In April 2024, the European Council urged the Commission to develop a horizontal strategy for the Single Market by June 2025.
The conclusions adopted by the Council (Competitiveness and Growth) in May 2024 regarding the Single Market also called on the Commission to adopt a new horizontal strategy aimed at reducing fragmentation and completing the Single Market. This strategy should include a roadmap with clear deadlines and milestones for urgent and concrete actions.
The 2024 Annual Report on the Single Market and Competitiveness reiterated that further integration of the Single Market is clearly necessary.
The services sector is fundamental to economic competitiveness, particularly for European industry (representing approximately 40% of its added value). However, despite some improvements, about 60% of the types of barriers service providers faced 20 years ago remain present today.
Economically significant services, such as business services, construction, or retail services, are not reaching their full potential.
According to the Commission, access to over 5,700 regulated professions remains limited by Member States, making the formal recognition of professional qualifications necessary.
Furthermore, authorisation and declaration regimes complicate the provision of services and cross-border investments.
The Single Market for goods also faces challenges, including illegal practices, pressure on market surveillance mechanisms, the lack of digital solutions, and the circular economy.
Although the Single Market is a shared responsibility of the EU, its Member States, and stakeholders across all political and economic sectors, its horizontal governance structures still need improvement to support the implementation of Single Market policies, particularly through digitalisation.
The enforcement of existing rules also needs to be strengthened, with a focus on prevention, collaboration, and legal rectification in cases of non-compliance.
The European Commission’s communication, expected in June 2025, will announce a series of initiatives and actions.
The strategy’s goal is to create fresh momentum for a modernised Single Market for goods and services, addressing the needs of businesses, workers, and citizens.
The Single Market Strategy will present an action plan outlining the initiatives the Commission intends to propose in the coming years to fully exploit the potential of the Single Market, boosting Europe’s productivity. This will support the EU’s prosperity and social market economy, as well as fair green and digital transitions, ensuring that no one is left behind.
A more integrated Single Market will enable deeper internal market integration for our businesses, allowing them to grow and compete globally.
The strategy’s focus will be on removing existing regulatory and administrative barriers and preventing the emergence of new ones.
To eliminate these barriers, it may be necessary to propose (revised) EU legislation, simplify rules and procedures, support more uniform and effective rule implementation, and strengthen the enforcement of existing regulations.
The strategy will focus on services, goods, and the horizontal governance of the Single Market.
Regarding Single Market governance, the strategy will aim to facilitate compliance with rules and ensure their proper implementation across all Member States.
The strategy will align with the Commission’s strategy to reduce administrative burdens and simplify legislation. It will complement specific sectoral policy initiatives, such as the Energy Union, the Union for Savings and Investment, the Skills Union, the Action Plan for Affordable Housing, and actions to develop the Single Market for transport and telecommunications services.
Our team is available for further information.
