What changed

CONTENTS

P10_TA(2026)0294

on the proposal for a regulation of the European Parliament and of the Council establishingEstablishing the Single Market and Customs Programme for the period 2028-2034 and repealing Regulations (EU) 2021/444, (EU) 2021/690, (EU) 2021/785, (EU) 2021/847 and (EU) 2021/1077

(COM(2025)0590 – C100198/2025 – 2025/0590(COD))

Committee on the Internal Market and Consumer Protection

PE785.258

Amendments adopted by the European Parliament on 16 September 2026 on the proposal for a regulation of the European Parliament and of the Council establishing the Single Market and Customs Programme for the period 2028-2034 and repealing Regulations (EU) 2021/444, (EU) 2021/690, (EU) 2021/785, (EU) 2021/847 and (EU) 2021/1077 (COM(2025)0590 – C10-0198/2025 – 2025/0590(COD))

(Ordinary legislative procedure: first reading)

✦ Adds recitals on the financial envelope, transparency of commitments and payments, flexibility, and protection of the Union's financial interests, and drops the earlier recitals covering the same ground.

The European Parliament,

Recital 1: (1) This Regulation lays down an indicative financial envelope for the ‘Single Market and Customs Programme for the period 2028-2034’ (the ‘programme’). That envelope should be implemented through a transparent and traceable programming structure, including a clear, publicly accessible breakdown of commitments and payments by programme component, by objective and by type of action. For the purpose of this Regulation, current prices are calculated by applying a fixed 2% deflator.

– having regard to the Commission proposal to Parliament and the Council (COM (2025)0590),

Recital 2: (2) In a rapidly changing economic, social and geopolitical environment, recent experience has shown the need for a more flexible multiannual financial framework and Union spending programmes. To that effect, and in line with the objectives of this regulation, the consolidation of the predecessor programmes into a single programme should primarily serve to simplify the administrative structure of the multiannual financial framework and to reduce the administrative burden on implementing bodies and beneficiaries. The funding should consider the evolving policy needs and Union’s priorities as identified in relevant documents published by the Commission, in Council conclusions and European Parliament resolutions while ensuring sufficient predictability for the budget implementation, without resulting in competition for funding between the distinct policy areas supported by this programme and ensuring that reallocation of resources does not weaken core enforcement capacities, in particular customs control and market surveillance.

– having regard to Article 294(2), Article 33, Article 114(1), Article 169(3), Article 197(2), Article 207(2), Article 325(4) and Article 338(1) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C100198/2025),

Recital 4: (4) In accordance with Regulation (EU, Euratom) 2024/2509, Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council4 , Council Regulations (EC, Euratom) No 2988/955 , (EC, Euratom) No 2185/966 and (EU) 2017/19397 , the financial interests of the Union are to be protected through proportionate measures, including the prevention, detection, correction and investigation of irregularities, fraud, corruption as well as any types of conflict of interest and maladministration, the recovery of funds lost, wrongly paid or incorrectly used and, where appropriate, the imposition of administrative sanctions. In accordance with Regulations (EU, Euratom) No 883/2013 and (EC, Euratom) No 2185/96, the European Anti-Fraud Office (OLAF) is empowered to carry out investigations, including on-the-spot checks and inspections, with a view to establishing whether there has been fraud, corruption or any other illegal activity affecting the financial interests of the Union. In accordance with Regulation (EU) 2017/1939, the European Public Prosecutor's Office (EPPO) is empowered to investigate and prosecute fraud, corruption and other illegal activities affecting the financial interests of the Union as provided for in Directive (EU) 2017/1371 of the European Parliament and of the Council8. In accordance with Regulation (EU, Euratom) 2024/2509, any person or entity receiving Union funds is to fully cooperate in the protection of the Union’s financial interests, to grant the ne…

– having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

– having regard to the budgetary assessment of the Committee on Budgets,

– having regard to the reasoned opinions submitted, within the framework of Protocol No 2 on the application of the principles of subsidiarity and proportionality, by the Czech Senate and the Spanish Parliament, asserting that the draft legislative act does not comply with the principle of subsidiarity,

– having regard to the opinion of the Court of Auditors of 20 February 2026,

– having regard to the opinion of the European Economic and Social Committee of 21 January 2026,

– having regard to the opinion of the Committee of the Regions of 4 March 2026,

– having regard to Rules 60 and 58 of its Rules of Procedure,

– having regard to the report of the Committee on the Internal Market and Consumer Protection (A10-0216/2026),

1. Adopts its position at first reading hereinafter set out;

2. Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;

3. Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Recital 1: (1) This Regulation lays down an indicative financial envelope for the ‘Single Market, and Customs Programme for the period 2028-2034’ (the ‘programme’). That envelope should be implemented through a transparent and traceable programming structure, including a clear, publicly accessible breakdown of commitments and payments by programme component, by objective and by type of action. For the purpose of this Regulation, current prices are calculated by applying a fixed 2% deflator.

Recital 2: (2) In a rapidly changing economic, social and geopolitical environment, recent experience has shown the need for a more flexible multiannual financial framework and Union spending programmes. To that effect, and in line with the objectives of this regulation, the consolidation of the predecessor programmes into a single programme should primarily serve to simplify the administrative structure of the multiannual financial framework and to reduce the administrative burden on implementing bodies and beneficiaries. The funding should consider the evolving policy needs and Union’s priorities as identified in relevant documents published by the Commission, in Council conclusions and Parliament resolutions while ensuring sufficient predictability for the budget implementation, without resulting in competition for funding between the distinct policy areas supported by this programme and ensuring that reallocation of resources does not weaken core enforcement capacities, in particular customs control and market surveillance.

Recital 4: (4) In accordance with Regulation (EU, Euratom) 2024/2509, Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council4 , Council Regulations (EC, Euratom) No 2988/955 , (EC, Euratom) No 2185/966 and (EU) 2017/19397 , the financial interests of the Union are to be protected through proportionate measures, including the prevention, detection, correction and investigation of irregularities, fraud, corruption as well as any types of conflict of interest and maladministration, the recovery of funds lost, wrongly paid or incorrectly used and, where appropriate, the imposition of administrative sanctions. In accordance with Regulations (EU, Euratom) No 883/2013 and (EC, Euratom) No 2185/96, the European Anti-Fraud Office (OLAF) is empowered to carry out investigations, including on-the-spot checks and inspections, with a view to establishing whether there has been fraud, corruption or any other illegal activity affecting the financial interests of the Union. In accordance with Regulation (EU) 2017/1939, the European Public Prosecutor's Office (EPPO) is empowered to investigate and prosecute fraud, corruption and other illegal activities affecting the financial interests of the Union as provided for in Directive (EU) 2017/1371 of the European Parliament and of the Council8 . In accordance with Regulation (EU, Euratom) 2024/2509, any person or entity receiving Union funds is to fully cooperate in the protection of the Union’s financial interests, to grant the n…

Recital 5: (5) The programme is to be implemented in accordance with the provisions, rules and objectives defined in Regulation (EU, Euratom) 2025/XXXX of the European Parliament and of the Council9 (the ‘Performance Regulation’).

Recital 7: (7) The Single Market is governed by the fundamental principles of free movement of goods, services, people, and capital and has been a major contributor to growth, competitiveness and employment. A well-functioning and safe-guarded Single Market is a pre-requisite for a competitive, safe, resilient, sustainable and secure Union economy as well as for advancing the Savings and Investments Union. As stressed by the new approach proposed by the Single Market Strategy, more action is needed to address the unjustified barriers, stimulate reforms, reduce fragmentation and complete the Single Market, especially in the context of new global challenges. Deepening of the EU Single Market should contribute to upward convergence, social cohesion and ensuring a high level of environmental, consumer, safety, social and labour standards and rights. This has been and will continue to be reinforced by an effective cohesion policy as an additional key condition for the success of the Single Market. The Member States, local and regional authorities, where relevant, and the Commission share the responsibility for enforcing Union law to ensure compliance with Single Market rules and to protect people’s, businesses’ and workers’ rights. The Union-level responsibility combines three main aspects: removal of barriers, collaboration between Member States, across all levels, and corrective implementation and enforcement actions and stimulating reforms. Barriers such as access to information and knowl…

✦ Formal Corrects punctuation and spacing in the recital on predecessor programmes.

Recital 8: (8) Under the multiannual financial framework for the years 2021 to 2027 laid down in Council Regulation (EU, Euratom) 2020/209311 , the Single Market Programme (‘SMP’) established by Regulation (EU) 2021/690 of the European Parliament and of the Council12 supports the design, implementation and enforcement of Union legislation underpinning the proper functioning of the Single Market, so that it can reach its full potential. The Customs programme established by Regulation (EU) 2021/444 of the European Parliament and of the Council13 and the Fiscalis programme established by Regulation (EU) 2021/847 of the European Parliament and of the Council14 accompany the customs and tax policies in the Union by supporting Union level digital solutions for customs and taxation, which are essential for the effective implementation of Union law, project based collaborative activities as well as human competency building activities. In addition, the Customs Control Equipment Instrument established as part of the Integrated Border Management Fund by Regulation (EU) 2021/1077 of the European Parliament and of the Council15 ,Council15, contributes to increasing the efficient and effective customs controls, essential for the facilitation of legitimate trade, while ensuring sufficient level of protection at the external borders. The Union Anti-Fraud Programme (‘UAFP’) established by Regulation (EU) 2021/785 of the European Parliament and of the Council16 funds actions which aim to prevent and combat fraud,…fraud, …

Recital 9: (9) With economic and security uncertainty caused by multitude of geopolitical challenges, including external shocks, strategic dependencies, climate change, security risks and trade tensions, the Single Market is our anchor for stability and resilience. At the same time, as global competition is intensifying and technological development accelerating at rapid speed, the internal market is facing critical challenges on several fronts, including in digital markets, the rapid development of e-commerce with the rise of uncompliant and illegal imported goods, trade distortions, a rise in fraud and illegal activities. Those challenges require a collective and coordinated Union response considering their scale and the high levels of interdependence among Member States and regions. In addition, a high level of protection and resulting benefits for citizens, consumers, investors and businesses could not be achieved solely through actions at national level, nor could it generate economies of scale, especially given the cross-border nature of those benefits.

Recital 10: (10) Union funding is required to enable the Commission to meet legal obligations of the Union that cannot be delegated to Member States, ensuring obligations under Union law are fulfilled, in particular in the areas of customs, market surveillance, product safety and compliance, including the products sold online, consumer protection, financial services, standard setting, competition policy, the provision of European statistics, taxation and anti-fraud as well as the digital economy.

✦ Formal Replaces the spelled-out 'European Court of Auditor's' with the abbreviation 'ECA's' and the spelled-out 'small and medium-sized enterprises' with 'SMEs'.

Recital 11: (11) It is therefore appropriate to establish a programme to deepen and enhance the functioning of the Single Market and a strong Customs Union and to protect the financial and economic interests of the Union and the Member States, and strengthen the Union’s strategic autonomy, with a design fostering European added value and flexibility, streamlining and creating synergies, while ensuring a high level of predictability, transparency and accountability, as well as adequate funding safeguards for core policy objectives, legal obligations and mandatory systems, and supporting the horizontal policy mainstreaming priorities including what is set out in the Performance Regulation. In addition, in light of the European Court of Auditor’sECA’s findings showing that EU budget flexibility instruments were often activated without adequate analysis or documentation, that their use reduced the visibility of reallocations and that limitations in their designed contributed to early depletion in the Multiannual Financial Framework (MFF) 2021-2027, it is critical that the programme flexibility is utilised responsibly, with sound and long-term financial management, transparency and clear prioritisation criteria at the core. The following four programmes should therefore be merged in one single programme: parts of the Single Market Programme, excluding the small and medium-sized enterprisesSMEs and food and feed strands, the Customs programme, including the Customs Control Equipment Instrument type int…interventions, the Fiscalis programme and the Union Ant…

Recital 12: (12) In this regard, the programme should enable the implementation of the following generic types of actions: (a) digital capacity building and analysis tools, development and operation of centralised and decentralised European electronic systems and digital solutions, implementation tools and data; (b) support to policy, regulatory and enforcement work, for example, through studies, communication, capacity building, impact assessment, evaluation and simplification proposals; (c) collaboration and cooperation between Member States, the Commission, Union agencies, bodies and national, regional and local authorities and with stakeholders, including social partners, the civil society organisations and academia; (d) administrative and operational/technical capacity building, including purchase, maintenance, upgrade of equipment – notably customs control equipment – infrastructure and related costs; (e) human capacity and competency building; (f) joint tools, methods, data and statistics to support policy making and anti-fraud investigations; (g) other actions to achieve the general and specific objectives, such as innovation, testing. Those solutions should be interoperable with national systems.

Recital 14: (14) The programme should therefore further improve the functioning of the Single Market, including the external dimension, protect and empower citizens, consumers and businesses. That should be achieved by developing, implementing and enforcing Union law, offering digital tools and solutions, facilitating market access and public procurement, ensuring resilience, management of emergencies and security threats or crisis, standard setting, and supporting the development of the Union regulatory framework. The programme’s actions should cover the areas of intellectual property rights, company law, anti-money laundering, the protection of Union financial interests, and contract law, and ensure a high level of consumer protection, including online, and protection of passenger rights, and market surveillance, financial and digital literacy, the free movement of capital and financial services, effective and efficient competition enforcement, customs, anti-fraud, effective and efficient enforcement of Union restrictive measures and taxation. The programme should also enhance cooperation between the competent authorities of Member States, the Commission, and relevant Union agencies and bodies, such as OLAF and EPPO, in particular cooperation and increased synergies between various national, regional and local authorities, including national enforcement bodies, as well as cooperation between all levels of government of Member States, the Commission and third countries, including by pro…

✦ Formal Replaces a bracketed footnote marker with a footnote number in the citation of Regulation (EC) No 223/2009.

Recital 15: (15) Reliable and comparable European statistics are essential, as they underpin the design, monitoring and evaluation of all Union policies and empower all members of society to make informed decisions and to actively participate in the democratic process. Relevant, high-quality, accurate, and comparable official European statistics should be produced and disseminated, in a timely manner, to provide valuable insights and address knowledge gaps, allowing citizens, consumers, investors and businesses to benefit fully from the Single Market. Funding should support the production of high-quality European statistics, modernising statistical systems, promoting statistical innovation and integrating digital tools to improve accuracy and speed. In view of its horizontal character, the legal framework for the development, production and dissemination of European statistics established by Regulation (EC) No 223/2009 of the European Parliament and of the Council[1]Council18 is subject to specific requirements, and in particular those laid down in that Regulation, with regard to respect for statistical principles, as well as the functioning of the European Statistical System and its governance, including the role and tasks assigned to the European Statistical System Committee and to the Commission (Eurostat), and the establishment and implementation of the programming of the statistical activities.

Recital 16: (16) The programme should ensure that the interests of consumers, including the end users of financial services, are represented at the Union level so that developments in the Single Market also respond to their needs and foster consumer and investor trust in the Single Market.

Recital 20: (20) The TFEU includes a system of rules ensuring that competition is not distorted in the internal market and provides that the Union has exclusive competence in establishing competition rules. The programme should contribute to the Union’s competition policy and the well-functioning of the Single Market, in particular effectively tackle the significant challenges resulting from the global market developments and the digitalisation, and fostering a clean, just, competitive and digital transition of the economy and business environment. Using the right technology and skills to monitor markets, collect, process and analyse information more effectively is crucial for strengthening and speeding up the enforcement of competition rules and for ensuring their effective and consistent application throughout the Union. Those technologies should modernise competition policy and help to enhance the analysis and assessment of market developments including through the development and deployment of common or interoperable digital tools, secure data-sharing systems and harmonised analytical methodologies. It is also essential that the programme supports networks, reinforces cooperation with national authorities and courts, strengthens international cooperation, and ensures an outreach to a wider group of stakeholders in communicating and explaining the rights, benefits and obligations of the Union’s competition policy. The programme should contribute to fair competition and a level playing…

✦ Formal Replaces a bracketed footnote marker with a footnote number after '28th regime'.

Recital 22: (22) The development of the Union regulatory framework in the areas of company law and corporate governance, and contract law, is essential to make businesses more efficient and competitive, while providing protection for all relevant stakeholders, in particular workers, affected by company operations, and to respond to emerging policy challenges. The support to appropriate evaluation, implementation (including digital development) and enforcement of the relevant acquis, which inform and assist stakeholders, facilitate secure information exchange and ensure legal certainty with regard to the companies in the Single Market. The upcoming European Innovation Act and 28th[1]28th22 regime for companies could directly contribute to the Union competitiveness. A clear and well-adapted legal framework for the data economy and innovation is necessary including digitalisation and information sharing between companies and administrations using the European Business Wallet, the Single Digital Gateway or other digital means for placing products in the Single Market such as the Digital Product Passport that should include relevant data in line with Union law. It would enhance legal certainty with regard to contractual and extra contractual obligations, in particular with regard to liability, security, ethics and privacy in the context of advanced and emerging technologies, including artificial intelligence and quantum technologies.

✦ Formal Corrects punctuation and spacing in the recital on the Customs Union reform.

Recital 23: (23) The Customs Union remains the foundation of the Union and a fundamental enabler and guardian of the competitive Single Market and other Union political priorities, including European economic security. The Customs Union is instrumental in implementing the Union’s commercial policy, in protecting the financial and economic interests of the Union and its Member States as well as ensuring safety and security within the Union. In response to the need to address the challenges, including the necessity to facilitate fair and rules-based international trade in the best interest of consumers, European businesses and competitiveness, the Customs Union and the related economic operators, as well as the national customs authorities face, in light of the evolution of their role and of the business models in which they operate, on 17 May 2023, the Commission put forward a proposal23 for the most ambitious and comprehensive reform of the Customs Union since its establishment in 1968.A1968. A more cost-efficient and effective cooperation framework governing the Customs Union is to be established, based on a new partnership among customs authorities, all relevant national authorities and Union bodies and agencies, and between customs and businesses, and by establishing the EU Customs Authority which should coordinate and facilitate operational cooperation between the customs authorities of Member States, as well as develop and manage the EU Customs Data Hub.

Recital 23 a (new): (23a) Customs authorities are the lead authorities for the control of goods entering the Single Market at the Union’s external borders. Effective customs controls are essential to protect consumers and to prevent unfair competition. In particular, the rise of e-commerce and the immense inflow of non-compliant low value parcels to the Single Market, that distorts competition and endangers consumers, pose significant challenges to customs authorities, the level playing field, health and safety of consumers, and the wider EU economy. The reform of the Union Customs Code aims to equip customs authorities with the tools and abilities needed to tackle these challenges. The Union Customs Code established a new digital infrastructure as the primary tool for ensuring a unified and effective European risk management strategy, through increased coordination and the EU Customs Data Hub. This will require adequate and dedicated resources to ensure a successful transition and a high-level performance at full capacity, and robust cybersecurity and resilience. Resources made available under the programme for cooperation between customs authorities and with market surveillance authorities and for the development of the EU Customs Data Hub should be clearly specified in the annual work programmes.

Recital 29: (29) Europe must protect its security interest, including economic, financial, technological and digital, against suppliers which could pose a security or sovereignty risk to the Union, through the potential interference from third countries. It is therefore necessary that, for security reasons and in accordance with Union law, eligibility restrictions apply to high-risk suppliers, in order to reduce the risk of one-sided or persisting dependency on high-risk suppliers in the internal market, including in the ICT supply chain, as they could have serious potential negative impacts on security for consumers, users and companies across the Union and the Union’s critical infrastructure in terms of the integrity of data and services as well as the availability of service. This restriction should be based on a proportionate risk assessment and associated mitigation measures as defined in the Union policies and laws. In this context, the programme should contribute to reinforcing the security of customs control and scanning equipment, and digital solutions in the customs, market surveillance, tax and financial areas developed at national and Union levels.

✦ Formal Replaces bracketed footnote markers with footnote numbers in the citations of Council Regulation (EC) No 515/97 and Council Decision 2009/917/JHA, and completes the word 'irregularities'.

Recital 31: (31) Article 325 TFEU requires the Union and the Member States to counter fraud, corruption and any other illegal activities affecting the financial interests of the Union. The Union should support activities in those fields. In accordance with Council Regulation (EC) No 515/97[1]515/9725 and Council Decision 2009/917/JHA[2]2009/917/JHA26 the Union is to support mutual assistance between the administrative authorities of the Member States and cooperation between the latter and the Commission, and Union bodies and agencies, including the EPPO, where appropriate, in respect of those Member States participating in enhanced cooperation pursuant to Council Regulation (EU) 2017/1939, to ensure the correct application of the law on customs, tax and agricultural matters. That support covers not only anti-fraud activities in relation to combating customs fraud and tax fraud, but also in relation to illicit trade in the fields of safety and security, health and the protection of the environment and is provided to a number of operational activities. Those include the Anti-Fraud Information System (AFIS), an information technology platform which consists of a set of applications operated under a common information system, managed by the Commission, aimed to exchange fraud-related information between the competent national and EU administrations in a timely and secure manner and to store and analyse relevant data. That common information system comprising AFIS and IMS, dedicated to report to the Commission irr…irreg…

✦ Formal Replaces a bracketed footnote marker with a footnote number in the citation of the Agreement on the European Economic Area.

Recital 32: (32) Third countries which are members of the European Economic Area (‘EEA’) may participate in the programme in the framework of the cooperation established under the Agreement on the EEA[1],EEA27, which provides for the association to the programmes on the basis of a decision adopted under that Agreement. Third countries may also participate on the basis of other legal instruments. Third countries should be required to grant the necessary rights and access required for the authorising officer responsible, OLAF and ECA to comprehensively exercise their respective competences. To ensure a fair balance of overall costs, the financial contributions of all third countries participating in the programme will be set out in the association agreements for participation and establish both an operational contribution and a participation fee. The financial contributions should be calculated following a GDP-based approach, which ensures financial contributions are fair, proportionate and predictable, while reflecting each country’s income level as well as its geographical and political proximity to the Union.

✦ Formal Replaces a bracketed footnote marker with a footnote number in the citation of the Commission Communication of 11 February 2025.

Recital 33: (33) In line with the Commission’s commitment to ensure the coherence and simplification of funding programmes, as set out in its Communication of 11 February 2025 on ‘The road to the next multiannual financial framework’[1],framework’28, resources should be shared with other Union funding instruments if the actions envisaged under the programme pursue objectives that are common to various funding instruments, excluding double financing.

Recital 33 a (new): (33a) Actions under the programme should ensure coherence in the use of the Union’s resources supporting tax policy and its proper implementation in line with the Commission's legal obligations in the Union tax acquis. Through the development, continued operation and modernisation of the key digital infrastructures for taxation, enhanced cooperation and capacity building, the programme should further improve the capabilities of the Union to deliver a fair and efficient tax system. Such support should be linked to measurable improvements in tax compliance, reductions in VAT gaps and strengthened cross-border fraud detection capacity. The allocation of IT funding should follow transparent and risk-based criteria.

Article 10 – paragraph 1 – point 8: (8) for actions regarding customs or taxation, customs or tax authorities of Member States, and EU Customs Authority, and customs or tax authorities of third countries participating in the programme, provided that the conditions set out in Article 7 are met;

✦ Formal Corrects punctuation and spelling in the new point on eligible entities for actions protecting the Union's financial interests.

Article 10 – paragraph 1 – point 8 a (new): (8a) for actions regarding the protection of the financial interests of the Union, including preventing and combatting fraud, corruption and any other illegal activities, the administrative, law enforcement, customs, tax or other competent public authorities,authorities of MembersMember States or in third countries participating in the programme, provided that the conditions set out in Article 7 are met;

Article 11 – paragraph 1: 1. The programme shall be implemented by annual work programmes as referred to in Article 110 of Regulation (EU, Euratom) 2024/2509.

Article 13 – paragraph 1: 1. This Regulation shall not affect the continuation or modification of the actions carried out under Regulations (EU) 2021/444, (EU) 2021/690, (EU) 2021/785, (EU) 2021/847 and (EU) 2021/1077, which shall continue to apply to those actions, until their closure.

✦ Drops the committee report's explanatory statement, budgetary assessment, short justification and amendments, including calls to increase the programme envelope, introduce sub-envelopes, delegated acts for work programmes, and reporting and evaluation provisions.

The Single Market is at the heart of the European project. It is the engine of our economies, the springboard to our businesses and safe home for European consumers. As we enter a new financial cycle, the Single Market is under pressure. In addition to persistent challenges, including inter alia regularity fragmentation, unjustified internal barriers, limitations in enforcement, the internal market is also faced with unprecedented challenges in a volatile geopolitical situation. These include an intensified global competition, a weaponization of dependencies, the rise of digital markets, sharp inflows of non-compliant and illegal goods, and mounting threats to the Union’s financial interests, including by fraud and illegal activities.

The Single Market is our best anchor for stability, driver for prosperity and shield to counter external pressure. However, to achieve its full potential and secure the integrity of our internal market, protecting the interests of our economies, business and citizens, we need to build on its strengths and reduce its weaknesses. A collective and coordinated Union response, to strengthen the Single Market, our Union’s interests and our resilience, will be key. The Single Market and Customs Programme will be a critical and strategic instrument to achieve this.

As part of the post-2027 Multiannual Financial Framework (MFF) package, the Commission proposes a new Single Market and Customs Programme (SMCP) for the 2028-2034 period, bringing together four programmes, supporting activities in different policy areas, under one consolidated framework. The SMCP aims to strengthen the Single Market, the Customs Union, tax cooperation and the fight against fraud. The reduced design aims to foster flexibility, simplification and synergies, supporting the Union’s horizontal policy mainstreaming priorities.

Overall, the IMCO Report welcomes the new Single Market and Customs Programme and supports the objective to increase synergies with a more integrated approach to improve the well-functioning internal market. With the SMCP, key and interconnected policy areas such as customs, market surveillance and anti-fraud activities, which are operationally closely connected, are strategically brought together under the same financial envelope and governance model. The Report also reflects the European Parliament position on the overall EU long-term budget for the period 2028-2034 as adopted in the MFF Interim Report in April, and welcomes the increase of the total financial envelope of the SMCP of approximately ten percent given the criticality of strengthening the Single Market in times of increased pressure and uncertainty.

Nevertheless, the IMCO Report proposes several key changes to enhance the overall package, improve clarity on key objectives, and strengthen the governance structure of the programme.

Accountability and predictability

While the Rapporteur sees merit in a flexible approach, in particular in regard to responsiveness to changing needs and circumstances over time, this must be balanced by an adequate level of predictability, transparency, and mechanisms for accountability. This is important for several reasons. To provide enough predictability for beneficiaries, to ensure consistency and financial continuity for core objectives, systems and legally mandated activities, and to ensure that democratic oversight, control and governance is safeguarded. In this context, the Report proposes, inter alia, more clearly defined programme objectives, an improved structure on horizontal versus programme specific objectives, aligned with a budget breakdown allocating funds to the respective key elements of the programme accordingly.

Clarity on objectives

The Report aims to clarify the objectives of the programme, while maintaining a simpler, yet comprehensive structure. Specifically, the text reinforces key elements including to improve the well-functioning of the Single Market, strengthen the EU customs union, empower and protect consumers, ensuring fair competition, as well as protect the Union’s financial interests, including by supporting and strengthening anti-fraud activities. In addition, the Rapporteur proposes a streamlined structure with the aim to make sub-objectives to a larger extent mutually exclusive and collectively exhaustive, as well as align Article 3 on programme objectives to the proposed budgetary allocation. This improves the link between objectives and budget allocations, enabling better oversight, legal basis for prioritisation and stronger governance.

Monitoring, reporting and evaluation

A strong performance framework is key to monitor and evaluate the progress and performance of the Programme. Increased flexibility cannot come at the expense of oversight, monitoring, and evaluation. Nevertheless, the Report recognises the value in the horizontal performance framework in the new MFF cycle and hence refrains from introducing programme specific provisions on reporting, monitoring, and evaluation. The Rapporteur stresses, however, that the new centralized Performance Regulation needs to deliver clear, timely, meaningful and comparable performance mechanisms and indicators to ensure that the programme can be properly monitored and scrutinized, and its impact is comprehensively assessed and evaluated.

Implementation

Furthermore, the Report suggests introducing delegated acts for the adoption of work programmes. This would give Parliament clear information rights and allow better oversight and scrutiny of the implementation of the programme. Considering the programme’s strategic importance for the Single Market and the Union, such a mechanism is important for adequate democratic oversight and governance.

Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur declares that he included in his report input on matters pertaining to the subject of the file that he received, in the preparation of the report, prior to the adoption thereof in committee, from the following interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register, or from the following representatives of public authorities of third countries, including their diplomatic missions and embassies:

The list above is drawn up under the exclusive responsibility of the rapporteur.

Where natural persons are identified in the list by their name, by their function or by both, the rapporteur declares that he has submitted to the natural persons concerned the European Parliament's Data Protection Notice No 484 (https://www.europarl.europa.eu/data-protect/index.do), which sets out the conditions applicable to the processing of their personal data and the rights linked to that processing.

25.6.2026

for the Committee on the Internal Market and Consumer Protection

on the proposal for a regulation of the European Parliament and of the Council establishing the Single Market and Customs Programme for the period 2028-2034 and repealing Regulations (EU) 2021/444, (EU) 2021/690, (EU) 2021/785, (EU) 2021/847 and (EU) 2021/1077

(COM(2025)0590 – C100198/2025 – 2025/0590(COD))

Rapporteur for budgetary assessment: Danuše Nerudová

The Committee on Budgets has carried out a budgetary assessment of the proposal under Rule 58 of the Rules of Procedure and has reached the following conclusions:

The Committee on Budgets,

A. whereas the proposal brings together parts of five separate programmes existing under the current multiannual financial framework (MFF), creating therefore a single envelope in the area of the single market, customs, taxation and anti-fraud;

B. whereas in the current geopolitical context, removing barriers and reducing fragmentation is essential to unlocking new opportunities of growth across the economies of the Union and its Member States;

C. whereas the absence of indicative sub-envelopes in the single market and customs programme’s (SMCP) budgetary architecture affords the Commission a degree of discretion over spending priorities during implementation that is incompatible with the principle of sound financial management and with the prerogatives of the budgetary authority; whereas the establishment of transparent sub-allocations per programme strand is a prerequisite for effective parliamentary scrutiny and accountability;

D. whereas customs duties constitute a traditional own resource of the Union, and the effective functioning of customs authorities is therefore directly linked to the protection of the Union budget; whereas the proliferation of low-value consignments from third countries, often misclassified or undervalued, represents a direct threat to Union budget revenues, compounded by the exponential growth of e-commerce which has substantially increased the volume and complexity of customs operations without a commensurate increase in the resources allocated to customs authorities under the current MFF;

E. whereas the presence of low-cost imported goods from third countries, frequently placed on the Union market in non-compliance with Union safety, environmental, labelling and consumer protection standards, creates unfair competitive conditions for small and medium-sized enterprises (SMEs) based in the EU that bear the full cost of regulatory compliance; whereas the programme should contribute to addressing this asymmetry through strengthened market surveillance and customs enforcement at the Union’s external borders;

F. whereas the rapid growth of e-commerce has significantly increased low-value imports, creating substantial challenges for the competitive position of Union businesses and for customs and market surveillance authorities in ensuring compliance with Union standards; whereas the EU Customs Reform introduced a Union handling fee per parcel in order to tackle high e-commerce volumes, applicable from July 2026;

G. whereas the European Court of Auditors delivered its Opinion 08/2026;

H. whereas the European Economic and Social Committee delivered its Opinion INT/1104;

I. whereas the 2026 Annual Single Market and Competitiveness Report noted that only 20.6 % of single market procedures are fully available online for cross-border users, imposing an unnecessary administrative burden on citizens, entrepreneurs and businesses, in particular micro-companies and SMEs, and limiting their ability to fully benefit from the single market;

1. Considers that the programme envelope should be increased from EUR 6.2 billion (EUR 5.5 billion in 2025 prices) to EUR 6.9 billion (EUR 6.1 billion in 2025 prices), in order to deepen the single market while promoting convergence, strengthen the capacity of customs and market surveillance authorities, and protect the safety, security, and financial and economic interests of the Union and its Member States;

2. Considers that sufficient resources, including human, technical and IT resources, must be available from the outset and throughout the entire programming period of the 2028-2034 MFF to ensure an effective implementation of the SMCP, while ensuring that existing resources are used efficiently and avoiding unnecessary administrative burdens; underlines that customs authorities must be equipped with the digital tools, risk-profiling capacities and inter-agency coordination mechanisms necessary to detect and intercept non-compliant consignments at scale, including through the development and deployment of data analytics models and artificial intelligence-based risk assessment systems, as well as to ensure interoperability between national databases;

3. Stresses that the growth of e-commerce has resulted in a significant workload increase for customs authorities, which must therefore be provided with appropriate resources to carry out their functions; recalls that the new European Customs Authority Agency will be established in order to support and coordinate the work of national customs authorities; underlines that customs duties constitute a traditional own resource of the Union and that customs authorities therefore serve the interest of the Union as a whole;

4. Considers that, while some degree of flexibility would enable timely adjustment to evolving spending priorities, above all in view of the on-going review of the EU’s customs code and the EU anti-fraud architecture, predictability and internal safeguards should be ensured in particular for mandatory programme functions; strongly deplores the lack of breakdown of the budget of SMCP; notes that this would give the Commission great latitude to shift and decide on spending priorities during implementation; expresses concern that the overly aggregated budgetary architecture would substantially facilitate transfers not subject to budgetary authority decisions; stresses that simplification and flexibility must not come at the expense of transparency and oversight of the budgetary authority; further regrets that the impact assessment accompanying the proposal does not sufficiently analyse how flexibility mechanisms should be prioritised or balanced across strands with differing operational needs, cost structures and implementation horizons; strongly recommends, therefore, that the basic act include indicative sub-envelopes for core programme functions, and that decision-making criteria and documentation requirements governing the use of carry-overs, external assigned revenue and cumulative funding under Articles 4 to 6 are defined;

5. Stresses, in particular, that flexibility must not jeopardise the continuity of mandatory programme functions, which require predictable long-term investment, namely customs IT systems, taxation IT systems, the Anti-Fraud Information System, the Irregularity Management System and European statistics, and underlines the importance of introducing prioritisation safeguards in the basic act to ensure that these systems are adequately protected in the context of internal reallocations during annual programming;

6. Recalls that the budgetary nomenclature must be established in line with Article 47(2) of Regulation (EU, Euratom) 2024/2509 (the Financial Regulation), which provides that each title must correspond to a policy area and each chapter, as a rule, to a programme or an activity, in line with the principles of specification, sound financial management and transparency; considers, therefore, that the basic act should include a budgetary nomenclature that adequately reflects the sub-envelopes established in the basic act, with reference amounts for specific objectives; recommends that the Committee on the Internal Market and Consumer Protection amend the proposal to include an annex defining the nomenclature of the programme; insists that the budgetary nomenclature forms an integral part of Parliament’s negotiating position and must be discussed in interinstitutional negotiations; considers, in this regard, that the revised Legislative Financial and Digital Statement (LFDS) must form part of the final political agreement;

7. Deplores the lack of a sufficiently detailed indicative budgetary nomenclature proposed in the LFDS; considers that this will hamper the budgetary authority’s ability to steer accurately policy priorities in the annual budgetary procedure; expresses concerns that the overly aggregated budgetary architecture would dramatically increase the Commission’s discretion in transferring and reallocating resources without a decision from the budgetary authority, and would severely limit parliamentary oversight; recommends, therefore, a more detailed nomenclature that properly reflects the objectives and structure of SMCP and enhances transparency, accountability and parliamentary control;

8. Insists that sufficiently detailed and sound legislation, with an appropriate level of governance, is a condition for proper budgetary decision-making and adequate parliamentary oversight during budget implementation; recommends introducing provisions to strengthen control over how the budget is mobilised and spent; considers that the so-called steering mechanism can in no way be a substitute for Parliament’s legislative and budgetary powers, and cannot be conceived without a sound governance architecture that ensures the effective exercise of such powers;

9. Believes that all substantive policy choices such as programme objectives, spending priorities, financial allocations, funding rates, eligibility, selection and award criteria, conditions, definitions and calculation methods must be determined in the basic act, with full respect for Parliament’s prerogatives as a co-legislator and one arm of the EU’s budgetary authority, and that any non-essential elements entailing policy choices that are not included in the basic act must be adopted through delegated acts, including work programmes, where appropriate;

10. Underlines that, given the diversity of activities covered by SMCP, consolidation into a single framework will require an appropriate level of governance, a coherent prioritisation system, transparent resource allocation and robust monitoring and evaluation mechanisms, thereby ensuring efficient resource use and avoiding duplication and unnecessary complexity; stresses, with a view to reducing the administrative burden, the importance of modernising and standardising digital infrastructure and ensuring the practical usability of Union-level digital tools for administrations and economic operators across all Member States, as well as for enforcement-related activities, in order to ensure that goods placed on the Union market comply with applicable Union safety, environmental and consumer protection rules;

11. Takes note of the suggested complementarity between SMCP and other programmes such as National and Regional Partnership Plans, the European Competitiveness Fund, Horizon Europe, the Connecting Europe Facility and Global Europe; highlights that while synergies and coordination between programmes are important, their governance structures must preserve their distinct objectives, legal basis and decision-making autonomy; emphasises, in this context, that SMCP should retain its specific focus on the proper functioning and enforcement of the single market and should not be driven by broader competitiveness objectives; stresses that enhanced complementarity between instruments must not come at the expense of traceability of expenditure or the prerogatives of the budgetary authority nor lead to double funding; underlines that the contribution of SMCP to operations financed jointly with other instruments must be explicitly identifiable at all stages of the budgetary cycle; stresses, in this regard, that any such contribution must be duly reflected in the programme performance statement for the SMCP programme; notes, in particular, that programmes supporting digital infrastructure, customs cooperation and product compliance databases should be coordinated with other Union instruments to maximise the effectiveness of enforcement across the single market without undermining the transparency of these financial actions and of other Union programmes; insists that the budgetary authority retain full control over how resources are combined across instruments and over the effective contribution of each programme to EU priorities, specifically through detailed budgetary nomenclature; stresses that enhanced complementarity between programmes must not lead to disproportionate complexity for beneficiaries; calls for EU funding to be clearer, more accessible and more coherent in order to facilitate uptake and maximise the impact of investments;

12. Calls for the programme to support simplified procedures and practical digital tools, in particular those designed to reduce cross-border compliance costs, that enable SMEs to operate more easily across the single market and reduce the burden created by fragmentation and administrative complexity;

13. Recommends the lead committee to ensure that entities participating in actions involving the development, deployment or use of IT systems and digital tools under this programme retain full control over critical infrastructures and data to protect the financial interests of the Union; stresses the importance of relying on the use of open standards, ensuring transparency of software components, and safeguarding against strategic dependencies on third-country providers;

14. Stresses that the use of external assigned revenue under SMCP must be clearly circumscribed, fully transparent and subject to effective parliamentary scrutiny, while fully respecting the prerogatives of the budgetary authority; takes note, in that regard, of the provisions relating to additional contributions to the programme; recalls the importance of ensuring the traceability of external assigned revenue; underlines that, should the lead committee consider amending provisions relating to external assigned revenue, this should be done in coordination with the Committee on Budgets and the other committees in order to ensure a consistent approach; calls on the Commission to publish, alongside each annual work programme, a comprehensive overview of all external assigned revenue expected to be mobilised, their origin and their allocated use, and underlines that any broadening of the scope of external assigned revenue beyond that expressly provided for in the basic act must require the prior agreement of the budgetary authority;

15. Stresses that public procurement accounts for 15 % of EU GDP and that, in the light of the upcoming revision of the directives, particular focus should be given to actions that support the integration of qualitative, environmental, social and innovation-related considerations into public procurement procedures through the systematic use of the best price-quality ratio, rather than only relying on lowest-price criterion; notes that such actions can include capacity-building and guidance for contracting authorities on how to apply those criteria in the context of the award of public contracts, while safeguarding the principles of transparency, equal treatment and fair competition;

16. Recalls the proposal for a regulation on establishing a budget expenditure tracking and performance framework and other horizontal rules for the Union programmes and activities (the ‘performance regulation’), which establishes a single streamlined list for performance indicators and monitoring and evaluation provisions, some of which are relevant for SMCP; expresses concern that the highly heterogeneous activities funded under SMCP might affect the reliability of the performance indicators, and calls for clearer identification of strand-specific results and greater emphasis on results rather than outputs, while avoiding an increase in administrative burdens and ensuring the proportionality of requirements and harmonised national data-quality requirements; underlines that any change to the architecture, objectives and eligible actions under the programme will need to be appropriately reflected in Annex I of the performance regulation, as part of the process of amending and negotiating that regulation; points out that, while sectoral legislation can supplement the performance regulation, for instance as regards programme evaluations, it should remain consistent with the provisions of that regulation;

17. Calls for the programme to support the development of a fair, competitive and more coherent single market based on clear, consistent and effectively enforced rules, in order to ensure a level playing field, reduce legal fragmentation, promote fair competition and regulatory clarity, and improve access to clear and predictable cross-border rules;

18. Stresses that the programme should ensure a sufficient level of administrative capacity, digital preparedness and enforcement capability, to prevent a de facto multi-speed single market; underlines that customs, market surveillance, anti-fraud and digital implementation capacities must be supported in a balanced manner across the Union, so that all Member States can effectively enforce Union law and ensure a comparable level of protection for citizens, consumers and businesses;

19. Calls for the programme to support, where relevant, the continuity and completion of strategic projects launched under previous Union instruments, including projects started under the Recovery and Resilience Facility, in particular in the areas of digitalisation, customs, market surveillance and anti-fraud.

SHORT JUSTIFICATION

The proposal put forward by the European Commission seeks to merge four existing programmes into a single, streamlined instrument, with the objective of contributing to the smooth functioning of the Single Market and the Customs Union, while supporting taxation and anti-fraud objectives and fostering greater synergies across policy areas. The imperative of flexibility underlying this approach, including the possibility of transferring funds between priorities and adapting to emerging needs, is fully understood and reflects the need for a more coherent and efficient use of Union resources. However, this increased flexibility does not provide sufficient guarantees in terms of transparency, accountability, and democratic scrutiny, particularly for the European Parliament, as the proposal does not clearly define prioritisation between core functions, lacks clear implementation trajectories, and does not require work programmes to demonstrate alignment with policy needs. In line with the observations of the European Court of Auditors, the draft opinion therefore aims to restore an appropriate balance by strengthening monitoring, reporting, and evaluation requirements, ensuring that work programmes clearly identify priorities, expected progress, and measurable outcomes, and facilitating meaningful political scrutiny. Furthermore, while the integration of Fiscalis into a broader instrument is understood in light of the objective of simplification, its disappearance as a stand-alone programme raises specific concerns, especially given the strong performance, clear Union added value, and tangible revenue gains demonstrated by its interim evaluation. The draft opinion therefore seeks to clarify and reinforce the tax policy and statistical strands of the programme by reaffirming their objectives, embedding tax priorities more explicitly in the regulation, and ensuring that eligibility criteria and implementation measures reflect the programme’s role in supporting tax authorities, improving tax collection, and combating tax fraud, tax evasion, and tax avoidance. In doing so, the opinion supports the overall objectives of the Commission’s initiative while ensuring that flexibility is balanced with robust guarantees for transparency, effective oversight, and the protection of the Union’s core taxation and statistical interests.

AMENDMENTS

The Committee on Economic and Monetary Affairs submits the following to the Committee on the Internal Market and Consumer Protection, as the committee responsible:

Recital 5: (5) The programme is to be implemented in accordance with Regulation (EU, Euratom) 2025/XXXX of the European Parliament and of the Council9 establishing a budget expenditure tracking and performance framework and other horizontal rules for the Union programmes and activities, including rules for ensuring a uniform application of the principles of ‘do no significant harm’ and gender equality referred to in Article 33(2), points (d) and (f), of Regulation (EU, Euratom) 2024/2509 respectively,the principles of preparedness and climate resilience by design, rules for monitoring and reporting on the performance of Union programmes and activities, rules for establishing a Union funding portal, rules for the evaluation of the programmes, as well as other horizontal provisions applicable to all Union programmes such as those on information, communication and visibility. The Commission should ensure sound financial management and transparency in the implementation of the programme. Transparency should include publication of allocation criteria and details on progress towards measurable objectives.

Recital 7: (7) The Single Market is governed by the fundamental principles of free movement of goods, services, people, and capital and has been a major contributor to growth, competitiveness and employment. A well-functioning and safe-guarded Single Market is a pre-requisite for a competitive, safe and secure Union economy and for advancing the Savings and Investments Union. As stressed by the new approach proposed by the Single Market Strategy, more action is needed to address the barriers, stimulate reforms, reduce fragmentation and complete the Single Market, especially in the context of new global challenges.This has been and will continue to be reinforced by an effective cohesion policy as an additional key condition for the success of the Single Market. The Member States and the Commission share the responsibility for enforcing Union law to ensure compliance with Single Market rules and to protect people’s and businesses’ rights. The Union-level responsibility combines three main aspects: removal of barriers, collaboration between Member States, and corrective implementation and enforcement actions and stimulating reforms. Barriers such as knowledge and data gaps, administrative complexity, in particular in cross-border activities, and gold plating are obstacles for citizens, consumers, businesses, investors, economic operators to access and operate within the Single Market. Capacity building, administrative and operational cooperation, including digital cooperation, and integrat…

Recital 8: (8) Under the multiannual financial framework for the years 2021 to 2027 laid down in Council Regulation (EU, Euratom) 2020/209311 , the Single Market Programme (‘SMP’) established by Regulation (EU) 2021/690 of the European Parliament and of the Council12 supports the design, implementation and enforcement of Union legislation underpinning the proper functioning of the Single Market, so that it can reach its full potential. The Customs programme established by Regulation (EU) 2021/444 of the European Parliament and of the Council13 and the Fiscalis programme established by Regulation (EU) 2021/847 of the European Parliament and of the Council14 accompany the customs and tax policies in the Union by supporting Union level digital solutions for customs and taxation, which are essential for the effective implementation of Union law, project based collaborative activities as well as human competency building activities. In addition, the Customs Control Equipment Instrument established as part of the Integrated Border Management Fund by Regulation (EU) 2021/1077 of the European Parliament and of the Council15 , contributes to increasing the efficient and effective customs controls, essential for the facilitation of legitimate trade, while ensuring sufficient level of protection at the external borders. The Union Anti-Fraud Programme (‘UAFP’) established by Regulation (EU) 2021/785 of the European Parliament and of the Council16 funds actions which aim to prevent and combat fraud,…

Recital 9: (9) With economic and security uncertainty caused by geopolitical challenges and trade tensions, as well as other challenges such as customs and VAT fraud and excise fraud, the Single Market is our anchor for stability and resilience. Those challenges require a collective and coordinated Union response considering their scale and the high levels of interdependence among Member States and regions. In addition, an adequate level of protection and resulting benefits for citizens, consumers, investors and businesses could not be achieved solely through actions at national level, nor could it generate economies of scale, especially given the cross-border nature of those benefits.

Recital 10: (10) Union funding is required to enable the Commission to meet legal obligations of the Union that cannot be delegated to Member States, ensuring obligations under Union law are fulfilled, in particular in the areas of customs, market surveillance, product conformity, consumer protection, financial services, standard setting, competition policy, the provision of European statistics, taxation and anti-fraud, given their cross-border nature and impact on the integrity of the Single Market.

Recital 11: (11) It is therefore appropriate to establish a programme to enhance and deepen the functioning of the Single Market and a strong Customs Union and to protect the financial and economic interests of the Union and the Member States, with a design fostering flexibility, simplification and synergies, and supporting the horizontal policy mainstreaming priorities including what is set out in Regulation (EU, Euratom) 2025/XXXX of the European Parliament and of the Council17 establishing a budget expenditure tracking and performance framework and other horizontal tax rules for the Union programmes and activities. The following four programmes should therefore be merged in one single programme: parts of the Single Market Programme, excluding the small and medium-sized enterprises and food and feed strands, the Customs programme, including the Customs Control Equipment Instrument type interventions, the Fiscalis programme and the Union Anti-Fraud programme. A continuous and agile funding should be ensured in the areas of the Single Market, customs, taxation and anti-fraud, including research, funding for cooperation between national administrations encompassing activities such as streamlining administrative processes, harmonising rules across Member States, or facilitating quicker responses to evolving challenges with a comprehensive preparedness and crisis-response framework. While the overall objective is to enhance coherence, simplify access to Union funding, and reduce administrat…

Recital 12: (12) In this regard, the programme should enable the implementation of the following generic types of actions: (a) digital capacity building, development and operation of centralised and decentralised European electronic systems and digital solutions, implementation tools and data; (b) support to policy, regulatory and enforcement work, for example, through studies, communication, impact assessment, evaluation and simplification proposals; (c) collaboration and cooperation between Member States, the Commission, Union agencies and national authorities and with stakeholders; (d) administrative and operational/technical capacity building, including purchase, maintenance, upgrade of equipment – notably customs control equipment – infrastructure and related costs; (e) human competency building; (f) joint tools, methods, data and statistics to support policy making and anti-fraud investigations, in particular into VAT fraud and excise fraud; (g) other actions to achieve the general and specific objectives, such as innovation, testing.

Recital 13: (13) In light of the growing digitalisation of the economy and society, there is an increasing need for citizens, consumers, investors, economic operators, businesses, and public administrations to have timely, accurate and accessible information and advice on the functioning of the Single Market and their rights and obligations under Union law. Furthermore, reinforced cooperation and integration to ensure digitally enabled, seamless implementation, consistent and effective enforcement across the Union and to prevent barriers and limitations hindering the proper functioning of the Single Market, taxation, anti-fraud reporting, investigations and policies and the Customs Union should be enabled. Union authorities and bodies should maintain effective rulemaking, standard setting, as well as implementation and enforcement of Union law in the face of changing circumstances and to ensure enforcement of restrictive measures in the management of Union funds.

Recital 14: (14) The programme should therefore further improve the functioning of the Single Market, including the external dimension, protect and empower citizens, consumers and businesses. That should be achieved by developing, implementing and enforcing Union law, offering digital tools and solutions, facilitating market access and public procurement, ensuring resilience, management of emergencies and security threats or crisis, standard setting, and supporting the development of the Union regulatory framework. The programme’s actions should cover the areas of intellectual property rights, company law, anti-money laundering, and contract law, and by ensuring a high level of consumer protection, including protection of passenger rights, and market surveillance, financial literacy, the free movement of capital and financial services, effective and efficient competition enforcement, customs, anti-fraud, effective and efficient enforcement of Union restrictive measures and taxation. The programme should also enhance cooperation between the competent authorities of Member States and the Commission, in particular cooperation and increased synergies between various national authorities, including national enforcement bodies, as well as cooperation between Member States, the Commission and third countries, including by providing digital solutions to improve information sharing among national authorities and with relevant stakeholders. It should allow to develop, produce and disseminate high-…

Recital 15: (15) European statistics are essential, as they underpin the design, monitoring and evaluation of all Union policies and empower all members of society, including policy makers, businesses, academia, citizens and the media to make informed decisions and to actively participate in the democratic process. High-quality, timely, reliable and comparable official European statistics should be produced and disseminated to provide valuable insights and address knowledge gaps, allowing citizens, consumers, investors and businesses to benefit fully from the Single Market. Funding should support the production of high-quality European statistics, modernising statistical systems, promoting statistical innovation and integrating digital tools to improve accuracy and speed. In view of its horizontal character, the legal framework for the development, production and dissemination of European statistics established by Regulation (EC) No 223/2009 of the European Parliament and of the Council18 is subject to specific requirements, and in particular those laid down in that Regulation, with regard to respect for statistical principles, as well as the functioning of the European Statistical System and its governance, including the role and tasks assigned to the European Statistical System Committee and to the Commission (Eurostat), and the establishment and implementation of the programming of the statistical activities.

Recital 17: (17) The programme aims to foster business, consumer and investor trust in the Single Market and the Customs Union by ensuring proportionality in regulatory burden, efficient processes and a high-level of consumer protection, including the protection of passengers, consumers of financial services, product safety and consumer empowerment, thereby enabling consumers to fully benefit from the Single Market and to contribute to a competitive, innovative, and dynamic Single Market. The programme should safeguard consumers’ safety and rights as well as their legal and economic interests through concrete and effective measures which support, supplement and monitor the policy implemented by the Member States. Moreover, consumers should be empowered and encouraged to make sustainable and informed choices. In the area of financial services, that includes ensuring that consumers and end-users, through strengthening financial literacy and understanding of the sector, are equipped to understand the risks and costs of different categories of financial products and services. It is necessary to ensure that consumer protection, rights and product safety requirements are effectively implemented, uniformly enforced, and consistently upheld across the Union, thereby contributing to the creation of a level-playing field for consumers, investors and businesses. Consumer organisations at both national and Union-level play a crucial role in promoting the interests of consumers, representing the inte…

Recital 20: (20) The Treaty on the Functioning of the European Union (TFEU) includes a system of rules ensuring that competition is not distorted in the internal market and provides that the Union has exclusive competence in establishing competition rules. A level playing field within the Union benefits consumers and strengthens the competitiveness of its businesses and underpins the Union's economic weight globally. The programme should contribute to the Union’s competition policy and, in particular, tackle the significant implications for competition and the functioning of the Single Market resulting from the clean, just, competitive and digital transition of the economy and business environment. Using the right technology and skills to monitor markets, collect, process and analyse information more effectively is crucial for strengthening and speeding up the enforcement of competition rules and for ensuring their effective, uniform and consistent application throughout the Union. Those technologies should modernise competition policy and help to enhance the analysis and assessment of market developments including through the development and deployment of common or interoperable digital tools, secure data-sharing systems and harmonised analytical methodologies. It is also essential that the programme supports networks, in particular the European Competition Network. It is also essential that the programme supports networks, reinforces cooperation with national authorities and courts, st…

Recital 24: (24) Union tax policy plays a key role in the seamless functioning of the competitive internal market. It supports consistent tax practices across Member States, fostering a level playing field and minimising barriers to cross-border trade. Union tax policy does not only combat fragmentation and discrimination but also safeguards the financial interests of the Union and its Member States, promoting economic growth and encouraging investment within a competitive framework. Tax policy also contributes to the EU’s climate and environmental objectives. Preventing and fighting tax fraud, tax evasion and tax avoidance through enhanced cooperation and exchange of information is crucial for safeguarding those interests, alignment with the Union's wider objectives and maintaining the trust of citizens and businesses in the integrity of the internal market. Union tax policy should also contribute to ensuring that the rules agreed within the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) are implemented fully and consistently by all participating jurisdictions. The integrity and effectiveness of the global agreement depend on its uniform and faithful application. Any divergence, selective implementation or delay risks fragmenting the international tax architecture and further undermining the level playing field it seeks to establish. An efficient functioning of the Single Market also requires simplification of tax systems and digitalisation of public administrat…

Recital 25: (25) In line with the established and future legal commitments at Union level, it is crucial to continue developing and operating Union components of digital solutions in the customs and taxation fields. Those common components are essential for establishing a modern and efficient Customs Union and tax systems, for enhancing cooperation between national authorities and Union institutions, and for strengthening the preparedness, resilience and economic security of the Single Market. They contribute to enhancing the Union’s competitiveness at global level, and to improving evidence-based and digital-ready policymaking in the field of taxation and to measurable improvements in tax compliance, reductions in VAT gaps and strengthened cross-border fraud detection capacity.

Recital 28: (28) In accordance with Regulation (EU, Euratom) 2024/2509, the work programmes and the call documents are the appropriate place to set out more technical implementation details for the budget across the set of policies supported by the programme, including specific eligibility and award criteria depending on the instrument of budget implementation, whether grant or procurement, and the specific policy objectives pursued. In order to ensure transparency and facilitate monitoring and evaluation, the work programmes should clearly demonstrate Union added value, and identify prioritisation choices, allocated budget, expected trajectories and indicative milestones for implementation. In accordance with Article 136 of the Financial Regulation, security requirements should be applied. Restrictions to high-risk suppliers should apply according to the relevant applicable provisions.

Recital 31: (31) Article 325 TFEU requires the Union and the Member States to counter fraud, corruption and any other illegal activities affecting the financial interests of the Union. The Union should support activities in those fields. In accordance with Council Regulation (EC) No 515/9725 and Council Decision 2009/917/JHA26 the Union is to support mutual assistance between the administrative authorities of the Member States and cooperation between the latter and the Commission, to ensure the correct application of the law on customs and agricultural matters. That support covers not only anti-fraud activities in relation to customs fraud but also in relation to illicit trade in the fields of safety and security, health and the protection of the environment and is provided to a number of operational activities. Those include the Anti-Fraud Information System (AFIS), an information technology platform which consists of a set of applications operated under a common information system, managed by the Commission. That common information system comprising AFIS and IMS, dedicated to report to the Commission irregularities detected in areas where the Union provides financial support, requires stable and predictable financing over the years in order to ensure its sustainability, which should be made available under the programme, given the Commission’s legal obligations in that respect and the importance of the system for the protection of the Unions and the Member States economic and financial…

Article 3 – paragraph 1: 1. The general objective of the programme is to enhance and deepen the functioning of the Single Market and the Customs Union, to protect safety, security, and the financial and economic interests of the Union and its Member States, including from tax fraud, tax evasion and profit-shifting, to support tax authorities, to foster a fair and efficient tax system, and to improve tax collection, with a design fostering flexibility, simplification, synergies and the digital transformation of the Single Market, and supporting the Union’s horizontal policy mainstreaming priorities, while ensuring transparency, efficient implementation in practice and accountability towards the European Parliament.

Article 3 – paragraph 2 – point a: (a) to empower citizens, consumers, investors, economic operators and businesses by providing information, guidance and advice enabling them to make informed and practical decisions and to fully and easily access the opportunities of the Single Market for goods, people, services and capital, thereby contributing to the completion of the Single Market; to that end, actions shall include improving digital and financial literacy, ensuring fair and equal access to redress mechanisms and supporting representative organisations in their participative role, thereby strengthening trust and ensuring a high level of consumer protection;

Article 3 – paragraph 2 – point a a (new): (aa) to enhance the functioning of the Single Market by removing and preventing barriers and reducing administrative burden, and by ensuring the uniform application and enforcement of Union rules and a level playing field with fair competition across Member States; to strengthen the competitiveness of Union businesses, in particular SMEs and scale-ups, and drive industrial modernisation by fostering entrepreneurship, digital transformation and access to international markets;

Article 3 – paragraph 2 – point b: (b) to foster cooperation and facilitate exchange of information among Member States national authorities, and between Member States national authorities, the Commission and other Union bodies in all programme areas, including the preparedness and economic security of the Single Market, and response to crises; to develop and operate the common components of Union-level digital solutions and support the connection to them, ensuring user-friendliness and interoperability in order to avoid duplicative reporting requirements; to boost the operational, technical, and administrative capacities of national authorities, including customs and tax authorities;

Article 3 – paragraph 2 – point e: (e) to protect the Union’s and its Member States’ economic, financial and other interests from fraud, corruption and other illegal activities, including risks related to expenditure, revenue and assets, as well as reputational risks, support Member States’ operational cooperation and investigation activities alongside the EPPO and through the increased use of data and digital tools for fraud analysis; to support tax policy and implementation of Union law relating to taxation and improve the Union taxation systems and tax collection in view of enhancing Europe’s competitiveness and investments, while facilitating compliance and reducing unnecessary administrative burden;

Article 3 – paragraph 2 – point e a (new): (ea) to support a fair and efficient tax system in the Union through tax policy and the proper implementation of Union law on taxation by strengthening the harmonisation and interoperability of Union taxation systems and corresponding national systems through digitalisation and strengthening administrative capacity of tax authorities; to deliver fair taxation outcomes for citizens and business, protect the financial and economic interests of the Union and its Member States, including from tax fraud, tax evasion and profit-shifting, and improve tax collection; to foster tax cooperation and the exchange of tax information including through progressive modernisation of reporting, auditing and software tools, the exchange of best practices, technical support for staff training, thereby enhancing Europe’s competitiveness and attractiveness for investment;

Article 3 – paragraph 2 – point g: (g) to provide high-quality, reliable and comparable official European statistics, in a timely and impartial manner and in accordance with the quality criteria laid down in Article 12(1) of Regulation (EC) No 223/2009, to better support economic governance, competitiveness, defence, housing, social, environmental, and demographic policies, as set out in the Annex to this Regulation.

Article 3 – paragraph 2 – point g a (new): (ga) to provide paneuropean research and independent impact assessment.

Article 3 – paragraph 3: 3. The programme shall prioritise allocation of funding for the implementation of Union-level legal obligations, including relating to Single Market resilience and implementation tools, market surveillance, product conformity, standards, public procurement, intellectual property rights, competition policy, financial services policy, anti-money laundering, Union restrictive measures, company and corporate governance law, consumer policy, European statistics, customs legislation, taxation, and anti-fraud, as well as other actions pursuing the general and specific objectives referred to in paragraphs 1 and 2.

Article 3 – paragraph 3 a (new): 3a. The Programme shall pursue its objectives in a manner that ensures a high level of transparency and democratic accountability in the allocation, implementation and, where this is considered appropriate, in the reallocation of Union funds.

Article 5 – paragraph 1 a (new): 1a. The allocation and implementation of the external assigned revenue as referred to in paragraph 1 of this Article shall be monitored and the Commission shall periodically inform the European Parliament, the Council and the European Court of Auditors about the findings of such monitoring.

Article 5 – paragraph 2 a (new): 2a. Additional contributions to the programme, whether financial or non-financial, shall be implemented in accordance with the internal control framework and the principles of sound financial management laid down in Regulation (EU, Euratom) 2024/2509. They shall be subject to monitoring and reporting in accordance with Article 11b of this Regulation and shall be duly reflected in the evaluations carried out pursuant to Article 11c of this Regulation.

Article 9 – paragraph 1: 1. Actions implemented to attain the objectives set out in Article 3, including the following, shall be eligible for funding: / (a) meetings and similar ad hoc events; / (b) project-based structured collaboration; / (c) IT capacity-building actions, in particular the development and operation of European electronic systems; / (d) human competency and capacity-building actions; / (e) support actions including: / (i) studies and other relevant written material; / (ii) innovation activities, in particular proof-of-concepts, pilot projects and prototyping initiatives; / (iii) jointly developed communication actions; / (iv) any other relevant actions provided for in the work programmes referred to in Article 11 which are necessary for attaining or are in support of the objectives set out in Article 3.

Article 9 – paragraph 1 a (new): 1a. Actions referred to in paragraph 1 shall cover the following priority topics: / (a) the effective exchange of information and the development of usable formats taking into account initiatives at international level, including OECD standards for data; / (b) removing obstacles to cross-border cooperation; / (c) combating cross-border VAT and excise frauds; / (d) exchange of best practices on recovery of taxes, including taxes not paid and support for administrative cooperation, including the effective implementation, application and enforcement of provisions laid down in Directive 2011/16/EU (“DAC”), as amended, in particular as regards automatic exchange of information and risk assessment; / (e) supporting the implementation of Council Directive (EU) 2025/50 on faster and safer relief of excess withholding taxes (FASTER); / (f) supporting the implementation of rules adopted under the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS), including those laid down in Council Directive (EU) 2022/2523; / (g) supporting the consistent and effective implementation of the measures introduced under the VAT in the Digital Age (“ViDA”) package, including digital reporting requirements, electronic invoices, and the VAT treatment of the platform economy, with a view to enhancing tax compliance, reducing administrative burden and combating fraud; / (h) Union-level digital solutions through the implementation of unified national IT tools, the deployment of common or i…

Article 11 – paragraph 1 a (new): The Commission shall adopt implementing acts establishing the work programmes. Those implementing acts shall be adopted in accordance with the examination procedure as referred to in Article 11a(2).

Article 11 – paragraph 1 b (new): Prior to their adoption, the Commission shall transmit the draft work programmes simultaneously to the European Parliament and to the Council, and ensure that stakeholders are consulted throughout the development process. The draft work programmes shall clearly indicate the prioritisation choices, allocated budget, expected trajectories and key milestones for implementation. They shall demonstrate that the future actions foreseen under the programme generate Union added value and are aligned with Union-wide policy priorities.

Article 11 – paragraph 1 c (new): When preparing the work programmes, the Commission shall take into account the need to ensure user-friendly digital solutions and interoperability of digital systems in order to avoid duplication of reporting requirements and to better achieve the specific objectives referred to in Article 3(2).

Article 11 a (new): Article 11a / Committee procedure / 1. The Commission shall be assisted by a committee. That committee shall be a committee within the meaning of Regulation (EU) No 182/2011. / 2. The committee shall, where appropriate, convene in configurations reflecting the specific objectives of the programme. / 3. Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.

Article 11 b (new): Article 11b / Monitoring and Reporting / 1. The Commission shall monitor the implementation of the programme and report on its performance and progress towards achieving the specific objectives set out in Article 3. / 2. Performance reporting shall be based on the indicators established in accordance with Regulation (EU) .../...1a+ and any programme-specific indicators defined in this Regulation. / 3. The performance reporting system shall ensure that data for monitoring the implementation and the results of the programme are collected efficiently, effectively and in a timely manner. To that end, proportionate reporting requirements shall be imposed on recipients of Union funds. / 4. Priorities set out in the Annex to this Regulation implementing the specific objectives referred to in point (g) of Article 3(2) of this Regulation shall be implemented in accordance with Articles 13, 14 and 17 of Regulation (EC) No 223/2009. / 1a Regulation (EU) .../... of ... establishing a budget expenditure tracking and performance framework and other horizontal rules for the Union programmes and activities (OJ...). / + OJ: Please insert in the text the number of the Regulation contained in document 2025/0545(COD), and insert the number, date, title and OJ reference of that Regulation in the footnote.

Article 11 c (new): Article 11c / Evaluation / 1. Evaluations of the programme shall be carried out in a timely manner to feed into the decision-making process and improve the quality of implementation. The Commission shall make those evaluations publicly available. / 2. The Commission shall carry out an interim evaluation of the programme once sufficient information on its implementation becomes available, but no later than three years after the start of the programme implementation. The interim evaluation shall assess in particular: / (a) the effectiveness, efficiency, relevance, coherence and Union added value of the programme; / (b) progress towards the achievement of its objectives; / (c) the continued relevance of the priorities and implementation arrangements. / 3. In view of the mid-term review of the Multiannual Financial Framework (MFF), the interim evaluation shall be accompanied by a set of recommendations based on the evaluations carried out until then with the aim of improving efficiency and effectiveness. Where appropriate, those recommendations shall inform any proposal for a revision of the MFF and shall be implemented during the second half of the period referred to in Article 1. / 4. At the end of the implementation period, and no later than one year after the end of the period referred to in Article 1, the Commission shall carry out a final evaluation of the programme. The final evaluation shall also be accompanied by a set of recommendations to be implemented in the next MFF…