[23] For firms to integrate effectively into the single market, however, they need to be able to scale, which is why the second priority is to create the conditions for the most productive firms to expand quickly and attract resources.
This depends on well-functioning product and labour markets, a financial system that channels capital to dynamic firms, and policies that prevent resources from becoming trapped in unproductive firms, such as efficient judicial systems and bankruptcy laws. Change of that nature creates opportunities, but it can also be perceived as threatening for individual workers. So adequate social safety nets have to be in place, too.