Such a system enhances overall economic flexibility by helping to redirect capital and resources to the most productive uses, in a cost-effective way, following a shock. Removing internal barriers to the free movement of goods, services, and labour is another priority.
This is an area that is rightly attracting renewed attention, as differences in regional economic performance and shortages of skilled labour are becoming more pronounced, and as demographic challenges begin to intensify. A number of initiatives to remove internal barriers have been undertaken over the years - but with mixed and generally modest results.