Section Menu

Economics and Evidence

Economics and Evidence

Recent Study

Copenhagen Economics completed a report for the former BERR (see related document) which attempts to measure the UK-specific effects of implementing the Services Directive. This represents an update on the 2005 study conducted for the European Commission to measure the impact of the Services Directive across the whole of the EU. The paper simulates what will happen in the UK economy following implementation based around an analysis of four key sectors - regulated professions, business services, distributive trade and construction services. Although there are caveats to these quantified benefits, given the current global economic downturn and the high level of uncertainty, Copenhagen Economics estimated that the implementation of the Services Directive by all Member States will bring the following benefits to the UK:

• Welfare increases of between 0.4% and 0.6% per annum, which equates to an increase of £4.1 billion to £6.1 billion per year.
• Increased output by up to 4.2%.
• Prices for services will fall by between 0.3% and 4.6%.
• Increased cross-border trade of up to 6.1%.
• Increased employment opportunities with potentially up to 81,000 jobs being created in the UK.

Impact Assessment

The final draft Impact Assessment (IA), published in May 2009, has been updated to reflect the public consultation (see related document) on the UK's implementation proposals. This IA presents new and/or updated estimates of the expected costs and benefits (both quantitative and qualitative) from the implementation of the Services Directive. The original partial Regulatory Impact Assessment (RIA) of the Directive's impact (based on the Commission's proposal of 4 April 2006) is also available (see related documents).

Consultation

In November 2007 we launched a consultation document setting out our proposals for implementing the Directive in the UK, in May 2008 we published a summary of the views expressed by respondents together with the Government's revised position.  Copies of both documents can be found here and information about the events we held to launch each document can be found here.

Previous studies

A study by Deutsche Bank, published June 2006 - The EU Services Directive: Nightmare or opportunity? Implications for Transatlantic Business

Former DTI commissioned an economic study, published October 2005: Evaluation of administrative costs and benefits of Points of Single Contact and Mutual Assistance.

Former DTI commissioned a report, published 20 September 2005: "Impact of the proposed EU Directive on Services in the Internal market: case studies of UK businesses".

Former DTI commissioned a report, published 12 October 2005: "Economic Importance of the Country of Origin Principle in the Proposed Services Directive". This study built on work carried out by Copenhagen Economics for the European Commission in 2004. The former DTI are grateful to the Commission for permitting this use of their work.

A 2002 survey by the Commission, the "State of the Internal Market", identified some 91 barriers that service providers have faced in providing services across borders. The report was produced following a consultation with services providers across the EU in 2001.

To view all reports or studies see related documents and external links from the right side of this page.