Today, the European Commission presented a Single Market Strategy aimed at creating a simpler, seamless, and strong European home market. This strategy proposes bold measures to reduce existing barriers that hinder intra-EU trade and investments, support SMEs in scaling up, and promote business digitalisation. Member States are urged to contribute to making the EU market the best choice for companies, workers, and consumers.
Amidst economic volatility and trade tensions, the EU market is a key driver of competitiveness. It has boosted EU GDP by at least 3-4% and created 3.6 million jobs since its inception. Completing the Single Market could double these gains.
The Single Market Strategy targets several priorities:
Dismantling barriers: The strategy focuses on removing the 10 most harmful barriers for businesses, the “terrible ten”: complicated business operations, complex EU rules, lack of ownership by Member States, limited recognition of professional qualifications, lack of common standards, fragmented packaging rules, lack of product compliance, restrictive national services regulations, burdensome rules for posting workers in low-risk sectors, and unjustified territorial supply constraints causing high prices for consumers.
These barriers hinder the free movement of goods and services, making it difficult for businesses and citizens to fully benefit from Europes Single Market. Removing them will enhance the free circulation of safe products, cross-border services provision, and simplify business operations throughout the EU.
Injecting new dynamism into Europes service sector: Services are the largest part of Europes economy, yet cross-border trade is stagnating. The strategy targets specific service sectors and proposes to:
- Introduce a Construction Services Act and a new EU Delivery Act to modernize rules in the construction and postal sectors;
- Facilitate industry-related services such as installations, maintenance, and repair services;
- Support Member States in deregulating business services where unnecessary.
These actions will complement ongoing initiatives in energy, telecommunications, transport, and financial services sectors.
Supporting SMEs growth and development: To help SMEs leverage the Single Markets scaling opportunities, the Commission introduces a new definition for small mid-cap companies (SMCs), extending some SME benefits to these SMCs. The strategy proposes an “SME ID”, an online tool for simple SME status verification. Additionally, the SME Envoy Network will promote measures supporting SMEs in cross-border trade. These initiatives are published alongside the latest European SMEs Annual Report, highlighting expected growth in SME added value and employment.
Simplifying existing rules and making digitalisation the norm: As part of the Commissions commitment to reducing regulatory and administrative burdens, it publishes a fourth simplification package for businesses. These measures cut €400 million in annual administrative costs. Companies can digitally submit documents to comply with certain EU harmonised product legislation and provide product instructions digitally instead of on paper.
Enhancing joint ownership of the Single Market: To make the benefits of the Single Market more tangible, increasing joint political ownership with Member States is crucial. Member States should appoint a high-level Single Market representative (“Sherpa”) to oversee EU Single Market rules application. They are also encouraged to prevent Single Market barriers by assessing the proportionality of draft national measures.
Background
Since its creation over 30 years ago, the Single Market has been a powerful catalyst for Europes growth, prosperity, and solidarity. With 26 million businesses and 450 million consumers, Europe is the second-largest global market today, with a GDP of €18 trillion, accounting for 18% of the global economy.
The new Single Market Strategy responds directly to a request from the European Council, which in April 2024 called on the Commission to develop a horizontal single market strategy by June 2025. Ministers in charge of competitiveness reaffirmed the call, asking the Commission to present a detailed roadmap of actions with a clear timeline. These requests echoed similar conclusions of reports by Enrico Letta and Mario Draghi in 2024, as well as the Commissions own 2025 Annual Single Market and Competitiveness Report, which all highlighted that creating a truly integrated Single Market is critical for European competitiveness and resilience.
For More Information
A Strategy for making the Single Market simple, seamless and strong