Europe’s internal market barriers rival tariffs—and Vujčić says cutting them could offset US trade drag
• Divergent rules equal estimated tariff costs of ~67% on goods and 95% on services
• A 2% cut to internal barriers could offset projected US-tariff impact of ~0.7pp on euro-area GDP, 2025–27
• Risk sharing absorbs ~30% of shocks in the euro area vs ~70% in the US; euro-area capital markets absorb just 5–10%
• Calls for completing banking and capital markets unions, including European deposit insurance and harmonised withholding taxes
• Digital euro and wholesale payments project Pontes cited as steps toward European payments resilience