fragmented regulations, inefficient financial intermediation, limited labor mobility, and fragmented energy market.",
  "sections": [
    {
      "heading": "Key findings",
      "content": "- Identifies four key binding constraints that hinder firms’ ability to innovate and scale up within the EU single market:\n  - fragmented regulations\n  - inefficient financial intermediation\n  - limited labor mobility\n  - fragmented energy market\n- A small set of actionable steps to deepen integration could deliver a meaningful initial payoff:\n  - increasing the EU GDP level relative to baseline by around 3 percent over 10 years\n  - this is sizable given that the EU potential growth is projected to be just above 1 percent annually over this horizon"
    },
    {
      "heading": "Action areas and policy recommendations",
      "content": "- Lowering regulatory fragmentation to ease cross-border activity and scale-up by firms\n- Advancing the capital markets union to improve financial intermediation and cross-border financing\n- Enhancing labor mobility within the EU to alleviate labor market frictions that constrain scaling and innovation\n- Integrating the EU energy market to reduce fragmentation and support cross-border investment and competitiveness"
    },
    {
      "heading": "Analytical perspective and scope",
      "content": "- Focuses on a cross-border perspective to identify constraints to firm investment, innovation, and scaling within the single market\n- Emphasizes actionable priorities for deeper single market integration rather than a comprehensive reform package"
    },
    {
      "heading": "Illustrative scenarios and quantitative emphasis",
      "content": "- Through illustrative scenarios, the paper shows that targeted measures along the four action areas could:\n  - raise the EU GDP level relative to baseline by around 3 percent over 10 years\n- Contextual numeric point:\n  - EU potential growth is projected to be just above 1 percent annually over this horizon\n\nIMF Working Paper No. 2025/113 (June 13, 2025).\n\n---\n\n Content in this bundle\n\n- Working Paper\n  - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2025/06/13/lifting-binding-constraints-on-growth-in-europe-actionable-priorities-to-deepen-the-single-567610"
    }
  ],
  "bullets": [
    "[Markdown version](/en/publications/wp/issues/2025/06/13/lifting-binding-constraints-on-growth-in-europe-actionable-priorities-to-deepen-the-single-567610/index.md)",
    "[Structured JSON version](/en/publications/wp/issues/2025/06/13/lifting-binding-constraints-on-growth-in-europe-actionable-priorities-to-deepen-the-single-567610/index.json)",
    "[Bundle manifest](/en/publications/wp/issues/2025/06/13/lifting-binding-constraints-on-growth-in-europe-actionable-priorities-to-deepen-the-single-567610/bundle-manifest.json)",
    "Authors: Nathaniel G Arnold, Allan Dizioli, Alexandra Fotiou, Jan-Martin Frie, Burcu Hacibedel, Tara Iyer, Huidan Huidan Lin, Malhar S Nabar, Hui Tong, Frederik G Toscani",
    "Published: June 13, 2025",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9798229010986.001",
    "Identifies four key binding constraints that hinder firms’ ability to innovate and scale up within the EU single market:",
    "A small set of actionable steps to deepen integration could deliver a meaningful initial payoff:",
    "Lowering regulatory fragmentation to ease cross-border activity and scale-up by firms",
    "Advancing the capital markets union to improve financial intermediation and cross-border financing",
    "Enhancing labor mobility within the EU to alleviate labor market frictions that constrain scaling and innovation",
    "Integrating the EU energy market to reduce fragmentation and support cross-border investment and competitiveness",
    "Focuses on a cross-border perspective to identify constraints to firm investment, innovation, and scaling within the single market",
    "Emphasizes actionable priorities for deeper single market integration rather than a comprehensive reform package",
    "Through illustrative scenarios, the paper shows that targeted measures along the four action areas could:",
    "Contextual numeric point:",
    "**Working Paper**"
  ],
  "related": [
    {
      "title": "Working Paper",
      "role": "paper",
      "sourceUrl": "https://www.imf.org/-/media/files/publications/wp/2025/english/wpiea2025113-print-pdf.pdf",
      "summary": {
        "path": "/-/media/files/publications/wp/2025/english/wpiea2025113-print-pdf.pdf.md",
        "mime": "text/markdown"
      },
      "binary": {
        "path": "/-/media/files/publications/wp/2025/english/wpiea2025113-print-pdf.pdf",
        "mime": "application/pdf"
      }
    }
  ],
  "alternates": {
    "markdown": "/en/publications/wp/issues/2025/06/13/lifting-binding-constraints-on-growth-in-europe-actionable-priorities-to-deepen-the-single-567610/index.md",
    "json": "/en/publications/wp/issues/2025/06/13/lifting-binding-constraints-on-growth-in-europe-actionable-priorities-to-deepen-the-single-567610/index.json",
    "bundleManifest": "/en/publications/wp/issues/2025/06/13/lifting-binding-constraints-on-growth-in-europe-actionable-priorities-to-deepen-the-single-567610/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-17T01:51:50.349Z"
}