Could dismantling just ten key barriers unlock massive growth potential for your European operations? The European Commission has just launched its comprehensive Single Market Strategy, targeting the most harmful obstacles that prevent businesses from fully capitalising on Europe’s €18 trillion marketplace.
This strategy announcement will be particularly valuable for manufacturing and trading company managers operating across EU member states. If your business faces challenges with cross-border operations, professional qualification recognition, or complex compliance requirements, this roadmap offers hope for significant simplification ahead.
The Commission’s approach directly addresses stakeholder concerns identified through comprehensive consultations, promising tangible improvements to business establishment, operations, and growth opportunities across the 27-member bloc.
The “terrible ten” barriers face elimination
The Commission has identified ten specific barriers that most hinder free movement of goods and services. These include complicated business establishment procedures, complex EU rules, limited professional qualification recognition, fragmented packaging regulations, and restrictive national services regulations.
Burdensome posting of workers rules in low-risk sectors and unjustified territorial supply constraints that drive up consumer prices also make the list. The strategy acknowledges that whilst Member States need greater ownership of Single Market implementation, businesses currently face inconsistent application of EU rules across different countries.
Product compliance challenges and lack of common standards complete this priority list. Removing these barriers will enhance safe product circulation, simplify cross-border service provision, and streamline business establishment throughout the EU.
Services sector receives targeted modernisation
Services represent the largest portion of Europe’s economy, yet cross-border trade remains stagnant. The strategy proposes specific sector interventions including a Construction Services Act and new EU Delivery Act to modernise construction, postal, and parcel sectors.
Industry-related services such as installations, maintenance, and repair will receive facilitation measures. The Commission will support Member States in removing unnecessary regulation from business services whilst complementing ongoing initiatives in energy, telecommunications, transport, and financial services.
SME support expands with new definitions and tools
Small and medium enterprises receive enhanced support through expanded definitions and practical tools. The Commission introduces “small mid-cap companies” (SMCs) as a new category, extending some SME benefits to larger companies that still need scaling support.
An “SME ID” online verification tool will simplify status confirmation processes. The SME Envoy Network will actively promote cross-border trade measures, helping smaller companies navigate Single Market opportunities more effectively.
Digitalisation becomes the compliance norm
The fourth simplification omnibus package cuts €400 million in annual administrative costs for companies. Businesses can now submit compliance documents digitally under certain EU harmonised product legislation. Product instructions can be provided digitally rather than on paper, reducing both costs and environmental impact.
These digitalisation measures form part of the Commission’s commitment to reducing regulatory and administrative burdens while maintaining product safety and quality standards.
Member states must step up ownership
To make the benefits of the Single Market more tangible, Member States should appoint high-level Single Market representatives or “Sherpas” to oversee EU rule application. This accountability measure addresses the current inconsistency in how different countries implement Single Market regulations.
Member States are encouraged to assess the proportionality of draft national measures before implementation, preventing new barriers from emerging whilst existing ones are being dismantled.
Massive economic potential awaits unlocking
The Single Market has already increased EU GDP by 3-4% and created 3.6 million jobs since its creation over 30 years ago. The Commission estimates that further completing the Single Market would double these already significant gains.
With 26 million businesses and 450 million consumers, Europe represents the world’s second-largest market, accounting for 18% of the global economy. In today’s volatile economic climate marked by trade tensions, the EU market serves as the primary driver of European competitiveness.
Immediate steps for business preparation
Start monitoring implementation of the “terrible ten” barrier removal initiatives, particularly those affecting your specific sectors and operations. Engage with relevant industry associations to influence how these changes develop and ensure your voice is heard in the consultation processes.
Prepare for enhanced digitalisation opportunities by reviewing your current compliance documentation and submission processes. Consider how digital-first approaches could streamline your cross-border operations whilst reducing administrative costs.
If you operate as an SME or might qualify as a small mid-cap company, investigate the new benefits and tools becoming available. The SME ID system could simplify verification processes across multiple member states.
The European Commission’s Single Market Strategy represents the most comprehensive approach to barrier removal in recent years. Companies that engage early with these changes will be best positioned to benefit from the simplified, seamless European marketplace that emerges.
Don’t wait for full implementation to begin preparation. The businesses that start adapting now will gain competitive advantages as these ambitious reforms take effect across Europe’s massive single market.
Source: https://ec.europa.eu/commission/presscorner/detail/en/ip_25_1274