A competitive,
sustainable and
digital Single Market
In the 30 years since it was created, the Single Market has provided invaluable social, political and economic benefits for Europe. Beyond the free movement of goods, services, capital and people, it has made the private sector more efficient and has given consumers greater access to more affordable and varied goods and services. As the world evolves, the Single Market must continue to adapt. By reducing the regulatory burden, establishing the right framework for innovation and promoting the green and digital transitions, the EU can ensure it remains fit for today’s economy.
- Regulatory burden
- Innovation
- Sustainability
- Digital
Regulatory burden
While regulation can encourage fairness and innovation in Europe, in excess, it can create unnecessary administrative burden and hinder the private sector’s capacity to grow. Companies of all sizes are struggling with the volume and speed of regulation across sectors. So do EU and Member State authorities as they strive to enforce new and existing rules. It creates implementation challenges and a level of uncertainty that puts potential investments in the EU at risk, particularly as more and more funds are directed towards compliance and away from research and development.
Recommendations
• Ensure better harmonisation of legislation across Member States as well as promote legal coherence and certainty.
• Focus resources on enforcing, implementing and reviewing the effectiveness of existing legislation, including at the national level, rather than creating new frameworks.
• Establish more reasonable timeframes for implementation.
• Create new initiatives only if they strengthen Europe’s competitiveness and if they are based on transparent, science- and fact-based consultation processes and impact assessments.
Innovation
For the EU to remain a leader in innovation, it must create frameworks that incentivise investments in research and development, including the scaling of new technologies. Both legislative developments and funding mechanisms have a role to play. The Single Market can serve as a platform to develop these frameworks and enable innovation across all Member States, including through public-private partnerships.
Recommendations
• Develop a robust and predictable intellectual property protection framework.
• Prioritise funding in innovation and ensure it is accessible to all technologies by, for example, drawing on European structural funds.
• Build a comprehensive and open Single Market for financial services, focused on market-led solutions that recognise the global nature of capital markets.
• Favour best-in-class public procurement selection criteria to support the uptake of innovative solutions and technologies with a focus on life-cycle cost and green procurement.
• Protect the civil justice system from a regulatory trend that enables abusive litigation practices.
Sustainability
Transitioning to a greener economy is the challenge of our time. The EU has the ambition to lead this change, and the private sector will continue to do its part. With the harmonisation of environmental and climate policies and with clear targets and timelines, the EU can partner with companies to define and implement critical sustainability practices. Initiatives should strengthen the business case for decarbonisation and address the impact on competitiveness vis-à-vis countries that have lower standards.
Recommendations
• Develop a consistent and coherent chemicals policy that supports a strong manufacturing base.
• Reduce energy demand while transitioning to low-carbon solutions with the support of simplified funding opportunities and incentives for all technologies that meet the EU’s objectives.
• Maintain as long as possible the value of products and resources by harmonising the approach to waste, recycling infrastructure and technology, and by ensuring sustainable access to critical raw materials.
• Enhance collaboration between the public and private sectors to ensure the sustainability, security and affordability of food systems.
• Encourage the conservation of biodiversity as well as increase access to clean and safe water.
Digital
The digital transformation of the Single Market is key to building a more resilient and sustainable economy. Technology enables companies to increase efficiency, optimise operations and compete on a global scale. This requires Europe to invest in the digitalisation of the economy and recognise the role of business in contributing to this growth.
Recommendations
• Continue developing and investing in technologies, such as artificial intelligence (AI), quantum computing and 5G/6G, and ensure that regulatory frameworks remain flexible and responsive to rapid changes.
• Strike the right balance between regulating emerging areas, giving space for innovation, protecting trade secrets and fostering growth and trust.
• Boost Europe’s semiconductor production capacity, ecosystem and supply chain resilience.
• Maintain, strengthen and protect international data flows.
