When, about twenty years ago, the Euro was created, one objective was to facilitate intra‐European trade by reducing … transaction costs. Has the Euro delivered? Using sectoral trade data from 1995 to 2014 and applying structural gravity modeling …

the single market alongside the formation of large trade agreements with outsiders. …

-surplus amounts to a striking 307 billion Euro in 2018. It persists in goods, services, and secondary income accounts. It also exists … within the Euro Area, and is strongest between neighboring countries. Around the 2004 Eastern Enlargement, the EU self … tax. The resulting loss in tax income could amount to as much as 64 billion Euro per year. …