Position on the 2025 Single Market Strategy
The single market is crucial to Europe’s competitiveness, yet there are signs that it is not achieving its full potential. Key performance indicators highlight a decline in market integration for both goods and services. Persistent barriers to free movement, poor transposition, implementation, and enforcement of rules, as well as ineffective governance, are hindering business growth and limiting opportunities.
Eurochambres calls for an ambitious Single Market Strategy, covering also the digital sphere, that enables businesses of all sizes to thrive, reduces trade barriers, and cuts excessive administrative and regulatory burdens.
Executive summary
The EU should be leading in growth and innovation, but its single market is not living up to businesses’ expectations. Instead of driving competitiveness, fragmentation and stagnation are setting in. The European Commission’s latest Annual Single Market and Competitiveness Report highlights troubling signs: market integration for goods and services is slipping while businesses are struggling against bureaucratic deadlocks and inconsistent rule enforcement. This is more than just a missed opportunity – it’s an economic liability.
Persistent barriers to free movement and inconsistent single market rules hinder business growth, innovation, and economic scale in Europe. Regulatory fragmentation and market inefficiencies weaken resilience, affect competition, deter investors, and limit job creation. Ineffective governance structures further exacerbate disparities, leaving businesses in some member states at a disadvantage.
A well-functioning and deeply integrated single market is fundamental to the EU’s ability to compete globally, particularly at a time when economic pressures from geopolitical tensions, supply chain disruptions, and technological transformations are intensifying. Without decisive action, Europe could see a further slowdown in trade, investment, and innovation, all of which are critical to maintaining its global standing.
Eurochambres urges the Commission to adopt an ambitious Single Market Strategy, with clear roadmaps, timeframes and milestones, is comprehensive in scope, and swift in execution, to boost integration, especially in the digital economy. A well-integrated single market will enable businesses, particularly SMEs, by lowering trade barriers, promoting cross-border collaboration, and mitigating regulatory burdens. Strengthening it is key to growth, economic dynamism, and long-term prosperity.
