The expansion of the European Union in 2004 marked a pivotal moment for business development across the continent. The integration of ten new countries into the EU's single market has profoundly affected all aspects of business operations, from internationalisation to packaging. Notably, Latvia and the Czech Republic were among those who joined, experiencing transformative economic growth. The single market has proved crucial for companies like Raylyst Solar, which reported an astounding annual compound growth rate of over 800 percent between 2019 and 2022.
The elimination of border taxes and the facilitation of free product movement have significantly lowered operational costs for companies within the EU. This environment allows businesses to expand their operations without the hindrance of physical borders or additional tariffs, fostering a mindset geared towards global expansion.
"Being part of the EU from day one has set the thinking of the founders of this company; it’s going to be a global company." – Gunta Šulte
MADARA Cosmetics, an organic skincare and makeup producer based in Latvia, exemplifies this growth. The firm has successfully expanded its reach across Europe and beyond, entering over 200 new retail outlets in France in the past year alone. The EU's single market has allowed MADARA to not only export products efficiently but also adhere to uniform cosmetic regulations, simplifying trade agreements.
"It is much easier to export, to make trade, to make agreements, because the cosmetic regulation is 'homogene' across the EU," – Lotte Tisenkopfa-Iltnere
Raylyst Solar, a leading photovoltaics wholesaler situated in the Czech Republic, is recognized as Europe's fastest-growing company by the FT 1000 list. Its Marketing Manager Michal Petřek highlighted that Germany has become their largest market, underscoring the benefits of the single market's seamless trade opportunities.
"The single market is very crucial for us. It's free movement of products, it helps us to be faster, no taxes on the borders, it makes everything cheaper and in the end we hire a lot of people from foreign countries, including Germans and Italians." – Michal Petřek
The single market not only drives economic growth but also encourages innovation and product development by removing barriers that traditionally impeded cross-border commerce. This shift enables companies to focus on expanding their product lines and markets rather than logistical challenges.
"You remove this barrier of physical borders or physical obstacles for goods flow. So it removes that barrier of thinking in your head and you already think global from day one," – Gunta Šulte
Since joining the EU, new member states have witnessed a significant reduction in trade costs and improvements in supply chain integration. This has spurred the creation of thousands of new businesses, providing a robust platform for future growth.
In addition to business growth, the EU's single market facilitates employment from a diverse range of countries. Companies can now hire talent from across Europe, enriching their workforce with varied skills and perspectives.
The EU continues its expansion efforts, with Bulgaria and Romania joining in 2007 and Croatia in 2013. Nine countries, including Albania, Serbia, and Ukraine, currently hold candidate status to join the union. This ongoing enlargement signifies a commitment to fostering economic development and cooperation across Europe.
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