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According to the Final Report a single market for financial services would increase European Union growth by at least 1.1 per cent over the next decade. The most important impact on GDP growth will result from reduction of the cost of equity finance. Another important factor can be derived from the assumed reduction in the cost of bank finance.
Main results of the study:
The report also states that the growth performance will vary among the Member States. According to the report, the French economy would see a rise of 1.4 per cent and the Spanish of 1.2 per cent. In contrast, Germany's economy would only rise by 0.9 per cent, one of the lowest rates of growth among the EU's 15 Member States.
However, the assumed total GDP growth performance is significantly lower than those figures published in the report by the European Financial Services Round Table in February, estimating a 0.5 per cent increase a year to the EU's GDP.
The recent study was prepared by London Economics and in association with PricewaterhouseCoopers and Oxford Economic Forecasting.
Commission press release
Summary
Full report (.zip file)