On the implementation and streamlining of EU internal market rules to strengthen the single market

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

on the implementation and streamlining of EU internal market rules to strengthen the single market

(2025/2009(INI))

The European Parliament,

– having regard to the Commission communication of 11 February 2025 entitled ‘Commission work programme 2025 – Moving forward together: A Bolder, Simpler, Faster Union’ (COM(2025)0045),

– having regard to the Political Guidelines for the 2024-2029 Commission term, presented by the President-elect of the Commission on 18 July 2024,

– having regard to the Commission communication of 11 February 2025 entitled ‘A simpler and faster Europe: Communication on implementation and simplification’ (COM(2025)0047),

– having regard to the Commission communication of 29 January 2025 entitled ‘A Competitiveness Compass for the EU’ (COM(2025)0030),

– having regard to the Commission communication of 29 January 2025 entitled ‘The 2025 Annual Single Market and Competitiveness Report’ (COM(2025)0026),

– having regard to the report by Mario Draghi of 9 September 2024 entitled ‘The future of European competitiveness’,

– having regard to the report by Enrico Letta of 10 April 2024 entitled ‘Much more than a market’,

– having regard to the report by Sauli Niinistö of 30 October 2024 entitled ‘Safer Together – Strengthening Europe’s Civilian and Military Preparedness and Readiness’,

– having regard to its resolution of 18 January 2023 on the 30th anniversary of the single market: celebrating achievements and looking towards future developments,

– having regard to Rule 55 of its Rules of Procedure,

– having regard to the report of the Committee on the Internal Market and Consumer Protection (A10-0151/2025),

A. whereas the EU is one of the largest economic blocs in the world, with a population of around 450 million people; whereas ensuring a competitive, fit-for-purpose and simplified regulatory environment is essential for strengthening the EU’s global position, fostering long-term growth, consumer confidence and protection, and innovation, and completing the twin transition;

B. whereas the Commission has set targets to reduce administrative costs by 25 % for all companies and 35 % for small and medium-sized enterprises (SMEs) by 2029; whereas the Commission communication entitled ‘A simpler and faster Europe’ underlines the need to deliver fast and visible improvements through smarter regulation, more effective implementation and better stakeholder engagement; whereas such efforts should be designed to benefit businesses, consumers and society at large by enhancing market access, reducing unnecessary burdens and ensuring a fair level playing field, while also upholding the EU’s core policy objectives and high social and environmental standards;

C. whereas the Draghi and Letta reports have identified internal market fragmentation, regulatory complexities and the inconsistent implementation of EU rules as major obstacles to the competitiveness of the EU single market; whereas according to the Draghi report, fostering a more stable and predictable regulatory environment, with a focus on necessary and proportionate legislative action, could help reinforce the EU’s competitiveness;

D. whereas the Niinistö report’s observations on simplifying and strengthening the EU’s defence industry highlight the strategic need to streamline regulations in key sectors to reduce fragmentation, accelerate public procurement and improve delivery to support the defence industries and enable Member States to meet essential defence spending targets and foster EU security and competitiveness;

E. whereas the 2025 Annual Single Market and Competitiveness Report and the Single Market and Competitiveness Scoreboard provide critical information on the current state of the single market, business sentiment and sectoral competitiveness; whereas the services sector remains less integrated than the goods sector; whereas the lack of harmonisation continues to hinder the provision of cross-border services, especially by SMEs; whereas recent statistics indicate that permitting times for opening and operating a business in the EU remain significantly longer than in competing regions, creating barriers to investment and innovation;

F. whereas regulatory fragmentation, complexity, overlaps and inconsistent implementation of EU internal market rules create unjustified barriers and unnecessary administrative burdens that disproportionally impact SMEs, small mid-caps and start-ups, representing 99 % of EU businesses, limiting their capacity to innovate, invest, scale-up, compete effectively and engage in cross-border activities within the single market and on global markets; whereas the SME test and better implementation and simplification, where necessary and justified, of EU rules are essential to ensure proportionality in the legal framework; whereas, as highlighted in the Draghi report, the EU’s competitiveness gap is also driven by the underperformance of large firms and whereas successful companies in the internal market, that also capture value from global markets, are vital for creating prosperity for the EU and its citizens;

G. whereas robust enforcement of single market rules, including through swifter and effective infringement proceedings, should be considered essential to ensure fair competition and business confidence, and to protect consumers from the consequences of market fragmentation and reduced choice; whereas efforts to improve, streamline and simplify the EU’s legislative framework should also focus on enhancing quality, clarity and coherence, on reducing fragmentation in the implementation of EU rules, as well as ensuring that the legislation is easily understandable for authorities and all stakeholders;

H. whereas the Competitiveness Compass and the Commission’s work programme 2025 set out ambitious policy objectives aimed at reinforcing the resilience of the single market, reducing administrative burdens, and aligning the regulatory framework with global best practices; whereas it is important to further link the EU’s industrial strategy to the single market strategy to strengthen the competitiveness of the EU economy, including by supporting the development and uptake of clean and strategic technologies;

I. whereas in efforts to simplify the regulatory environment in the EU’s internal market, the views of businesses, trade unions, consumers, civil society actors, academia and other concerned stakeholders should be taken into account to ensure that EU policies support economic growth and quality jobs and create a positive environment for private investment and innovation and for reaching policy goals such as sustainability, digitalisation and consumer protection by means of comprehensive, transparent and inclusive public consultations, with particular consideration given to the specific needs and perspectives of SMEs and start-ups, as well as other stakeholders with limited capacity, ensuring that simplification efforts do not penalise early movers or remove incentives for innovation-led businesses;

J. whereas unjustified national barriers to the free movement of goods and services, undermine the functioning of the single market and should therefore be addressed and prevented; whereas the International Monetary Fund has estimated that internal market barriers in the EU are equivalent to a 45 % tariff on manufacturing and a 110 % tariff on services; whereas such fragmentation weakens competition, hinders productivity and growth, and disproportionately affects SMEs;

K. whereas the impact of territorial supply constraints (TSCs) on the single market, SMEs and EU citizens’ consumer purchasing power is significant as, according to the Commission, TSCs cost EU consumers more than EUR 14 billion a year;

Strengthening the single market to boost the EU’s competitiveness and global influence

1. Underlines that the EU is falling behind in terms of global competitiveness, particularly in certain sectors; recognises that shortcomings in implementation, regulatory fragmentation and unnecessary administrative burdens are some of the main factors in the EU lagging behind in investment, innovation, job creation and business opportunities; emphasises that the promotion, streamlining and simplification of rules and the proper and timely implementation, as well as the effective enforcement, of common rules strengthen the single market, thereby boosting competitiveness, economic prosperity, employment, skills development, high quality jobs, high environmental standards and innovation;

2. Recognises that in order to secure the EU’s prosperity, it is necessary to improve regulatory coherence and reduce unnecessary administrative burdens on businesses – specifically smaller businesses and start-ups; insists, therefore, that barriers that currently hinder growth, job creation and investment must be removed and that resources should be directed towards encouraging innovation and fostering growth while ensuring a level playing field based on high social and environmental standards; underlines the need to mobilise private investment and stresses that particular attention should be paid to reducing compliance costs for SMEs through digital tools and targeted derogations; stresses that tailored provisions for SMEs must go hand in hand with reforms addressing the persistent barriers faced by companies in the scale-up phase, while also enabling larger companies to operate and compete across borders and internationally;

3. Emphasises that increased harmonisation, streamlined processes and the correct implementation, effective application, compliance, monitoring and enforcement of EU laws are vital for the proper functioning of the single market and the achievement of crucial EU policy goals; welcomes the Commission’s objectives to boost competitiveness, innovation and productivity through the simplification, streamlining and improved implementation and enforcement of EU rules; calls on the Commission to act upon the recommendations contained in the Draghi, Letta and Niinistö reports with concrete measures and clear timelines;

Streamlined rules, better implementation and robust enforcement for a predictable and competitive business environment

4. Underlines that regulatory streamlining and simplification are aimed at facilitating compliance processes, while upholding the EU’s core policy objectives, ensuring that social and environmental standards, as well as digital rights and consumer protection, are not compromised, and ensuring a stable and predictable regulatory environment for businesses that provides legal clarity and certainty for all; underlines that competitiveness and innovation, especially in the context of the current cost-of-living crisis, must deliver outcomes that benefit consumers; stresses that simplification should also reinforce the EU’s long-term objectives, including the digitalisation of the economy, the green transition and consumer protection, while ensuring technology neutrality;

5. Considers that a well-functioning single market, in which rules are implemented and enforced in a correct, coherent and effective way, is a shared responsibility of the EU institutions and the Member States; stresses that gold-plating of EU directives and fragmented enforcement of EU rules remain an obstacle for the single market, disproportionately burdening SMEs and start-ups; demands that the Commission ensure that EU rules are properly enforced across all of the Member States in a harmonised manner in order to address cross-border barriers; urges the Member States, therefore, to address gold-plating and to ensure that national implementing measures are published transparently and in a timely manner and to avoid inconsistent implementation of EU laws, while recognising the right for Member States to maintain or introduce national measures under the conditions provided for in the Treaties; calls for strengthened cooperation among existing authorities from different Member States and between national and EU regulatory authorities; encourages the Commission to support Member States in achieving more harmonised implementation of EU law by further facilitating structured exchanges and mutual learning, including through the organisation of transposition workshops and the development and use of comparative tools and practices;

6. Asks the Commission to ensure that current and future legislation remains proportionate and does not add unnecessary burdens for businesses, while making sure it achieves its objectives, and to include in its relevant legislative initiatives an early review clause, without increasing administrative burdens in the process; believes that review clauses, beyond the overall effectiveness of legislation, should serve to specifically assess the impact of legislation on EU competitiveness and should be used to evaluate the need for revision of those relevant legislative acts that unnecessarily hamper competitiveness; recommends that such reviews also assess the digital readiness of legislation and its adaptability to innovation; urges the Commission to establish and apply a clear methodology and a simple baseline for burden reduction and for measuring and monitoring progress towards the established targets, enabling effective actions and accountability; recognises that achieving meaningful reductions in administrative burdens is a shared responsibility between the EU institutions and the Member States, and must be pursued while fully upholding the EU’s core policy objectives; calls on the co-legislators to ensure that EU legislation is targeted, proportionate and fit for purpose and that the better regulation principles are respected in all stages of the policy cycle;

7. Urges the Commission to prepare high-quality impact assessments, which are an integral part of EU lawmaking and are important to ensure sound legal acts, of all legislative proposals, including delegated and implementing acts; underlines that the impact assessments should account for the cumulative effects of regulations and assess the interoperability between new and current rules, particularly concerning reporting requirements; insists that all impact assessments include a competitiveness check, specifically assessing the impact on SMEs, start-ups and midcaps, as well as on high-growth emerging technologies; emphasises that the competitiveness check should be systematically applied to all relevant legislative proposals, also considering their cross-sectoral impact and the impact of national spillover effects, and its findings should be taken into account, as also outlined in the EU Competitiveness Compass; considers that the Regulatory Scrutiny Board has an important role in providing quality assurance of Commission impact assessments, fitness checks and major evaluations, and stresses that it must act in a transparent manner and must have the means and the independence to carry out impartial, rigorous and high-quality scrutiny of all Commission impact assessments and legislative proposals and to raise concerns in the case of missing impact assessments; recommends strengthening the Board’s mandate and reinforcing its capacity, through adequate resourcing, to enable it to fully and effectively perform its tasks;

8. Calls for impact assessments to be carried out on substantial amendments proposed by the Parliament and the Council to the Commission’s proposals, as already agreed by the co-legislators in 2016, when appropriate and necessary for the legislative process, also considering the timeline of the lawmaking process; calls for effective enforcement of the provisions of the Interinstitutional Agreement on Better Law-Making and suggests further developing and using a methodology for impact assessments and competitiveness checks for the Commission, the European Parliament, the Council and the Member States; underscores that an adequate impact assessment should include potential short- and long-term costs and benefits, assessing the economic, environmental and social impacts in an integrated and balanced way and using both qualitative and quantitative analyses;

9. Considers that it is vital to avoid overlaps and to address unclear definitions and inconsistencies between various legal acts, especially concerning single market legislation covering goods, services and digital technologies, while bearing in mind their respective specificities, in order to enhance legal clarity and efficiency; urges the Commission to prioritise evaluations in these areas, with the aim of ensuring a predictable and coherent legal framework that enables businesses to engage in long-term planning and investment; stresses that the effective implementation, enforcement and uniform application of the current legal framework must be prioritised before new legislation is proposed;

10. Urges the Commission to ensure a more structured, transparent and inclusive stakeholder consultation process, including a review of the expert groups system; calls for measures to strengthen SME and start-up representation and for consultations to be adapted to the needs of SMEs and other stakeholders with limited capacities by allowing sufficient response time and improving accessibility to ensure inclusive and well-informed decision-making processes and to improve the quality of single market rules; emphasises that strengthening stakeholder engagement, including adequate geographical representation, is essential for deepening the single market, ensuring its effective functioning and reflecting its diversity; further underscores the crucial role of civil society in the decision-making process, which ensures a plurality of views and a fair and balanced representation; supports the establishment of regular implementation dialogues, including with social partners;

11. Calls on the Commission to develop a mechanism to set clear deadlines for the publication of guidelines and enforcement measures before a regulation takes effect in order to avoid regulatory uncertainty and implementation delays; insists that such guidelines also be prepared in an inclusive and balanced manner and serve as a tool to facilitate compliance rather than becoming an additional burden; stresses, furthermore, that they should be concise and clear, particularly for SMEs; demands that the use of level 2 legislation, such as delegated and implementing acts, be limited to technical matters, provide clear timelines and sufficient notice periods for economic operators and be in line with the mandate set by the co-legislators;

12. Highlights the importance of start-ups and scale-ups in driving innovation and securing the EU’s future leadership in critical industries; urges the Commission and the co-legislators to ensure that future regulations are designed to support innovation and to always uphold high standards; suggests the inclusion of regulatory sandboxes in future regulations affecting innovative sectors, where relevant, with a particular focus on benefiting SMEs and start-ups; advocates the establishment of ‘EU innovation hubs’ across the Member States;

13. Welcomes the appointment of a Commissioner for Implementation and Simplification; calls for the Commissioner to have adequate resources and authority to ensure, in collaboration with the College of Commissioners, the proper implementation and enforcement of EU legislation and sector-specific simplification; urges all the Commissioners to systematically assess the streamlining and implementation needs within their respective policy areas and to work in close cooperation and coordination to ensure coherence and achieve tangible results on simplification and streamlining; calls on the Commission to continue putting forward proposals to simplify and streamline single market legislation, where necessary and justified by impact assessments; underlines that new simplification proposals should improve regulatory coherence, preserve legal predictability for companies and should not undermine agreed policy objectives;

14. Notes that while the Commission has improved the detection and rectification of EU law infringements, enforcing EU rules and rectifying infringements in the single market still takes too much time; calls on the Commission to uphold its role as a guardian of the Treaties by fully utilising its enforcement powers, including the initiation of infringement procedures, when necessary, to ensure the timely, consistent and effective enforcement of the single market rules, as well as by reviewing its infringement procedures to ensure swifter, more automatic and predictable responses; recommends expanding infringement procedures to address systemic violations of single market rules; stresses the need to tackle regulatory fragmentation, which undermines the level playing field and legal certainty, while acknowledging Member States’ discretion provided for under the Treaties to implement directives;

Unlocking the full potential of the single market

15. Encourages the Commission and the Member States to make use of the current compliance and cooperation toolkit more effectively and coherently; calls, in this regard, on the Commission to strengthen current enforcement and cooperation instruments, such as SOLVIT, product contact points and the Single Market Enforcement Taskforce, to tackle issues related to the functioning of the single market; encourages, furthermore, the Commission to perform an inventory of tools, mechanisms and processes used to develop legislative and non-legislative initiatives, and monitor and enforce compliance with EU legislation, with the objective of improving their coherence, eliminating duplications and consolidating and streamlining them, and, based on that inventory, to consider expanding current networks and tools; urges enforcement authorities and the competent bodies across the Member States to enhance cooperation and mutual support in order to address unjustified regulatory fragmentation and ensure more streamlined, fit-for-purpose and harmonised implementation of single market rules and expresses support for the creation of national-level coordination platforms to facilitate efficient and coherent implementation and transposition of EU rules;

16. Emphasises the crucial role of the free movement of services in unlocking economic potential, while noting that integration in this sector remains weaker than in the goods sector, with an insufficient cross-border dimension of services in the single market; stresses, therefore, the need to ensure the consistent application of the Services Directive, whose implementation has only partially succeeded in achieving its intended goal owing to persisting unjustified barriers, which are particularly burdensome for SMEs and which take various forms and limit the ability to provide services across borders; notes the important role of the services sectors in the recently published single market strategy; calls for new initiatives and targeted and effective measures in key sectors for the single market which address the persisting unjustified barriers and enhance market integration without compromising on social standards, while also maintaining regulatory coherence and preventing the fragmentation of single market rules;

17. Regrets the insufficient use of the notification procedure under the Services Directive; calls on the Member States to ensure the systematic, timely and transparent application of the notification procedures under the Services Directive and the Single Market Transparency Directive;

18. Calls on the Commission to propose efficient legislative and non-legislative instruments to prevent new single market barriers when necessary and justified;

19. Calls on the Commission to explore different methods to tackle territorial supply constraints, including non-legally required restrictions such as disproportionate language requirements for product labelling, as they constitute persistent barriers that decrease competition and impact the cost of living;

20. Notes that simplifying administrative procedures, such as licensing and certification, and streamlining compliance processes is essential in order to reduce costs and legal uncertainties, particularly for SMEs; highlights that streamlined processes would enable SMEs to operate more effectively within the single market;

21. Notes that inconsistency in the implementation, enforcement and coordination of EU rules hampers the effective functioning of the single market and could have negative effects on the free movement of workers and professionals; underlines that administrative obstacles and inconsistent recognition of qualifications risk increasing labour and skills shortages and weakening the EU’s competitiveness; urges the Commission to continue evaluating the application of the Professional Qualifications Directive across Member States and identify measures to address inconsistencies in recognition processes; highlights the need for streamlined automatic procedures and fast-track mechanisms to facilitate the recognition of professional qualifications, particularly in sectors facing labour shortages; calls on the Commission to ensure that the single market rules for the free movement of workers respect the current social standards in the Member States while stressing the importance of removing unjustified barriers; strongly supports the digitalisation of the A1 form, required under Regulation 883/204, throughout all Member States to streamline procedures for cross-border provision of services;

22. Considers that the single market plays a vital role in times of crisis if Member States act in a coordinated way; considers, in this respect, that the recently adopted Internal Market Emergency and Resilience Act (IMERA) will be important to ensure such coordination so as to prevent shortages and ensure the smooth functioning of the single market, including the free movement of essential goods and services throughout the EU;

23. Recalls the importance of common standards for the functioning of the single market; stresses the importance of safeguarding the EU standardisation system, while improving it where issues have been identified, and maintaining its operational integrity;

24. Urges the Commission to identify and reduce unnecessary reporting burdens by implementing targeted measures, such as extending reporting intervals, eliminating redundant obligations and ensuring proportionality in sector-specific requirements, without compromising the policy objectives, which the requirements seek to implement; reiterates the need to ensure that reporting obligations stemming from various pieces of EU legislation are coherent; stresses the importance of the ‘think small first’ principle, of tailored approaches for SMEs and start-ups, and of fostering a digital business environment, enabled by trusted digital identities, secure data exchanges and legally recognised digital notifications; emphasises the importance of upholding the ‘once-only’ principle in order to streamline compliance procedures and reiterates the importance of harmonising reporting formats and digital interfaces across Member States where feasible; stresses that justified and proportionate reporting requirements are necessary to ensure proper monitoring and compliance with adopted rules, thereby ensuring effective enforcement and improved data collection to guide future policy initiatives;

25. Emphasises that the new legislative framework aims to improve the internal market for goods and strengthen the conditions for placing a wide range of products on the EU market; calls on the Commission to revise it with a view to making it future-proof, ensuring its adaptability to evolving geopolitical challenges and to the requirements of the digital and green transitions, thus enhancing the overall competitiveness of the EU single market;

26. Acknowledges the Commission’s intention to propose a new EU-wide legal regime, the ‘28th legal regime’, aimed at creating a business environment that supports the growth and upscaling of SMEs, including smaller and innovative companies, fostering EU global competitiveness; notes that the new regime could facilitate the development and deployment of the upcoming European Business Wallet;

Embracing digitalisation and artificial intelligence for growth and governance

27. Welcomes the Commission’s planned fitness check on the legislative acquis in the digital policy area; demands that the Commission assesses and clarifies the legislative framework and the interplay between current EU legal acts, such as the Digital Services Act, the General Data Protection Regulation, the Artificial Intelligence Act, the Regulation on the Transparency and Targeting of Political Advertising, the Product Liability Directive, e-commerce and cybersecurity rules, and between these acts and future legislative initiatives before their adoption by the Commission; insists that regulators, networks of national authorities and stakeholders be involved in this process and stresses that the results of this mapping exercise should serve to identify potential overlapping, contradictory provisions and potential enforcement conflicts and address these shortcomings; in addition, it should serve to improve coordination between enforcement authorities across the Member States and the Commission’s internal services and to improve the ability of businesses to invest and innovate in the EU; insists that the Commission ensure that all laws adopted and enforced in the 2019-2024 Commission term are correctly and consistently implemented and applied across all of the Member States; calls on the Commission to include, where necessary and justified by impact assessments, proposals for simplification in the envisaged digital package, aimed at increasing coherency, legal clarity and predictability for all stakeholders, without undermining agreed policy objectives;

28. Notes the upcoming Commission report on the interplay between the Digital Services Act and other legal acts, and encourages the Commission to clarify through this report the way in which this regulation interacts with other legal acts, including how to address possible overlaps, in order to support the effective implementation and enforcement of the EU digital rulebook and to provide legal certainty to service providers, users, consumers and regulatory authorities;

29. Stresses that digital policy, especially in emerging technologies or in relation to highly complex technologies, should follow an iterative approach, also taking into account tools such as structured dialogue with businesses and other relevant stakeholders, co-regulation and regulatory sandboxes to ensure practical, proportionate and future-proof rules, designed with innovation in mind, while avoiding unintended consequences and assessing the impact of recently adopted legal acts before proposing new obligations; recalls the importance of common standards for the functioning of the digital single market; underlines the importance of EU leadership in the standardisation of digital technologies, as well as the critical importance of transatlantic and international cooperation, in this sphere, to ensure technological sovereignty and global competitiveness, in particular in emerging areas such as artificial intelligence and cloud services;

30. Recognises the potential of digitalisation and artificial intelligence as key tools for boosting the EU’s competitiveness, reducing administrative burdens, streamlining and automating administrative procedures, including reporting, authorisation, permitting and compliance requirements, as well as for facilitating market entry and assessing applicable legislations; stresses the need to promote the uptake of these key tools to enhance regulatory efficiency, support better implementation and monitoring of single market legislation; notes that the varying level of digitalisation for administrations in the Member States constitutes a cross-border barrier;

31. Believes that electronic tools and portals should be the standard for all reporting and administrative requirements and envisions their integration into a digital ‘one-stop shop’; calls on the Commission to explore the feasibility of such a digital ‘one-stop shop’ by expanding the Single Digital Gateway in order to facilitate a streamlined approach to accessing information, administrative procedures and assistance services for businesses and to offer more online services to both citizens and companies, particularly for SMEs, utilising digital public infrastructure such as the EU Digital Identity Wallets and the upcoming European Business Wallet, and ensuring consistency by streamlining such tools in all relevant legislative proposals;

32. Underlines the importance of interoperability to reduce administrative burdens, particularly the need to make reporting obligations coherent and easy to fulfil, and calls on the Commission to continue exploring ways to improve and digitalise reporting procedures to improve information sharing and compliance while not overburdening companies, including automated business-to-government reporting; welcomes the Once-Only Technical System as a key tool to enable automated cross-border data exchange and reduce duplicative reporting burdens for businesses; emphasises that any requirements for data sharing and reporting should be designed with digitalisation in mind, ensuring that data sharing and reporting requirements can be data-driven and automated;

33. Calls on the Commission to streamline current IT tools available to economic operators and relevant national authorities for notifying and communicating relevant information such as information on accidents, corrective measures and other data on the safety of products in the single market; highlights that a single IT tool should be developed in order to reduce time and costs and to increase compliance and enforcement;

34. Calls on the Commission to improve the development of compliance tools such as codes of practice, ensuring that they remain within the limits of underlying legal obligations, are practically implementable for companies of all sizes, and are developed through meaningful and timely stakeholder consultations;

35. Stresses the need for modern and robust digital infrastructure to facilitate the EU’s ambitions in digitalisation and frontier technologies; calls for continued investment in developing ‘digital highways’ that include cross-border high-capacity broadband networks, 5G corridors, secure cloud and edge infrastructure, as well as interoperable digital public services;

36. Calls for the harmonised rollout of digital labelling and the Digital Product Passport in EU product legislation; stresses their potential to lower compliance burdens, enhance consumer access to accurate information, and support multilingual interoperability while preserving the possibility for consumers’ products to be accompanied by essential information related to safety in paper format; urges the Commission to facilitate the development of harmonised standards and detailed guidance to avoid fragmentation and facilitate SME participation in cross-border trade;

Improving consumer protection in the digital age

37. Highlights that the streamlining of consumer protection legislation should not lower the current high standard of consumer protection across the EU; acknowledges the significant progress made in strengthening consumer protection rules and adapting them to new technological and sustainability realities; underlines the need to further strengthen consumer protection, such as in the area of e-commerce with regard to false or misleading product information; emphasises that effective enforcement and a thorough analysis of the consumer protection laws and their impact is important; insists that new legislative initiatives should focus on closing gaps in current legislation or address new substantiated challenges that are not tackled within the current legal framework;

38. Highlights that the rapid expansion of digital platforms and e-commerce has introduced new market dynamics and has created advanced opportunities and challenges and risks for users; acknowledges that the Digital Markets Act and the Digital Services Act constitute important legislative instruments to ensure fair competition, contestability and fairness in digital platforms, while also fostering a safer, trustful and more transparent digital environment and consumer protection in the digital economy, and calls for proper enforcement of this technology legislation to ensure genuine, autonomous and informed consumer choice, protection and fair competition;

39. Reaffirms that consumer protection laws should remain mainly principle-based and coherent across various legal instruments, but should also allow for more specific provisions when necessary for legal certainty for both businesses and consumers; stresses the importance of avoiding excessive or redundant information obligations, which may impose unnecessary burdens on businesses without enhancing consumer understanding; calls for proportionate and purpose-driven consumer information obligations; notes that, according to the 2025 Consumer Condition Scoreboard, most consumers are not aware of their rights; calls on the Commission and the Member States to develop campaigns to increase consumer awareness;

40. Urges the Commission to use digital tools to enhance transparency and consumer trust in cross-border transactions; calls for effective enforcement of consumer redress mechanisms, including those concerning collective redress, and the full enforcement of consumer rights in the EU, including through a revision of the Consumer Protection Cooperation Regulation, focusing on improving cross-border enforcement; underlines, furthermore, the importance of the revision of the Consumer Protection Cooperation Regulation to improve cross-border enforcement and to address unfair behaviour, particularly by non-EU traders; notes the importance of strengthening cooperation among Member States’ various competent authorities, including through coordinated joint-enforcement projects and streamlining the exchange of information;

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41. Instructs its President to forward this resolution to the Council and the Commission.

EXPLANATORY STATEMENT

With 450 million inhabitants in 27 Member States, the EU is one of the world’s largest economic blocs. We meet all the prerequisites to compete well globally, but we have a single market whose full potential is not being exploited. That means that we are falling short of the level of competitiveness that we could achieve and the economic growth that we could create. That is why we need tangible action to bolster the single market and cut red tape for our businesses, especially for small and medium-sized enterprises (SMEs) – action that will enable Europe to attract investment and innovation, which in turn will bring about more jobs, more tax revenue for Member States and thus also greater welfare for all of us in the EU.

In their reports, Mario Draghi and Enrico Letta have proposed solutions to boost Europe’s competitiveness and the single market. Since those reports were submitted to the Commission, there have been further changes in global circumstances. We are now living in an age of great uncertainty. Russia’s brutal war of aggression against Ukraine is continuing. Ukraine’s fight for freedom and independence is also about the future of all of us in Europe. Together with the US, we have given Ukraine support in the form of both defence-related equipment and humanitarian aid since the Russian aggression began. It is now increasingly clear that Europe can no longer count on wholehearted support for Ukraine from the US.

US policy in relation to Ukraine has changed radically since Donald Trump became President in January 2025. The EU and Europe must now take greater responsibility for supporting Ukraine and for their own defence and security. The security policy changes we are now witnessing will have far-reaching consequences, both economically and geopolitically, which is why Europe needs to take a firm grip on its own future. In addition to our defence, we need to boost our strategic autonomy and streamline and bolster our single market, thereby generating economic growth. That is also the way to boost our competitiveness vis-à-vis countries such as China and the US.

What is at stake here, ultimately, is the defence of liberal democracy, the rule of law and human rights – the defence of our way of life, our fundamental values, freedom, equality and the free movement of people, goods and services. For that reason, too, action needs to be taken to bolster Europe’s single market, our competitiveness and thus our economy.

We need to make the most of our strengths and address the single market’s shortcomings. The message from the business community and our firms is clear. Red tape must be cut for businesses. It weakens competitiveness and takes resources away from growth-creating activities. Several important reports have been written recently; they contain a host of tangible proposals. Where Draghi’s report focuses on boosting competitiveness, and Letta’s the single market, Finland’s former President Sauli Niinistö argues in favour of a preparedness union and points to the need to simplify a number of rules, also with a view to strengthening Europe’s security.

The European Parliament, for its part, now ought to highlight the need for action and reforms that strengthen the single market, cut back on red tape and support uniform ways of implementing existing EU legislation in our Member States.

To strengthen Europe’s global position, promote investment, innovation and economic growth, but also consumer confidence, we need a competitive, clear and understandable regulatory framework that treats our businesses and consumers equally, regardless of the EU country where people live and work. Complicated rules, overlapping reporting obligations and inconsistencies in implementing jointly agreed directives and regulations across Member States mean that we are not exploiting our single market’s full potential. This also means that we are missing out on investment, jobs and therefore economic growth. That is why we need action that brings about change and growth and makes it easier to operate as an entrepreneur in Europe, with a special focus on small businesses and start-ups. Legislation that makes investment more difficult, lengthens licensing processes and hampers EU competitiveness should be avoided, with due regard for the subsidiarity principle. This own-initiative report also notes the discussion surrounding a possible new EU-wide legal status, the ‘28th regime’, to make it easier for small, innovative businesses to grow.

While simplifying processes and cutting red tape, it is important that we maintain our key policy objectives, such as climate targets and strong consumer protection. We will not compromise on them. For businesses, the aim is also predictability. The more uncertainties there are about policy objectives and possible rapid changes, the more difficult it is for businesses to venture to take important investment decisions. That is why policy needs to be framed for the long term and the rulebook needs to be clear, understandable and easy to follow. We must make it easier for our businesses to develop, invest and create growth, otherwise we in Europe risk falling behind on the global competitive stage.

The Commission is now called on to set specific timetables for action to cut red tape and administrative burdens for businesses, and to put forward specific roadmaps for the future. The Commission ought to keep to its targets and take decisive action to cut red tape by 25% for larger firms and 35% for SMEs. This own-initiative report welcomes the fact that the Commission now has a Commissioner with responsibility for simplification. However, the Commissioner needs sufficient resources and tools to carry out his remit and coordinate with the relevant directorates and departments.

Digitalisation and artificial intelligence (AI) as drivers of growth and as administrative tools

Digitalisation and AI are here to stay. The EU needs to encourage Member States to invest in digital infrastructure so as to facilitate the goal of becoming a leader in digitalisation, quantum computing, AI and cutting-edge technologies.

This also involves the tools we provide businesses with. This own-initiative report notes the considerable potential of digitalisation and AI as key tools for streamlining administrative processes, including reporting and licensing processes. It is equally important that businesses should have access to funding. The Capital Markets Union can also facilitate that.

After the Commission’s planned review of digital policy legislation, the need to lessen unnecessary burdens on businesses has to be addressed. Because of the volume of new digital policy legislation adopted during the last term of office, it is important that the Commission should also clarify how the various laws relate to each other. A single eGovernment solution, also using AI, would make things easier for businesses across the EU. For smaller firms, it would be particularly welcome if there were a single digital platform – a one-stop shop – where they could find all relevant information on applicable rules, manage reporting and all other administrative requirements, and obtain instructions on how to apply for different authorisations, etc. With regard to reporting, it must be sufficient for a firm to submit information only once. Similarly, both the e-wallet for businesses and e-ID for citizens should now be implemented quickly in all Member States.

This also concerns the availability of digital services across the single market. For instance, progress ought to be made on geoblocking audiovisual content in the single market so that streaming services would be more accessible across the EU, without jeopardising the operating conditions of public service broadcasters. That would be of great importance for language minorities throughout the EU.

The voice of business must be heard in the legislative process

Business views need to be taken into account more effectively, and the Commission is called on to make use of regulatory sandboxes so as to allow businesses to test at an early stage how proposed rules might work in practice, particularly in innovative sectors. Regulation that hampers growth should be avoided. Special attention needs to be paid to cutting red tape for SMEs, which could be subject to lighter regulation than larger firms. Similarly, the Commission ought to promote the scaling-up of start-ups.

To ensure that the voice of business is better heard, expert groups’ work should also be reformed in line with the Draghi report in order to reduce overlapping and streamline the drafting of legislation. SMEs, too, should have a powerful voice.

Proper implementation is the cornerstone of the single market

There are 27 countries in the EU, each of which is responsible for implementing EU legislation. Clearly, as things stand, not all countries meet the requirements for implementation in all respects, which in turn brings about imbalances. Streamlined processes and proper implementation of EU law are therefore called for. The single market needs to be fair both to businesses and to consumers. Single-market rules must be uniformly implemented.

Much new legislation was adopted during the last term of office. Now, the focus needs to be on effective implementation and uniform application of existing legislation. Instruments to enforce compliance with single-market rules, such as SOLVIT and SMET, should be strengthened in line with the Draghi and Letta reports. Member States must also take responsibility for creating a powerful single market and avoid phenomena such as gold-plating.

New legislation requires impact assessments

In order to ascertain what the consequences of a proposed item of legislation will be, impact assessments are needed. Without proper impact assessments, situations may arise where legislation has consequences that the legislative authority did not intend. The regulatory framework today is complex; it is therefore crucial to take various impacts into consideration as comprehensively as possible at an early stage in the legislative process.

It is crucial to consider the cumulative effects of different items of legislation; and it is crucial that new and existing rules should operate in a complementary manner. Assessments ought also to include a competitiveness check, focusing in particular on the impact of the regulatory framework on SMEs and start-ups.

Similarly, better impact assessments need to be carried out on the amendments proposed by Parliament or the Council that may have a major impact on the legislation concerned. Nowadays, in practice, significant changes may be made during trilogues that are not subject to impact assessments. That, in turn, can produce unexpected consequences in practice which the legislative authority did not intend. At the same time, of course, it is important to safeguard the ability of individual MEPs to propose amendments. That is a fundamental democratic right. It is nonetheless also important – so as to maintain full confidence in the EU’s legislative process – that major proposals for amendments at the final stage of that process should also be subject to proper impact assessments.

Europe’s competitiveness and security are at issue

Enhanced competitiveness and greater security go hand in hand with a more powerful single market. We must therefore cut needless red tape so that our businesses can focus on the things that matter. That is the responsibility we all bear.

ANNEX: DECLARATION OF INPUT

Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur declares that she included in her report input on matters pertaining to the subject of the file that she 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 she 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.

INFORMATION ON ADOPTION IN COMMITTEE RESPONSIBLE

INFORMATION ON ADOPTION IN COMMITTEE RESPONSIBLE