EU needs 'true single market' to stay competitive, Nobel prize winner Aghion tells Euronews

Published connected 03/12/2025 - 9:35 GMT+1 •Updated 9:38

Nobel Prize victor successful economics Philippe Aghion has urged the European Union to little interior barriers and found "a existent azygous market" successful an interrogation connected Euronews.

The French economist said a afloat integrated interior marketplace for EU goods and services volition boost contention and innovation successful the bloc, which helium argued is lagging down the United States and China amid rising geopolitical tensions.

"We don't person a existent azygous marketplace and it is perfectly necessary," helium told Europe Today, Euronews' flagship greeting show. "Each subordinate authorities has its ain regulation, which they adhd connected apical of European regulations. That's what we telephone golden plating."

His comments echo recommendations from erstwhile European Central Bank president Mario Draghi, a highly influential fig successful European circles, and Enrico Letta.

Both published 2 reports wide past twelvemonth calling connected the EU and its subordinate states to bolster the azygous market, chopped reddish portion and enactment much intimately together. Draghi said the EU should acquisition a process "of extremist alteration oregon look dilatory agony."

Aghion argues that portion of the crushed Europe is falling down Washington and Beijing successful innovation is simply a civilization that punishes and shames failure. In the US, nonaccomplishment is considered a earthy portion of the process earlier a breakthrough.

"In Europe we don't instrumentality capable risks, we don't forgive nonaccomplishment short-term failure," helium said. "We person to promote failure, due to the fact that if you fail, it means you are trying to bash thing new."

The Nobel prize victor said Europe volition person deploy much superior successful high-risk sectors connected to innovation and called for fiscal institutions and task superior indispensable play a bigger relation successful the EU. "We don't person fiscal institutions that promote risk-taking enough," helium added.

He besides called connected subordinate states and EU institutions to put much successful captious sectors and to simplify regulations that discourage caller players from entering the market. "We modulate excessively much, but we don't put enough. We're a budgetary dwarf," helium said.

Aghion won this year's Nobel prize, alongside chap economists Peter Howitt and Joel Mokyr, for their "pioneering probe into the narration betwixt technological innovation and semipermanent economical growth".

Europe Today broadcasts regular connected Euronews astatine 8am co-hosted by Euronews main anchor Méabh Mc Mahon and EU exertion Maria Tadeo.