The EU Commission has unveiled a new Single Market Strategy with the aim of reducing barriers currently holding back intra-EU trade and investments.
The Single Market Strategy focuses on several priorities:
Dismantling barriers: the strategy focuses on removing the 10 most harmful barriers reported by businesses – these are complicated business establishment and operations; complex EU rules; lack of ownership by Member States; limited recognition of professional qualifications; lack of common standards; fragmentated rules on packaging; lack of product compliance; restrictive and diverging national services regulation; burdensome rules for posting of workers in low-risk sectors; unjustified territorial supply constraints causing high prices for consumers.
Their removal is expected to enhance the free circulation of safe products, the cross-border provision of services and simplified business establishment and operation throughout the EU.
Bring new dynamism to Europe’s service sector: the strategy focusses on specific service sectors and proposes to:
- put forward a Construction Services Act and a new EU Delivery Act to modernise rules both in the construction and in the postal and parcels sector;
- facilitate industry-related services such as installations, maintenance and repair services;
- support Member States in freeing regulated business services from unnecessary regulation.
Support SMEs’ development and growth: the Commission introduces a new definition of small mid-cap companies (SMCs), extending some of the benefits afforded to SMEs to these SMCs. The Strategy proposes an ‘SME ID’, an online tool to offer a simple way of verifying SME status. Moreover, the SME Envoy Network will promote measures supporting and facilitating SME activity in cross-border trade. These new initiatives are published together with the latest Annual Report on European SMEs, which highlights expected growth in SME added value and employment.
Simplify existing rules and make digitalisation the norm: in ongoing efforts to cut red tape, the Commission has published a fourth simplification omnibus package for businesses. The measures cut €400 million in annual administrative cost for companies. Among others, companies will be able to submit documents digitally to comply with obligations under certain EU harmonised product legislation and to provide product instructions digitally rather than on paper.
Improve joint ownership of the Single Market: Member States should name a high-level Single Market representative (‘Sherpa’) to oversee the application of EU Single Market rules. Member States are also encouraged to prevent single market barriers by assessing the proportionality of their draft national measures.
A strategy for making the Single Market simple, seamless and strong
