Streamlining rules to strengthen the EU’s single market

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

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

Digitalisation and AI as drivers of growth and administrative support

MEPs adopted a report addressing the need to strengthen the single market in order to boost the EU’s global competitiveness and economic prosperity.

On Thursday, Parliament adopted an own-initiative report on strengthening the EU’s single market rules with 459 votes in favour, 65 against and 90 abstentions. The text stressed that the EU is falling behind in global competitiveness due to regulatory fragmentation, poor implementation, and unnecessary administrative burdens, which hinder investment, innovation, and job creation. It underlines that simplifying and properly enforcing rules is key to boosting the single market, driving economic prosperity, high-quality jobs, skills, environmental standards, and innovation.

Reducing regulatory and administrative burdens

Efforts to simplify and streamline rules must, however, uphold the EU’s core policy objectives, such as high social and environmental standards, digital rights, and consumer protection, rather than compromising them, the text reads. MEPs call on the Commission to put forward simplification proposals only if necessary and justified by impact assessments, ensuring they improve regulatory coherence, preserve legal predictability, and uphold existing policy objectives.

Improving implementation and enforcement of EU rules

The text stresses the need to avoid inconsistent implementation of EU laws and fragmented enforcement and addressing so-called “gold-plating”. 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. The report also urges the Commission to ensure the consistent implementation of all laws adopted during the 2019-2024 term.

Prioritising high-quality impact assessments

New legislation should remain proportionate, avoid unnecessary burdens for businesses, and include early review clauses assessing its impact on EU competitiveness, digital readiness, and adaptability to innovation. MEPs also call on the executive to carry out high-quality impact assessments for all legislative proposals, including delegated and implementing acts, assessing cumulative effects, interoperability, and competitiveness impacts on SMEs, start-ups, midcaps, and emerging technologies.

Embracing digitalisation and AI

The text points to digitalisation and artificial intelligence as key tools that can boost competitiveness, reduce administrative burdens, and streamline and automate administrative procedures.

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During the plenary debate rapporteur Anna-Maja Henriksson (Renew, FI) said: “This report is about strengthening our competitiveness and internal market, how we can ensure that our European companies do better in global competition, in line with the proposals in the Draghi and Letta reports. The message from our companies is clear: the administrative burdens need to be reduced. To do that we need to simplify and improve, while at the same time sticking to our climate goals, strong consumer protection rules and our high social standards in all member states”.