1.79 The European Union (EU) has an important role to play in the UK recovery. Around half of the UK's trade, worth around £450 billion in 2010, is with the other EU countries, helping around 300,000 businesses and, directly and indirectly, accounting for 3.5 million jobs. Increased levels of competition have also benefited businesses and consumers alike - increased levels of innovation have led to higher productivity, lower costs and prices and a greater choice for consumers with a wider diversity of higher quality products now available. As a result, the Department for Business, Innovation and Skills (BIS) estimate that the EU's single market could have boosted household incomes by up to six per cent or £3,300 a family a year.
1.80 While successive liberalisations have delivered an effective EU market in goods, significant barriers to cross border trade in services still exist. Services account for over 70 per cent of GDP, but only 20 per cent of intra-EU trade. The European Commission believes that further progress on services could bring gains of 0.5 to 1 per cent of EU GDP, financial markets 1.1 per cent of GDP and energy 0.6 to 0.8 per cent of GDP.
1.81 The UK has therefore been at the forefront of calling for further action, encouraging the European Commission to focus on measures to boost the single market, support trade with third countries, reduce regulation and boost innovation to deliver growth and jobs.