The single market would get a new boost: EU strategy to break down trade barriers

The single market has been in place since 1987, but economic integration between member states is still hampered by a number of national regulations. The International Monetary Fund (IMF) estimates that these restrictions result in an effective tariff effect of 44% for goods and 110% for services. The Commission calculates that a 2.4% increase in internal trade could offset a 20% drop in US exports – a particularly pressing challenge given Donald Trump’s tariff-raising policy.

A key element of the strategy is the unification of labelling rules: currently, the different national regulations mean significant additional costs for businesses. In addition, the introduction of digital product passports is on the agenda, which would make the origin, composition and sustainability characteristics of products more transparent. By breaking down administrative barriers, a program to be launched next year aims to enable a company to start operating within 48 hours of registration.

Although the strategy covers many sectors, the financial sector – which has a particularly low level of integration within the EU – is not included. Its development is envisaged in a separate plan, the Investment and Savings Union.

However, the key to success is cooperation between Member States: according to the Commission’s proposal, each government should have a responsible person who holds accountable the EU market development steps taken at national level. The progress of the plan would be assessed in 2026 and, if necessary, a new package of laws could follow in 2027.

Strengthening the single market is not only an economic issue, but also a geopolitical response – in a world where the bloc increasingly needs its own internal strength.