New study: National obstacles to the EU Single Market

The functioning of the Single Market is a shared responsibility between the EU and the Member States. Differences in interpretation and application of EU law are inevitable. Despite years of hard work and substantial real progress, we appear to be some distance from having a well-functioning Single Market, free from unjustified or inappropriate obstacles to free movement.

On behalf of the European Parliament, Copenhagen Economics – together with Bruegel, CEPS and VVA Brussels – analyse and describe the current state and recent trends in the functioning of the Single Market, focusing on the free movement of goods, services and the right to establishment, digital Single Market, consumer protection and public procurement.

Although rarely outright discriminatory or protectionist, there are numerous instances of national rules and measures that restrict trade within the EU Single Market, such as:

  • Requirements for national marks and certificates in manufacturing sectors
  • The principle of mutual recognition remains seriously underused – authorities often fail to show an evidence-based rationale in case of refusals
  • Businesses struggle to find relevant and high-quality information about applicable rules
  • A lack of transparency of new national rules for service provision and establishment
  • Authorisations and local content requirements in the retail sector

On 11 January 2021, our Senior economist Erik Dahlberg will present the study for the European Parliament’s IMCO committee on 11 January 2021 (detailed timing TBD).

Learn more about the study

For further information, please contact Senior Economist Erik Dahlberg

Adina Claici speaks at ACE conference

Today, our Director Dr Adina Claici spoke at the Association of Competition Economics (ACE) conference. Adina presented and discussed the recently approved recapitalization aid for Lufthansa.

Alongside other panelists, Adina discussed:

  • The Temporary State aid Framework, introduced in response to the Covid-19 pandemic
  • Challenges related to identifying the appropriate level of aid in the current situation when the counterfactual scenario is not clear
  • Appropriate remedies

Learn more about this topic

For further information, please contact Director Dr Adina Claici

Copenhagen Economics at EU Pharmaceutical Law Forum

At yesterday’s EU Pharmaceutical Law Forum conference, our Managing Partner Christian Jervelund and Managing Economist Julia Sabine Wahl presented insights on the affordability of medicines, price transparency, and market access.

Christian Jervelund participated in a panel discussion, discussing market access and innovative pricing models. There is a severe need for such models to substitute price discount negotiations, especially for curative therapies for rare diseases and how to make that happen case by case.

Julia Sabine Wahl and Christian Jervelund later hosted a round table discussion, focusing on the big showdown around medicine prices and what it means for pharma and payers in Europe. The discussion brought out interesting insights on the need for innovative and outcomes-based ways to build in product value into price negotiations, the need for a better incentive framework for orphan medicinal products, and the importance for a competitive level playing field for marketing pharmaceutical products.

Learn more about the conference

For further information, please contact Managing Economist Julia Sabine Wahl

Game theory can improve public procurement

Every year, the Danish public sector purchases goods and services from the private sector for approximately DKK 370 billion. This corresponds to approximately a third of the total public expenditures. But does Danish society get enough bang for its buck?

In practice, many public procurement professionals would admit that value for money is not always their primary focus – and accordingly, many procurers often don’t think enough about whether the rules of the game (in practice: how bids are scored and compared) are sufficient to generate meaningful competition between suppliers.

The use of game and auction theory, i.e. the understanding of how different rules impact the incentives of suppliers, could improve procurement practices and generate more value for the public sector – and for Danish taxpayers. The potential is great!

Our Senior Economist Neil Gallagher has written an article in covering this topic.

Read the full article (in Danish)

For further information, please contact Senior Economist Neil Gallagher

New study: The case for letting municipalities offer employment search services in the market is weak

In our recent study, we investigate the recent public enquiry of whether it is lawful and warranted for municipalities to offer employment services on the market, which are procured by the Swedish Employment Office.

Although the enquiry concludes that it indeed is lawful, it does a poor job in describing the negative consequences of such a reform. Some of the identified competition problems are not addressed with appropriate measures at all, others are handled with reforms that have previously proven hard to implement in practice.

Learn more about the study

Read more about the study

For further information, please contact Natasha Louise Hillenius