EU Launches New Single Market Strategy: Economic Shield Against China and the US and Focus on Key Services

The European Commission today unveiled an ambitious and renewed strategy for the European Union's Single Market, a plan designed not only to eliminate persistent internal barriers that hinder the competitiveness of its companies, but also to strengthen the bloc's position in the face of the growing economic influence of giants such as China and the United States. This initiative seeks to modernize the European economy, with a particular emphasis on crucial service sectors and on digitalization as an operating standard.

The new roadmap, presented in Brussels, responds to a pressing need to adapt the EU's economic engine, which includes 26 million businesses and 450 million consumers, to a rapidly changing global landscape. According to the Commission, the Single Market has already contributed to an increase in EU Gross Domestic Product (GDP) of between 3% and 4% and has generated approximately 3.6 million jobs since its creation; this new strategy aims to double these achievements.

One of the fundamental pillars of this strategy is the boost to the services sector, which constitutes the largest part of the bloc's economy but whose cross-border trade has remained "stagnant." Specifically, it seeks to "strengthen" the construction, postal services, and telecommunications markets, sectors identified by their considerable economic impact and the strong presence of international competitors. To this end, Brussels will introduce a Construction Services Act and another Postal Services Act, in addition to promoting the liberalization of professional services currently subject to "unnecessary regulation."

The European Commission's Executive Vice-President for Industry, Stéphane Séjourné, encapsulated the philosophy behind this move with a powerful statement: "It is time for companies to Europeanize before they internationalize." This statement underscores a vision that goes beyond simple external competition; it suggests deep introspection and an effort to consolidate the bloc's internal strength as a basis for its global projection. The EU seems to recognize that its ability to compete effectively with China and the United States intrinsically depends on greater cohesion and efficiency within its own borders.

To achieve a "simpler, seamless and stronger" market, the Commission has identified ten main barriers that it intends to eliminate:

* Complicated business establishment and operations.

* Complex EU regulations.

* Lack of appropriation of regulations by Member States.

* Limited recognition of professional qualifications between countries.

* Lack of common standards in various areas.

* Fragmented regulations on packaging.

* Non-compliance of the product with regulations.

* Restrictive and divergent regulation of national services.

* Onerous regulations for the movement of workers in low-risk sectors.

* Unjustified territorial supply restrictions that result in high prices for consumers.

Overcoming these obstacles, according to the EU executive, will significantly improve the free movement of safe products, facilitate the cross-border provision of services, and dramatically simplify the establishment and operation of businesses throughout the Union.

The strategy is not limited to a defensive reaction to external powers, but represents a proactive attempt by the EU to redefine its internal cohesion and economic power. The focus on traditionally fragmented service sectors such as construction and postal services, along with the strategic telecommunications sector, is emerging as a complex but crucial battleground for the EU's true economic sovereignty. The "liberalization" of professional services could, however, encounter significant national resistance, testing the political will of member states beyond Brussels' directives. The very identification of "lack of Member State ownership" as a barrier underscores this inherent challenge.

Furthermore, digitalization as the "norm" and the announced reduction in the administrative burden for businesses—quantified at around €400 million thanks to a fourth deregulation package—are key enablers of this modernization. Measures such as allowing the digital submission of documents to comply with EU product legislation and the provision of product instructions in digital format instead of paper seek to streamline processes. However, the effective implementation of these measures across the 27 member states will determine whether the EU can truly compete in terms of agility with more centralized economies or more dynamic innovation ecosystems. This is, in essence, a structural modernization that goes beyond simple trade.

This new Single Market Strategy directly responds to a request from the European Council in April 2024 and is aligned with the conclusions of influential reports such as those by Enrico Letta and Mario Draghi, as well as the Commission's own 2025 Annual Report on the Single Market and Competitiveness. All of these documents have underscored the vital importance of a truly integrated single market to ensuring Europe's competitiveness and resilience in the 21st century.

The success of this ambitious strategy will ultimately depend on the collaboration and genuine commitment of each Member State to adopt and implement the necessary reforms, transforming Brussels' guidelines into a tangible reality that benefits businesses and citizens alike.

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