The European single market is one of the major achievements of the EU, yet substantial internal trade barriers —ranging from regulatory fragmentation to administrative hurdles and restrictions on services— still persist. These barriers effectively act as ‘tariffs on itself’, undermining the full economic potential of the single market. With global protectionism rising and the number of stable trading partners diminishing, the EU must turn inward in search of alternative consumer markets.
Unlocking the full economic potential of its internal market, especially in services and the digital economy, could provide the demand and resilience to sustain economic growth. This article argues that these barriers constitute a self-imposed economic handicap. By identifying the most persistent non-tariff barriers and quantifying their impact, it reveals that dismantling them is not just regulatory housekeeping — it is essential for the EU’s economic sovereignty and competitiveness in a changing global landscape.