Breaking Barriers: How the EU is Rebuilding the Single Market for the Modern Economy

Big news from the European Commission: a brand-new Single Market Strategy is here, and it’s designed to make Europe not just competitive, but irresistible.

In the current world of trade turbulence and shifting economic tides, the EU is doubling down on its greatest asset: a Single Market that works better for businesses, for consumers, and for growth.

Already responsible for adding 3–4% to the EU’s GDP and creating over 3.6 million jobs, the Single Market has more to give. This new strategy is about unlocking that untapped potential by clearing the path for businesses of all sizes.

What’s new? A lot, and it’s all about making things easier.

The plan is to strip away red tape, embrace digital tools, and give companies fewer reasons to look elsewhere. From bold reforms to targeted fixes, the EU is putting practicality at the centre of its economic playbook.

Central to the strategy is the removal of the ten most burdensome barriers to cross-border trade and services, identified directly by businesses. These include complex rules, fragmented standards, inconsistent regulations, and onerous national requirements that obstruct the free movement of goods, services, and professionals across the EU.

To revitalise the services sector, which represents over 70% of the EU’s GDP but lags in cross-border activity, the Commission plans targeted reforms, including new legislation to modernise construction and delivery sectors, streamlined rules for industrial services like installation and maintenance, and support for Member States in eliminating excessive regulation in business services.

Small and mid-sized companies will benefit from a more inclusive definition of small mid-caps (SMCs), a new digital SME ID to simplify verification processes, and an expanded SME Envoy Network to promote business-friendly policies. This effort is underpinned by the latest Annual Report on European SMEs, which forecasts growth in both value added and employment.

The strategy also includes a fourth Simplification Omnibus Package expected to save companies €400 million annually by digitising regulatory procedures, including document submissions and product instructions. This marks a significant step toward making digital-first compliance the standard across EU markets.

Key Upcoming Initiatives to look for:

• Digital Networks Act – Q4 2025
• Public Procurement Review – 2026
• 28th Legal Regime – Q2 2026
• Circular Economy Reforms – Q4 2026
• Standardisation Regulation Review – Q2 2026
• Harmonised Cross-Border Services Rules – Q2 2026
• Digital Rail Booking & Ticketing – Q4 2025
• Paperless Mobility for Passengers & Freight – Q4 2026

With this Strategy, the Commission plans to be one step closer to making Europe the best place to do business.