This is an excellent article published by international think-tank, Bruegel. It’s a recommended read. Check it out!
Unfortunately, the model is theoretical. The reality is often very different with widespread protectionism, restricted practice and absence of effective competition. Let me cite some examples to illustrate my point:
1. Banking – absence of competition across Europe
2. Public sector, national & local government, police, fire and related services – outsourcing of front & back-office – across Europe
3. EU administration – outsourcing of front & back-office
7. Professional services
Without reform, effective competition and fiscal stimulus, massive unemployment will continue, leading ultimately to a continental crisis on three dimensions: