Streamlining and strengthening the EU single market

Reforms needed to bolster the single market, while cutting red tape for business

Simplification should not compromise key policy objectives for climate targets and consumer protection

Effective enforcement of EU rules to avoid fragmentation of the single market and addressing cross-border barriers

Digitalisation and AI as drivers of growth and administrative support, while enhancing consumer protection in the digital age

The draft report addresses the need for implementing and streamlining existing internal market rules to boost competitiveness, economic prosperity, innovation and consumer confidence.

On Tuesday, the Internal Market and Consumer Protection committee adopted a draft report on strengthening the EU’s single market rules, with 42 votes in favour, 3 against and 5 abstentions.

Streamlining rules, better implementation and robust enforcement

While supporting regulatory streamlining and simplification to facilitate business compliance, internal market committee MEPs underline that EU’s core policy objectives – on social and environmental standards, as well as digital rights and consumer protection, must not be compromised. They stress that simplification should reinforce the EU’s long-term goals, including digitalisation, the green transition, and consumer protection, while ensuring technology neutrality. The report also urges the Commission to ensure the consistent implementation of all laws adopted during the 2019-2024 term.

Recommendations by MEPs include:

Correct, coherent and effective implementation and enforcement: The text stresses the need to avoid inconsistent implementation of EU laws and fragmented enforcement, which burden SMEs and start-ups. MEPs call for strengthened cooperation among EU and national regulators, a fuller utilisation of the Commission’s enforcement powers (including swifter infringement procedures), and action against regulatory fragmentation to ensure a level playing field.

Early review clause: Calls for early review clause in legislative initiatives, without increasing administrative burdens. Reviews should specifically assess the impact of legislation on EU competitiveness and evaluate the need for revising acts.

Measurable burden reduction: MEPs urge the Commission to establish and apply clear methodology and a simple baseline for burden reduction efforts. This includes measuring and monitoring progress towards established targets, such as reducing administrative costs by 25% for larger companies and 35% for SMEs by 2029.

High-quality assessments: The Commission is urged by MEPs to prepare high-quality impact assessments as an integral part of EU law making to ensure qualitative laws. This should include a “competitiveness check” for SMEs, start-ups and midcaps, and on high-growth emerging tech.

Simplification and streamlining: New simplification proposals should be put forward by the Commission, if deemed necessary and justified by impact assessments. This ensures new proposals improve regulatory coherence, preserve legal predictability, and do not undermine agreed policy objectives.

Clear deadlines for guidelines: The Commission should develop a mechanism to set clear deadlines for the publication of guidelines and enforcement measures before a regulation takes effect, to avoid regulatory uncertainty and implementation delays. These should be concise and clear, and serve as a tool to facilitate compliance rather than being an additional burden.

Preventing new single market barriers: The Commission is called upon to propose efficient legislative and non-legislative instruments to address persistent single market barriers (e.g. cross-border services) and to explore different methods to tackle territorial supply constraints.

Fitness check on digital policy acquis: In its upcoming fitness check on the legislative acquis in the digital policy area, MEPs are asking the Commission to assess the legislative framework and the interplay between existing EU legal acts, to identify potential overlaps, contradictory provisions, and enforcement conflicts, and address shortcomings.

“One-stop-shop” digital solution: The Commission should streamline and increase the uptake of existing digital and AI tools available to economic operators, especially SMEs, and national authorities, highlighting the need for a single IT tool to reduce time and costs and increase compliance and enforcement.

Innovative regulatory tools: To foster innovation and competitiveness in the EU, MEPs suggest including “regulatory sandboxes” in future regulations affecting innovative sectors as well as establishing “EU innovation hubs” across member states.

Quote

After the vote in IMCO rapporteur Anna-Maja Henriksson (Renew, FI) said: "The single market is Europe's strongest asset. To stand firmly on our own feet in an uncertain world, we must strengthen our competitiveness. By simplifying rules, reducing administrative burdens on businesses, ensuring effective implementation, and removing barriers, we can create space for growth, innovation, and jobs — while remaining steadfast in our shared values and core policy objectives."

Next steps

The draft report will be tabled for a vote by the whole Parliament at the plenary session in September.