The Single European Market: The unfinished business

Despite almost four decades of building the Single European Market (SEM), its architecture remains incomplete, especially in the service sector. For an economic analysis of the SEM, it is necessary to go beyond technical regulations related to the four freedoms and individual sectors. Equally important is the functioning of a common currency, open internal borders, external trade policies, competition policy, and others. Historically the SEM expanded from ten founding members in 1985 to 27 EU member states (MS) currently and several associated and partial members. Brexit was a blow to the idea of a common market. In the 2010s and 2020s, attempts to reverse the SEM rules became more frequent, partly due to unex-pected shocks such as the refugee crises, the Covid-19 pandemic, and the energy crisis caused by the Russian aggression against Ukraine. Several policy measures are necessary to complete the SEM project and avoid reversals, including completing and updating sectoral legislation, strengthening enforcement prerogatives of the Euro-pean Commission and the Court of Justice of the EU, maintaining the Union's competencies in ac-companying areas such as direct taxation, and continuation of open external trade policies