The elephant in the room...
I agree that we need a single European market for intellectual property. But why is it that they mention CDs specifically and not videos?
Getting IP laws updated to prevent restriction of trade would be childsplay. There'd be a minor scuffle with the national music royalty collection agencies, but it's hard to argue that they have any rights to border restrictions than any other producer or vendor.
But pushing through a directive to force videos to be sellable across Europe would require one some kind of Europe-wide film classification scheme, which is something which will really set the Daily Mail set on the rampage. Or worse, the abolition of film classification entirely. Won't somebody think of the children?!?
There's a level of nudity in Spanish family drama (Spanish classification 7 yo and above) that would cause Disgusted of Tunbridge Wells to have a cardiac arrest if it was sold in the UK as a PG.
That's where the problems lie.