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The ex-ante studies concluded that a removal of barriers and cost reduction would increase the competitiveness of the European market. However, the immediate jump in performance failed to materialize after the implementation of the Single Market. The Commission perceived the existence of fragmented markets as a serious threat to European competitiveness in the world economy. The excessive market fragmentation within the European Union was held responsible for reducing economies of scale and thus obstructing the structural reforms needed to adjust to global challenges

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