Although these effects cannot be exclusively attributed to the Single Market, since many other factors affect the markets' development, the Single Market is seen to be acting as a catalyst. Only a quarter of the companies perceives more competition negatively. As might be expected, the intensity of competition has been more strongly felt by the companies that have experienced lower prices in their markets and have seen their market share drop. SMEs' views are relatively more cautious than those of large companies. This renewed evidence of SMEs' dynamism in seizing the opportunities offered by the removal of obstacles to the EU trade should encourage Member State governments to complete the Single Market agenda.
Positive views are stronger in manufacturing and among large enterprises.
However, around a quarter of the business executives interviewed consider that not much has changed and therefore, that they continue to face obstacles in trading cross-border. Figure 2 lists these obstacles according to the frequency they were cited in the survey. This is particularly the case for SMEs where more than one firm in five claims to have experienced problems in this regard. This is hardly surprising and supports the Commission argument that there is a need to overhaul and reform the present VAT system, as proposed by the Commission in its programme for the introduction of a common VAT system. Although these are perceived obstacles rather than established cases, they have to be considered carefully by Member States as business perceptions affect companies' strategy and behaviour.