COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS The Single Market at 30
Date: 2023-03-16
Institutions: Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs, European Commission
Subjects: competitiveness, digital transformation, economic growth, free movement of capital, free movement of goods, free movement of persons, freedom to provide services, green economy, single market

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 16.3.2023  COM(2023) 162 final  COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS The Single Market at 30  
 
 
1.  INTRODUCTION 

This year the Single Market celebrates its 30th anniversary. The Single Market is one of the 
greatest  achievements  of  the  EU.  Since  its  creation  in  1993,  citizens  and  businesses  have 
benefitted  from  the  free  movement  of  people,  services,  goods  and  capital  to  an  extent  that 
exceeds even the most visionary expectations of three decades ago.  

Originally  conceived  as  an  area  of  free  trade  without  tariff  or  non-tariff  barriers  among  its 
members,  the  Single  Market  has  developed  into  much  more  than  that.  It  has  successfully 
become the world’s largest integrated single market area1, while remaining one of the most 
outward oriented. Yet  the Single Market  is  much more than a legal framework or indeed  a 
market: it is an area of freedom, progress, opportunity, growth,  shared prosperity, resilience 
and a means of geopolitical projection. 

In addition to looking back at the many achievements that we have come to take for granted 
in  our  everyday  lives,  it  is  important  to  acknowledge  that  the  Single  Market  is  a  valuable 
living asset that we must continuously preserve and improve. 

The Single Market must continue to adapt to new challenges2, as recognised, among others, 
by the European Parliament in its Resolution on the 30th anniversary of the Single Market3. A 
collective  effort  is  required  to  continue  maintaining  it,  deepening  it,  harnessing  its  full 
potential,  preserving  a  level  playing  field  both  internally  and  globally,  and  ensuring  it 
underpins  the  EU’s  prosperity  through  long-term  competitiveness  and  productivity,  as 
requested  by  the  European  Council4.  The  Single  Market  is  a  common  space  which  attracts 
investments  within  the  EU  and  from  outside  the  EU  by  having  a  predictable  and  simple 
regulatory framework. 

Joint  efforts  are  required  to  enforce  existing  rules,  remove  barriers  and  explore  areas  for 
further  integration  of  the  Single  Market.  The  potential  benefits  are  very  significant:  it  has 
been estimated that removing Member State-level barriers to the Single Market for goods and 
services alone could add EUR 713 billion to the economy by the end of 20295. 

1 Measured in purchasing power parity, IMF World Economic Outlook. 
2 Including demographic ones. 
3  European  Parliament  resolution  of  18.1.2023  on  the  30th  anniversary  of  the  Single  Market:  celebrating 
achievements and looking towards future developments, P9_TA(2023)0007. 
4 European Council conclusions, 9 February 2023. 
5 Mapping the Cost of Non-Europe 2019-24, Study of the European Parliamentary Research Service, 2019. 

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2.  THE  SINGLE  MARKET  AT  THE  HEART  OF  THE  EUROPEAN  PROJECT 

FOR 30 YEARS 

2.1. Improving lives of citizens and businesses, accompanying the green and digital 

transitions 

The  free  movement  of  people,  goods,  services  and  capital  gives  Europeans  access  to  the 
widest  possible  choice  of  products,  services,  experiences,  ideas,  cultures  and  languages. 
Everyday this benefits more than 440 million citizens across the continent. The Single Market 
is, above all, a means to enhance people’s well-being.  

The abolition of roaming surcharges lets us stay in touch with family and friends when we 
travel  around  Europe.  Consumer  products  and  food  circulating  in  the  Single  Market, 
whether  bought  online  or  offline,  have  become  safer,  and  dangerous  products  are  recalled 
from  the  market.  The  common  charger  for  electronic  devices  will  reduce  e-waste  and 
consumer inconvenience and bring savings of EUR 250 million to consumers each year. The 
Single European Transport Area allows travel and goods to be transported affordably within 
the  EU.  Strong  passenger  rights  mean  we  are  compensated  when  our  travel  plans  are 
disrupted. Businesses and citizens can make payments across borders just as easily as they do 
domestically. Consumers applying for credit can count on improved protection. 

The  Single  Market  also  makes  it  easier  to  live,  study,  work  and  retire  in  another  Member 
State.  The  Erasmus  programme  has  enabled  nearly  13  million  young  people  to  study  and 
work  abroad.  The  Single  Market  has  expanded  the  horizons  and  opportunities  of  European 
professionals who have their professional qualifications recognised more easily. Thanks to 
the coordination of social  security  rules, millions  of Europeans can continue to  enjoy their 
rights  to  pensions  and  healthcare  when  they  live  abroad,  and  rules  on  health  and  safety  at 
work ensure fair competition and high standards for all, wherever they work.6 

The Single Market is a powerful engine to  accelerate the green transition, in line with the 
European Green Deal.  Product standards set uniformly at EU level ensure environmental and 
safety  compliance,  as  well  as  respecting  energy  efficiency  requirements.  The  market-based 
approach of the EU Emissions Trading System (ETS) is bringing down emissions in a cost-
effective way, while the revenues it generates can support the transition to cleaner production 
and to stimulate innovation.  

An integrated EU energy market is the most cost-effective way to ensure sustainable, secure 
and  affordable  energy  supplies  to  EU  citizens.  Over  the  last  decade,  the  major  efforts 
undertaken  to  further  integrate  electricity  markets  in  Europe  have  delivered  significant 
benefits, estimated to  amount to  around EUR 34 billion a  year, for consumers, by enabling 
cross-border trade between Member States and improving security of supply across a larger 
geographical  area7.  In  the  context  of  frequent  supply  disruptions,  the  Single  Market  has 
helped  ensure  that  energy,  notably  gas,  flows  to  where  it  is  most  needed.  Regional 
cooperation and solidarity have been essential to guaranteeing the resilience of the EU energy 

6 This holistic role of the Single Market is acknowledged by the EP Resolution (see point 9). 
7 Agency for Cooperation of Energy Regulators: https://www.acer.europa.eu/events-and-
engagement/news/press-release-acer-publishes-its-final-assessment-eu-wholesale.  

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system. The TEN-E Regulation has contributed significantly to this robust security of supply 
by  interconnecting  Member  States’  energy  systems  through  Projects  of  Common  Interest 
(PCIs). At the same time, the recent energy crisis has highlighted a number of shortcomings 
to which the EU has had to respond. 

In the next years, the Single Market must evolve to meet citizens’ expectations for a human-
centric  digital  transition  and  for  markets  that  make  sustainable  choices  affordable  and 
attractive”.  The  Digital  Services  Act  will  ensure  that  online  businesses  can  operate  across 
Europe on the basis of a single set of directly applicable rules, and that citizens can safely use 
online  platforms  and  e-commerce  services  no  matter  where  they  are  in  the  EU,  protected 
from illegal content, disinformation and cyberbullying. The Digital Markets Act will ensure 
fair  and  contestable  markets  in  the  digital  sector  so  that  platforms  cannot  misuse  their 
gatekeeper  power  in  the  Single  Market.  Harmonised  rules,  in  areas  such  as  audio-visual 
media  and  copyright,  support  cultural  diversity  and  media  pluralism  in  the  digital  context. 
With the Data Governance Act, already adopted, and the Data Act, in advanced negotiations, 
the  EU  is  building  a  genuine  Single  Market  for  data,  opening  up  opportunities  for  all 
economic players and making Europe a global leader in the data-agile economy. And we are 
creating  a  Single  Market  of  cybersecurity,  including  cybersecurity  requirements  for  any 
connectable product, software or hardware. 

The  EU  has  developed  digital  tools  to  make  the  Single  Market  run  more  smoothly. 
During  the  pandemic,  the  Commission  quickly  developed  a  Digital  COVID  Certificate  to 
facilitate  freedom  of  movement,  by  enabling  EU  citizens  and  residents  to  easily  provide 
digital proof that they had either been vaccinated against COVID-19, received a negative test 
result or recovered. 

Digital  tools  reduce  administrative  burdens  and  create  transparency  for  citizens  and 
businesses. When they want to know more about their rights and opportunities, they can turn 
to  the  Your  Europe  portal,  a  one-stop  shop  for  information.  Those  seeking  advice  when 
Single Market  problems  arise can make use of  Your Europe Advice  and  SOLVIT, which 
helps businesses or individuals affected by breaches of EU law to resolve disputes and obtain 
out-of-court  redress,  enabling  them  to  overcome  barriers.  To  improve  the  business 
environment,  SOLVIT  will focus  its efforts on  helping  small  and medium-sized enterprises 
(SMEs) to make the best use of the opportunities of the Single Market. The Internal Market 
Information system (IMI)8, which connects thousands of public administrations, facilitates 
cross-border  administrative  exchanges  between  them  and  solves  problems.  It  has  been 
constantly  growing  over  the  years,  now  covering  19  policy  areas.9  Taken  together,  this 
creates a true ‘Single Market back office’, for  the benefit of businesses and administrations 
alike. 

The  once-only  technical  system  (OOTS)  will  ensure  that  when  a  business  or  citizen  has 
submitted a document once to a public administration, the document can be safely transferred 
to  other  public  administrations,  so  that  the  business  or  individual  can  complete  other 

8 Internal Market Information System https://ec.europa.eu/internal_market/imi-net/index_en.htm. 
9 Single Market Scoreboard 2022, IMI overall performance. 

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procedures without needing to re-submit it. All of these tools are accessible through the EU’s 
Single Digital Gateway. Furthermore, the European Digital Identity Wallet10 will provide 
citizens  and  businesses  with  standardised  documents  they  can  use  safely  to  identify 
themselves and key information across the EU, for example diplomas attesting professional 
qualifications or documents relating to healthcare and social security. Moreover, in pursuit of 
the EU Digital Decade11 ambition, the EU aims to provide all key public services online by 
2030.   

Graph 1: Single Market tools 

Source: European Commission 

2.2. Boosting the economy   

10 For more information, see European Digital Identity (europa.eu). 
11 For more information, see Decision on the 2030 policy Programme “Path to the Digital Decade”. 

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As the world’s largest integrated market, the Single Market has exceeded all expectations in 
macro-economic  terms.  Accounting  for  18%  of  global  GDP12,  it  is  a  springboard  for 
businesses to offer their goods and services to more than 440 million EU citizens across the 
continent.  It  is  home  to  23  million  businesses13  which  employ  nearly  128  million  people14. 
The Single Market  has brought  very  significant economic benefits, delivering  to  the EU  a 
GDP  that  is  up  to  9%  higher  in  the  long  run,  than  would  have  been  the  case  without  the 
Single  Market15.  This  integration  has  been,  and  continues  to  be,  a  fundamental  source  of 
growth and job creation16. Whereas total employment in the EU increased by 5.5% in 2000-
2014, the number of jobs reliant on cross-border services17 almost doubled in the same period 
(from 5.6 to 10.9 million)18. The level of trade between Member States in goods and services 
in  comparison  to  the  size  of  the  EU  economy  has  approximately  doubled  over  the  last  30 
years.  Researchers  suggest  that  economic  integration  in  Europe  is  more  advanced  from  a 
regulatory standpoint than, for example, in the United States.19  

Graph 2: Trade in goods and services within the Single Market (1993-2021) 

12 GDP at current prices. 
13 Excluding financial sector. 
14 Celebrating 30 years of EU Single Market 1993-2023, Eurostat : https://ec.europa.eu/eurostat/web/products-
eurostat-news/w/edn-20221206-1. 
This figure covers the 'non-financial business economy' (NACE Rev. 2 sections B to N and division 95 except 
section K) which includes: industry, construction, distributive trades, non-financial services. 
15  Discussion  Paper  094:  Quantifying  the  Economic  Effects  of  the  Single  Market  in  a  Structural  Macromodel 
(europa.eu), Jan in’t Veld, 2019. 
16  Source:  Danish  Ministry  of  Industry,  Business  and  Financial  Affairs:  The  Single  Market  accounts  for  56 
million jobs across the EU.  
17 Employees in companies which export services or provide the exporting sector with intermediate goods and 
services. 
18  Source:  “Cross  border  services  in  the  internal  market:  an  important  contribution  to  economic  and  social 
cohesion“,  Study  by  Manuel  Fritsch  and  Dr.  Roman  Bertenrath  (2019);  https://www.eesc.europa.eu/en/our-
work/publications-other-work/publications/cross-border-services-internal-market-important-contribution-
economic-and-social-cohesion. 
19 Source: Parson, C. and Smith, A. (2022) “The 'completeness' of the EU  Single Market in comparison to the 
United States”, Single Market Economy Papers, WP7, Publication Office of the European Commission. See also 
Section  2.4  on  how  non-regulatory  barriers  are  addressed  in  the  EU  through  administrative  cooperation  and 
digital tools. 

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Source:  Commission services, based on Eurostat. Note: the graph shows intra-EU trade flows in goods and services as a share of EU GDP. 
The vertical dotted lines in the graph highlight changes in the scope of data on trade and GDP being considered, in light of the number of 
Member States (e.g. the period 2007-2012 considers trade and GDP for EU-27, whereas the period 2013-2019 considers trade and GDP for 
EU-28). Trade is measured by the average of imports and exports. 

Moreover, the Single Market is an important vehicle for financial integration in Europe and 
essential  for  the  economic  and  monetary  union.  It  makes  it  easier  for  businesses  to  raise 
money  and  makes  Europe  a  more  attractive  place  to  invest20.  Intra-EU  holdings  of  foreign 
direct investments and portfolio investments kept increasing in the last decades, were almost 
5 times higher, and 4 times higher, respectively, in the second quarter of 2021 compared to 
the beginning of 2002. As part of the Capital Markets Union Action Plan, several initiatives 
are underway to complete the Single market for Capital. Most recently, in December 2022, as 
part of the Capital Markets Union, the Commission put forward a proposal to cut red tape for 
companies, in particular SMEs, aiming to raise funds on stock exchanges and a proposal to 
address  structural  barriers  by  harmonising  key  aspects  of  corporate  insolvency  laws. 
Nevertheless, much more remains to be done to integrate national capital markets. Integrated 
and trusted payment systems support the functioning of the Single Market and thus contribute 
to the EU’s competitiveness.  

The social benefits  of the  Single Market  on employment  are  also  significant, with  up to 56 
million jobs in the EU depending on intra-EU trade. The number of mobile EU workers has 
increased  steadily  in  the  last  30  years  thanks  also  to  programmes  such  as  EURES21  and  to 
policies aimed at improving qualifications and skills recognition. The EU model of a social 
market  economy  relies  on  high  social  standards  as  promoted  by  the  European  Pillar  of 
Social Rights. It promotes equal opportunities and access to the labour market, fair working 

20  Source:  European  Central  Bank  (2022),  Financial  Integration  and  Structure  in  the  Euro  Area,  Technical 
report,  European  Central  Bank,  Frankfurt.  European  Commission  (2022),  European  Financial  Stability  and 
Integration Review, Staff Working Document, SWD(2022) 93 final, European Commission, Brussels. 
21 EURES is a European cooperation network of employment services, designed to facilitate the free movement 
of workers EURES (europa.eu). 

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conditions and social protection, inclusion and diversity (for instance on posting of workers22, 
work-life balance23, adequate minimum wages24 and pay transparency). In return, this social 
framework contributes to a level playing field in the Single Market. 

The Single Market has also allowed for the further development of the social economy, with 
about 2.8 million social economy entities in Europe employing around 13.6 million people25.  
The  Commission  adopted  an  action  plan  for 
in  December 
202126, proposing concrete actions to be implemented by 2030. A Social Economy Package 
will  be  adopted  this  year,  including  a  legislative  initiative  on  cross-border  activities  of 
associations in the Single Market. 

the  social  economy 

The  Single  Market  has  played  a  major  role  in  enabling  progressive  upward  economic 
convergence  within  the  EU  following  successive  enlargements.  This  is  because  the  Single 
Market  has  created  a  level  playing  field  for  businesses  across  the  EU,  making  it  easier  for 
companies to operate across borders and compete on an equal footing. This has encouraged 
greater cross-border trade and investment, which in turn has helped to boost economic growth 
and  create  jobs.27  Social  and  economic  cohesion  are  vital  for  the  functioning  of  the  Single 
Market,  as  recognised  in  its  founding  act  30  years  ago.  Cohesion  policy  supports  a 
harmonious development of European regions, allowing them to contribute to, and reap the 
benefits of their participation in, the Single Market. By increasing opportunities for economic 
activity, the Single Market has allowed lower-income countries to converge towards higher-
income  ones  and  has  contributed  to  creating  more  jobs,  therefore  reducing  unemployment. 
The Single Market has underpinned the competitiveness of European businesses28, which 
has  resulted  in  better  products  and  lower  prices  for  consumers29.    It  has  also  made  value 
chains  in  the  EU  highly  integrated  and  interconnected.  The  mobility  and  automotive 
ecosystem, for example, is not only made up of large, world-renowned corporations, but most 

22 Directive (EU) 2018/957 of the European Parliament and of the Council of 28 June 2018 amending Directive 
96/71/EC  concerning  the  posting  of  workers  in  the  framework  of  the  provision  of  services  (Text  with  EEA 
relevance).  
23 Directive (EU) 2019/1158 of the European Parliament and of the Council of 20 June 2019 on work-life 
balance for parents and carers and repealing Council Directive 2010/18/EU.  
24 Directive (EU) 2022/2041 of the European Parliament and of the Council of 19 October 2022 on adequate 
minimum wages in the European Union.  
25 Figure covering the EU 28. See European Economic and Social Committee, Recent evolutions of the Social 
Economy in the European Union, by Monzon J. L. and Chaves R., 2017. 
26  Communication  from  the  Commission  ‘Building  an  economy  that  works  for  people:  an  action  plan  for  the 
social economy’, COM(2021)778. 
27 Source: Parson, C. and Smith, A. (2022) “The 'completeness' of the EU single market in comparison to the 
United States”, Single Market Economy Papers, WP7, Publication Office of the European Commission. See also 
Section 2.4 on how such non-regulatory barriers are addressed in the EU through administrative cooperation and 
digital tools. 
28 Over the past decade, research and innovation in the wide sense contributed to two thirds of EU productivity 
growth.  Horizon  Europe  and  its  predecessor  programmes  have  helped  creating  and  better  diffusing  excellent 
knowledge and technologies throughout the Single Market. See Science, Research and Innovation Performance 
of the EU (SRIP) Report 2020. The October 2022 Eurobarometer survey on competition policy,  focussing on 
citizens and SMEs shows that a vast majority of respondents believe that competition encourages innovation and 
allows for more choice and better prices. See https://ec.europa.eu/commission/presscorner/detail/en/ip_22_6374.  
29 In specific terms, it is estimated that interventions concerning mergers, cartels and antitrust generated direct 
customer savings in the range of EUR 12-21 billion per year in the period 2012-2021 (Annual Single Market 
Report 2023, page 18). 

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importantly  component  suppliers,  sales  and  repair  networks,  and  represents  a  total  of  1.8 
million companies, 99.7% of which are SMEs.  

Competition  policy  plays  a  central  role  for  preserving  well-functioning  markets  and  in 
addressing relevant  market  failures in  Europe. Since the creation of the Union, competition 
policy has helped industries become stronger and globally competitive and has ensured that 
EU  citizens  are  the  ultimate  beneficiaries  of  a  highly  competitive  social  market  economy. 
Rules-based competition  law enforcement also  provides legal  certainty  and predictability to 
all businesses striving to make the best of Europe’s Single Market.   

2.3. Building resistance and resilience against crises 

The  recent  succession  of  crises  has  demonstrated  the  critical  importance  of  a  smoothly 
functioning  Single  Market.  Essential  services  such  as  energy,  water  and  health  provision, 
transport30 and telecommunications are key to ensuring the well-being of people, as well as to 
the emergency response itself. These services need to remain operational during and after a 
disaster or crisis.  

When  Member  States  act  individually,  by  closing  their  borders  or  introducing  intra-EU 
export  bans  on  medical  equipment,  grain  or  raw  materials,  the  whole  functioning  of  the 
Single  Market  is  put  under  pressure,  threatening  industry,  services  and  professionals  alike, 
and  ultimately  citizens.  While  the  COVID-19  pandemic  led  to  initial  shortages  of  essential 
products and huge traffic jams at frontiers preventing free movement of essential workers, the 
Single Market prevailed. When the global demand for masks and vaccines skyrocketed, the 
Single  Market  helped  us  overcome  the  lack  of  diverse  sources  of  supply  and  capacity  to 
produce what had become vitally important goods. 

After an initial period in which national authorities raised barriers to the free flow of goods, 
services and people in a unilateral and uncoordinated way, which affected economic activity 
profoundly,  the  Commission  stepped  in  –  with  the  support  of  Member  States  –  to  remove 
these with initiatives such as “green lanes”. And the EU maintained fully open supply chains 
with the world, building on a thriving industry that has benefitted from the Single Market for 
decades,  and  joining  forces  and  capacities  all  over  Europe  from  large  companies  to  highly 
innovative and competitive SMEs. 

We  have  drawn  the  necessary  policy  lessons  from  these  crises,  building  on  these 
achievements.  The  Commission  established  the  Health  Emergency  Preparedness  and 
Response  Authority  (HERA)  to  better  detect,  prevent  and  respond  to  future  cross-border 
health  emergencies.  The  Commission  has  also  proposed  a  new  Single Market  Emergency 
Instrument to make sure that, in a future crisis situation, the Single Market remains open and 
fair, and continues to ensure the availability of goods and services that people and businesses 
most  need.  More  generally,  the  EU  has  stepped  up  its  emergency  readiness  at  all  levels 

30 To strengthen the resilience of EU transport in times of crisis, the Commission adopted a Communication on 
Contingency Plan for Transport (COM/2022/211 final). See also the Action Plan on Military Mobility 2.0: 
https://defence-industry-space.ec.europa.eu/action-plan-military-mobility-20_en 

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through  the  Union  Civil  Protection  Mechanism31.  Finally,  ensuring  the  resilience  of  Single 
Market  requires  a  coordinated  approach  at  EU  level  against  growing  cross-border  threats, 
notably to critical sectors and infrastructure that is being developed and implemented under 
the Security Union umbrella.32  

Resilience  is  also  improved  with  better  preparedness.  The  Commission  has  designed  an 
early  warning  system  (SCAN  Monitoring  System)33  with  the  goal  of  providing  evidence 
for  policy.  It  uses  quasi-real-time  customs  data  and  examines  anomalous  variations  in 
quantities  and  prices  to  reveal  premature  signs  of  supply  chain  disruption.  Other  possible 
drivers include the excessive concentration of  certain  imports from  limited  foreign sources, 
the  existence  of  global  single  points  of  failure  for  critical  inputs  propelled  by  strategic 
dependencies, or indications of limited EU industrial  production capacity. The  Chips Act34 
proposed in 2022 and the proposal for a European Critical Raw Materials Act35 adopted 
in parallel to this Communication will, respectively, help turn the EU’s world-class research 
into  industrial  leadership,  by  investing  in  European  industry  and  promoting  international 
partnerships,  and  set  a  framework  to  improve  access  to  raw  materials  within  the  Single 
Market, increase European capacity and diversify external sources of raw materials.  

The  Green  Deal  Industrial  Plan  for  the  Net-Zero  Age36  sets  out  the  challenges  that 
European industry is currently facing and therefore proposes further measures to promote the 
net-zero industry.  As part of this plan, the  Commission has  proposed a  Net  Zero Industry 
Act37,  and  has  adopted  a  State  Aid  Temporary  Crisis  and  Transition  Framework38, 
setting  out  targeted,  temporary,  and  proportionate  measures  to  accelerate  Europe’s 
competitive  transition  to  a  net-zero  economy  while  avoiding  fragmentation  of  the  Single 
Market. In addition, as announced in the Green Deal Industrial Plan, the Commission intends 
to propose a European Sovereignty Fund  before summer 2023 to preserve a European edge 
on critical and emerging technologies relevant to the Green and digital transition, as well as 
to safeguard cohesion and preserve the integrity of the Single Market.  

2.4. The Single Market as a pull factor and geopolitical asset on the global stage  

The  benefits  the  Single  Market  brings  are  a  major  component  of  the  EU’s  overall 
attractiveness as a pole of security, stability and open values. The EU accounts for around 
14%  of  the  world’s  trade  in  goods39.  In  addition  to  successive  enlargements  between  1973 
and  2007,  in  the  1990s  EFTA  members  Iceland,  Liechtenstein  and  Norway  decided  to 

31 https://civil-protection-humanitarian-aid.ec.europa.eu/what/civil-protection/eu-civil-protection-
mechanism_en.  
32 For example, the Directive on the resilience of critical entities (Directive (EU) 2022/2557). 
33 See SCAN” (Supply Chain Alert Notification) Monitoring System, which introduces this approach 
accompanied by a pilot application to Solar PVs: https://single-market-economy.ec.europa.eu/publications/scan-
supply-chain-alert-notification-monitoring-system_en”. 
34 Proposal for a Regulation of the European Parliament and of the Council establishing a framework of 
measures for strengthening Europe's semiconductor ecosystem (Chips Act), COM(2022) 46 final. 
35 COM(2023)160 
36 COM(2023) 62  
37 COM(2023) 161 
38 Temporary Crisis and Transition Framework (europa.eu). 
39 https://european-union.europa.eu/principles-countries-history/key-facts-and-figures/economy_en. 

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establish the European Economic Area jointly with the EU, thus extending the four freedoms 
of the Single Market to their countries. Many countries in the Western Balkans and Eastern 
neighbourhood wish to pursue a future as members of the Union and its Single Market. The 
EU is strongly committed to supporting the Western Balkans on their path towards the EU.  

The EU is also seizing every opportunity to integrate Ukraine further into the Single Market, 
e.g.  by  connecting  it  to  the  EU’s  electricity  grid,  suspending  import  duties  on  Ukrainian 
exports to the EU, creating Solidarity Lanes to improve movement of goods and persons and 
bringing Ukraine into the European roam-like-at-home area. The Commission will focus with 
Ukraine  on  agreed  priority  actions40,  including  in  the  area  of  public  procurement, 
standardisation,  industrial  cooperation,  Technical  Barriers  to  Trade  and  conformity 
assessment41, in order to better integrate Ukraine into the Single Market. Similar efforts are 
underway to similarly integrate Moldova. The EU is also including Ukraine and other Eastern 
Partnership  countries  in  a  number  of  key  EU  programmes  such  as  the  Single  Market 
Programme.42 

The  Single  Market  is  also  a  force  of  projection,  a  geopolitical  lever  that  boosts  the  EU’s 
standing  and  influence  in  the  world.  It  is  the  economic  backbone  of  the  EU’s  international 
diplomacy. This global influence is crucial in light of the geopolitical developments over the 
last 30 years and the intensified global competition with other continent-size economies. For 
example, during the pandemic, the fast development and authorisation of vaccines under the 
EU’s rigorous medicines regime43 gave the EU a powerful platform to help address COVID-
19 on a global scale.  

The size and attractiveness of the EU Single Market often results in companies choosing to 
apply  EU  legislation  and  standards  to  their  global  operations.  This  has  enabled  the  EU  to 
contribute to global prosperity and to the Sustainable Development Goals – with sustainable 
growth,  a  high  level  of  social  protection,  respect  for  privacy  and  fundamental  rights44,  and 
strong environmental and human rights protection. 

The  European  standardisation  system  is  a  particular  success  story  in  this  regard,  with  the 
special role of harmonised European standards that allow economic operators to demonstrate 
compliance with EU law with one standard across the Single Market. As underpinned by the 
recent  EU  Standardisation  Strategy45,  standards  play  an  important  role  for  the  digital  and 
green  transition  and  can  give  the  EU  a  global  leadership  role,  especially  when  it  comes  to 

40 Priority  Action Plan for enhanced implementation of the  EU-Ukraine Deep and Comprehensive  Free  Trade 
Agreement.  
41  The  Commission  is  preparing  the  ground  for  an  Agreement  on  Conformity  Assessment  and  Acceptance  of 
Industrial Products (ACAA) with Ukraine. The  Commission is engaged in preparatory work  with Moldova as 
well, with the intention of starting negotiations for an ACAA. 
42 In order to strengthen the Single Market on the ground, a significant funding package of EUR 4.2 billion – the 
Single Market Programme – was adopted to support a variety of actions from improving market surveillance to 
providing  citizens  and  businesses  with  problem-solving  support,  supporting  SMEs’  competitiveness  and 
improving food safety. 
43COVID-19 vaccines | European Medicines Agency (europa.eu). 
44 Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection 
of natural persons  with regard to the processing of personal data  and on the free movement of such data, and 
repealing Directive 95/46/EC (General Data Protection Regulation, GDPR). 
45 An EU Strategy on Standardisation  - Setting global standards in support of a resilient, green and digital EU 
single market, COM(2022)31. 

10 

 
 
                                                 
strategic technologies. Standards can also contribute to a more inclusive society by ensuring 
accessibility of a range of everyday products and services.  International standards also play 
an  important  role  not  only  for  tackling  technical  barriers  to  trade,  but  also  for  facilitating 
international  market  access  for  EU  companies.  With  the  increasing  geopolitical  role  of 
standards, enhanced EU engagement in international standards-development processes is also 
key  to  preserve  EU  values  and  interests.  For  this,  the  Commission  is  undertaking  strategic 
dialogues with key trading partners, like the US, Japan or India.  

The Single Market has enabled the EU to become a trading power, creating opportunities for 
the  EU’s  businesses  abroad,  projecting  our  rules  and  values,  connecting  the  EU  to  growth 
poles  around  the  world,  securing  the  inputs  we  need  and  supporting  others  in  achieving 
sustainability objectives. The EU is the number one trading partner for 53 countries around 
the world that together represent 48% of world GDP. The Single Market provides leverage 
to ensure that the EU’s openness goes hand in hand with respect of the EU’s rules, for 
instance by addressing distortions caused by foreign subsidies46, preventing goods made with 
forced labour47  or environmentally/socially  unsustainable practices. Furthermore, the ability 
of  the  EU  to  use  economic  tools,  such  as  sanctions  and  restrictive  measures,  to  uphold  the 
international  rules-based  order,  is  predicated  on  a  well-functioning  Single  Market  with  a 
central role in the global economy. 

3.    THE  WAY  FORWARD  –  TOWARDS  FURTHER  INTEGRATION  OF  THE 

SINGLE MARKET 

Anniversaries are  an opportunity  not  only  to look back at  past  achievements, but  to  set  the 
expectations  and  objectives  for  the  future.  In  a  rapidly  changing  environment,  efforts  to 
improve  enforcement  of  Single  Market  rules  and  to  instil  joint  ownership  of  the  Single 
Market at EU and national level need to continue. Rules must also, where necessary, continue 
to be adapted to new products, services and business models that will help fuel the green and 
digital transitions.  

A  fully  functioning  Single  Market  is  the  essential  foundation  of  the  EU’s  long-term 
competitiveness.  The  Commission’s  Communication  on  competitiveness,  published 
alongside  this  Communication48,  sets  out  actions  to  ensure  a  predictable,  coherent  and 
simplified regulatory framework that is favourable to long-term competitiveness, as well 
as  to  ensure  the  availability  of  skills  needed  for  the  green  and  digital  transitions  and  for 
economic growth, and to speed up and improve access to finance. 

Going forward, the Commission will work with all levels of governance and all stakeholders 
to fully  harness  the potential  of the Single Market  so that it provides  a firm foundation for 

46 Regulation (EU) 2022/2560 of the European Parliament and of the Council of 14 December 2022 on foreign 
subsidies distorting the internal market. 
47 Proposal for a Regulation of the European Parliament and of the Council on prohibiting products made with 
forced labour on the Union market, COM(2022) 453 final. 
48 COM(2023)168 

11 

 
 
 
 
 
                                                 
long-term  sustainable  competitiveness.  In  this  context,  this  Communication  focuses  on  two 
key areas for further action: 

  enforcing  existing  Single  Market  rules  and  removing  Member  State-level 
barriers,  in  particular  barriers  to  the  cross-border  provision  of  services,  and  in  the 
industrial  ecosystems  with  the  greatest  economic  integration  potential  (retail, 
construction, tourism, business services and renewable energy sector),   

  continuing  to  foster  the  green  and  digital  dimensions  of  the  Single  Market  as  a 

source of innovation, growth and competitiveness. 

3.1. Enforcing Single Market rules and removing Member State-level barriers 

Citizens  and  businesses  can  fully  benefit  from  the  Single  Market  only  when  EU  rules  are 
correctly  implemented  and  enforced.49  Ensuring  the  correct  day-today  implementation  of 
single market rules is the collective responsibility of the Commission and the Member States. 
In particular, a correct application of regulations relies on the work of national authorities to 
give full effect to them.  

Correct and timely transposition of EU law is of critical importance to ensure that Single 
Market  legislation  achieves  its  intended  effects.  The  average  transposition  deficit  of  Single 
Market  directives50  now  exceeds  the  1%  threshold  set  by  the  European  Council  in  March 
2007. Only five Member States have met the agreed target (see graph 3). Directives also need 
to be correctly transposed and applied on the ground, paying particular attention to issues of 
unjustified  "gold  plating".  Here,  Member  States  need  to  improve  the  situation  considerably 
(see graph 4). 

49 See also recent Commission Communication on Enforcing EU law for a Europe that delivers (COM(2022)518 
final). 
50 Single Market Scoreboard 2022.  
This analysis considers 997 directives and 5669 regulations to ensure the functioning of the Single Market, in 
force on 1 December 2021. 

12 

 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Graph 3: Transposition deficit of Member States as at 10 December 202151 

Source : Single Market Scoreboard52 

Graph 4: Conformity deficit of Member States as at 10 December 2021  

Source: Single Market Scoreboard53 

There  is  no  one-size-fits-all  approach  to  making  Single  Market  rules  achieve  their  full 
potential,  but  in  all  cases,  a  strong  culture  of  compliance  and  the  spirit  of  partnership  are 
needed to successfully manage the Single Market. The Commission is committed to working 
together  with  the  Member  States  at  the  appropriate  level  within  their  administration  to 
support and promote the  ambitious implementation  of Single Market  rules.  Complementing 
cooperation, the Commission will continue to pursue a rigorous enforcement policy to ensure 
that jointly agreed EU rules are also correctly applied collectively by all Member States. 

The  Commission  pursues  a  strategic  approach  to  enforcement  and  is  successfully 
implementing its 2020 Single Market Enforcement Action Plan54, focusing on critical issues. 

51 See footnotes 65 to 68  for details on enforcement  deficit targets. 
52 Single Market Scoreboard 2022. 
53 Single Market Scoreboard 2022. 

13 

 
 
 
 
 
 
 
 
                                                 
This  includes  ensuring  the  freedom  of  establishment,  the  free  circulation  of  goods  and 
services,  including  mobility  of  professionals  to  bridge  skills  gaps,  ensuring  public 
procurement rules enable companies to compete across the Single Market and public funds to 
be  used  efficiently,  addressing  unfair  payment  practices  and  delays  in  payments,  and 
enforcing European standards for the benefit of citizens and companies. 

In February 2023, the Commission adopted 24 infringement decisions to bring down barriers 
in the Single Market in services and make it easier for companies in the EU to operate55.  At 
the  same  time,  robust  enforcement  action  by  the  Commission  meant  that  it  was  possible to 
close 18 infringement cases due to real improvements in the Single Market for services. 

Unjustified barriers arise when national law conflicts with Single Market rules or when those 
rules  are  incompletely  or  insufficiently  implemented  or  applied  at  national  level,  including 
due to administrative practices of national authorities. They hinder the capacity of businesses 
to flourish, remain competitive and to harness the green and digital transition.  

Some types of barriers have proven to be persistent: 60% of the barriers that businesses report 
facing  today  are  of  the  same  type  as  were  reported  20  years  ago56.  Many  of  these  relate  to 
national regulation as well as administrative practices, which, in the first instance, have to 
be  addressed  directly  by  Member  States.  Barriers  confirmed  by  stakeholders  include  the 
complexity of national procedures and lack of information on them, disproportionate national 
requirements  in  the  area  of  services,  including  mobility  of  professionals,  burdensome 
administrative requirements for posting workers and difficulties related to taxation in a cross-
border context. Many such barriers are not amenable to legislative harmonisation and hence 
reducing  obstacles  at  national  level  remains  the  major  objective.  Technical  Support 
Instrument  helps  Member  States  to  improve  public  administration  and  create  an  enabling 
business environment.  

Services are particularly crucial to the EU economy. They account for around 70% of the 
EU's GDP and 73% of total employment. Services cover a broad range of sectors and many 
different activities. In some sectors, the free movement of services works well, facilitated by 
digital  technologies  and  harmonised  rules.  Others  are  still  mainly  domestic  markets, 
sometimes  due  to  intrinsic  factors  of  the  specific  service  (e.g.  regional  or  national  market 
preferences). Where there is scope for more integration in services,  barriers typically linked 
to national regulation in the area of business services, restrictive authorisation requirements 
in the area of retail, regulatory and administrative requirements complicating the cross-border 
provision  of  construction  services,  and  restrictions  in  tourism  both  for  cross-border  service 
provision and as regards requirements for accommodation services.   

Strengthened collaboration between Member States and with the Commission and exchanges 
of information, as well as exchanges of views especially in the Competitiveness Council, play 
an important role in effective implementation of Single Market rules, preventing breaches of 
EU law from the outset and avoiding infringements of EU law. 

54  As  described  in  the  Annex  1  :  Stocktaking  of  the  implementation  of  the  2020  Single  Market  Enforcement 
Action  Plan,  Annual  Single  Market  Report  2023.  All  actions  of  the  long  term  Action  Plan  for  better 
implementation and enforcement of single market rules have been implemented or launched.  
55 Free movement of services: Commission takes action (europa.eu). 
56 See “30 years of single market – taking stock and looking ahead”, European Commission 2022. 

14 

 
 
                                                                                                                                                        
The  work  of  the  Single  Market  Enforcement  Taskforce  (SMET)57,  set  up  in  2020,  has 
shown the significant value of collaboration between Member States and the Commission in 
tackling the concrete barriers that EU businesses experience in the Single Market. The joint 
and intensive work in this innovative forum focuses on simplifying the regulatory framework 
and  reducing  administrative  barriers  in  specific  areas.  For  example,  within  SMET  Member 
States  have  agreed  to  simplify  the  constraints  for  professionals  and  businesses  that  provide 
temporary cross-border services and, based on good practices, to remove prior qualification 
checks  for  247  professions  and  to  review  and  reduce  administrative  and  document 
requirements.  

SMET  also  identified  more  than  80  of  the  most  pressing  barriers  to  the  smooth  and  rapid 
granting  of  permits  for  the  deployment  of  wind  and  solar  energy  installations.  Bearing  in 
mind  there  are  50 000  SMEs  active  in  the  production  of  renewable  energy,  removing  these 
barriers will facilitate sustainable growth. This will also make the EU more attractive as an 
investment location, and complement well the proposal for a Net Zero Industry Act , which 
aims to facilitate and speed up investments into net-zero technology manufacturing projects 
so as to significantly scale up the production of solar panels, wind turbines and other clean 
energy  technologies  in  Europe.  The  existing  legal  framework  on  permitting  for  the 
deployment  of  renewable  energy  installations  (based  on  the  Renewable  Energy  Directive), 
will soon be complemented through this legislation as regards a harmonised legal framework 
to  also  streamline  permitting  for  new  industrial  facilities  that  produce  such  technologies, 
including  gigafactory-sized  projects.  The  Commission  reiterates  the  significant  value  of 
SMET as a cooperative tool with the Member States to address Single Market barriers, and 
therefore  relies  on  continued  joint  efforts  aiming  at  concrete  deliverables  within  this 
framework.  

Continuing  the  existing  structured  engagement  with  business  stakeholders,  including  in 
the context of the Industrial Forum58, the Enterprise Europe Network (EEN), the network of 
national  SME Envoys and  the clusters network,  is also  crucial to  better  understand barriers 
that they  face.  This  work will be fed by  analytical  work such as the  Annual  Single Market 
Report and the SMET Annual Report. The Single Market Scoreboard is a helpful tool for 
all stakeholders to understand the remaining barriers and to design actions to remove them. 
The  Commission  will  carefully  monitor  selected  indicators  from  the  Single  Market 
Scoreboard  and  other  relevant  sources  related  to  enforcement  and  the  business 
environment,  such  as  transposition  and  conformity  deficits,  public  procurement,  payment 

57 https://single-market-economy.ec.europa.eu/news/single-market-task-force-continues-tackle-barriers-single-
market-2022-11-29_en. 
58 The  Industrial  Forum  brings  together  Member  States,  businesses  of  all  sizes,  trade  unions  and  civil  society 
and it acts as a sounding board for stakeholders and showcases the state of the European competitiveness. The 
Forum also counts on a dedicated taskforce that is tasked with assessing the state of the Single Market. It also 
actively  contributes  to  Transition  Pathways,  which  also  take  into  account  regulatory  challenges  for  the  twin 
transitions and resilience of Europe’s industry. It acts as a sounding board but also as a source of information on 
issues  that  industry  is  facing  and  how  to  address  them.  The  Forum  meets  in  plenary  2-3  times  a  year,  most 
recently 7 March 2023. 

15 

 
 
                                                 
delays  by  public  authorities  and  availability  of  digital  public  services  as  well  as  those 
indicators developed in the Reform Recommendations for professional services. 59   

The  existing  collaboration  instruments  should  be  fully  exploited  to  improve  further  the 
proactive  and  practical  resolution  of  Single  Market  problems  for  citizens  and  businesses, 
including urgent action by Member States to ensure that national SOLVIT centres60 have 
sufficient  and  adequate  human  resources.  Scrutinising  national  measures  before  they  are 
adopted  has  shown  to  be  particularly  effective  to  prevent  conflicts  with  the  Single  Market 
rules.  SOLVIT  has  managed  to  solve  more  than  2000  cases  in  202161  with  the  average 
resolution rate of 87%.  

The  notification  mechanism  under  the  Single  Market  Transparency  Directive  (SMTD 
notification  system)62  has  developed  into  a  genuinely  preventive  tool,  reinforcing  dialogue 
and cooperation between Member States and the Commission at an early stage, for instance 
with respect to low-emission transport or recycling and reducing waste.  

In  order  to  improve  compliance  with  Single  Market  rules,  the  Commission  intends  to 
simplify the notification obligations of Member States by setting up a single notification 
entry point for Single Market notifications. Whereas Member States currently have to use a 
variety  of  notification  tools,  set  up  under  different  pieces  of  Single  Market  legislation,  a 
Single  Notification  Window  will  enable  Member  States  to  finalise  all  notifications  in  one 
place.  

In  the  area  of  services,  the  Commission  is  also  launching  a  priority  process  of  addressing 
jointly  with  Member  States  barriers  to  free  movement  of  services  in  industrial 
ecosystems  with  a  high  services  content  which  have  not  reached  their  potential  of  cross-
border  trade.  These  ecosystems  are  in  particular  construction,  retail,  tourism  and  business 
services.  

Many barriers are not intended as such – they are often simply the outcome of different ways 
of doing things, devised at different times in different Member States, focused on national or 
local considerations. They may not be clearly contrary to the Treaty or to harmonised rules. 
However,  they  can  still  significantly  impede  cross-border  business.  Moreover,  despite  the 
benefits  we  can  all  derive  from  smoother  exchanges,  powerful  vested  interests,  other  more 
politically  visible  priorities  and/or  the  simple  force  of  inertia  may  stand  in  the  way  of 
practical  solutions.  The  Commission  cannot  be  the  sole  voice  of  the  interest  of  the  Single 
Market, acting through its enforcement and convening powers. The Single Market also needs 
a  dedicated  voice  within  national  administrations.  The  Commission  therefore  proposes  to 

59  According  to  the  Single  Market  Scoreboard,  the  latest  score  on  the  provision  of  digital  public  services  for 
businesses was very high (around 80 or more) for two thirds of Member States. By contrast,  in 2022, 19 out of 
27 Member States showed higher public payment delays by public authorities than in 2019. Overall, the public 
procurement  indicators  suggest  a  stable  situation,  with  slight  improvement.  However,  there  is  scope  for  the 
further progress in several Member States, in areas such as the share of public procurement tenders with a single 
bidder  and  the  share  of  direct  awards. On  professional  services,  the  scoreboard  shows  little  if  any  progress 
between 2007 and 2021 with respect to reducing regulatory barriers for entry to and the exercise of professions. 
Legal services remain the most protected profession in the Single Market. 
60 National SOLVIT centres - European Commission (europa.eu). 
61 SOLVIT’s Helping Hand in the Single Market: celebrating 20 years 
https://ec.europa.eu/solvit/_docs/2022/anniversary_report_web_en.pdf. 
62 Single market transparency directive – EUR-Lex (europa.eu). 

16 

 
 
                                                 
each Member State to establish a dedicated Single Market Office to address Single Market 
barriers.    Such  office  should  have  a  senior  leadership  and  appropriate  resources,  and  a 
standing brief to proactively raise issues and propose solutions within the national decision-
making system63. This work would be complementary to collaborative tools such as SOLVIT 
and SMET and could contribute in particular to addressing remaining barriers for services. 

Preventing  new  trade  barriers  from  emerging  is  extremely  important  and  is  especially 
relevant  in  the  services  sector,  where  the  diversity  of  national  regulation  and  strong  vested 
interests  have  limited  the  ability  to  achieve  greater  integration  in  the  Single  Market.  The 
Services  Directive  requires  Member  States  to  ensure  that  new  regulations  which  they 
introduce  are  justified  and  proportionate,  namely  as  regards  restrictions  such  as  territorial 
limitations,  company  ownership  rules  or  fixed  tariffs.  The  Services  Directive  also  obliges 
Member  States  to  notify  such  new  requirements  to  the  Commission  and  the  other  Member 
States.  

Moreover,  since  2020,  the  Proportionality  Test  Directive  has  provided  a  framework  for 
Member States to assess and explain why any new national rules are non-discriminatory and 
proportionate  before  they  enter  into  force.  However,  it  only  applies  to  part  of  the  services 
economy,  namely  regulated  professional  services.  The  Commission  intends  to  explore 
together  with  Member  States  how  to  make  best  use  of  this  framework  for  services  at  large 
and not just professions. It will do so by adapting the Services Directive notification tool and 
providing  additional  targeted  guidance  to  Member  States  for  applying  these  proportionality 
criteria.  This  will  contribute  significantly  to  better  and  less  restrictive  regulation  and  avoid 
recourse to costly and unnecessarily confrontational ex-post enforcement. 

A  large  group  of  Member  States  has  started  working  together  with  the  Commission  with  a 
view  to  voluntarily  introducing  a  common  e-declaration  for  posted  workers64.  The 
Commission urges all Member States to work towards finalising their work by end of 2023.  

A  renewed  political  commitment  at  all  levels  is  needed  to  enhance  application  and 
enforcement  of  Single  Market  rules  and  to  deliver  on  previous  commitments65.  The 
Commission  will  regularly  bring  the  results  of  the  Single  Market  Scoreboard  to  the 
attention  of  national  authorities  responsible  for  the  Single  Market,  notably  in  the 
Competitiveness  Council.  The  discussion  should  assess  progress  on  achieving  the  targets, 
identify  potential  additional  action  in  order  to  improve  Member  States’  performance  in 
enforcing Single Market rules and reducing unnecessary and disproportionate barriers. 

The Commission refers to its previous call on the Member States to commit to limiting 
the transposition deficit to 0.5% for all directives66 and to 0% in the case of directives whose 

63  Its  role  should  be  adapted  to  different  governance  systems,  e.g.  in  federal  systems,  or  where  there  is 
significant decentralisation. 
64 By early 2023 and following consultations and a feasibility study, 20 Member States agreed to work towards a 
common form as announced in the Industrial Strategy Update 2021. 
65  1%  transposition  deficit  (percentage  of  Single  Market  directives  not  yet  completely  notified  to  the 
Commission) target established by the European Council, Brussels 8-9 March 2007, and 0% transposition target 
for  directives  whose  implementation  is  more  than  two  years  overdue  established  by  the  European  Council, 
Barcelona 15-16 March 2002. 
66 0.5% transposition deficit target proposed by the Commission in the Single Market Act COM/2011/0206 

17 

 
 
                                                 
implementation  is  more  than  two  years  overdue67.  Likewise,  the  Commission  refers  to  its 
previous proposal to limit the conformity deficit to 0.5% for all directives68. Furthermore, for 
cases  concerning  the  non-communication  of  transposition  measures,  the  Commission  has 
proposed  the  target  of  12  months  from  the  sending  of  the  letter  of  formal  notice  to  the 
resolution of the case or to refer infringement cases to the Court of Justice69.  

Based  on  the  above  elements,  the  Commission  proposes  to  set  concrete  targets  on 
enforcement with the aim of limiting both the transposition as well as conformity deficit 
to  0.5%.  It  also  proposes  to  set  a  benchmark  on  SOLVIT  with  the  aim  of  solving  a 
minimum of 90% of the cases within 12 months in each Member State. The Commission will 
also  communicate  on  its  observations  on  progress  in  solving  Single  Market  barriers  in  the 
context of cooperative tools such as SMET.  

3.2. Continuing to foster the green and digital dimensions of the Single Market 

The Single Market will be crucial for the EU’s green transition and the circular economy. 
The EU needs to  maintain  its leadership on clean  technologies  and  its  competitive edge on 
decarbonisation  to  be  able  to  deliver  a  zero-emissions  economy.  We  need  to  use  materials 
and other resources more efficiently and shift to a circular economy that retains the value of 
materials in products and minimises waste. The Circular Economy Action Plan is being rolled 
out with ambitious goals to promote green and digital transition. 

Common rules applicable throughout the EU will make it easier for businesses to rise to the 
challenge, and thus to achieve our objectives – also potentially at the global level. Ecodesign 
rules  for  Sustainable  Products  facilitate  and  increase  the  recuperation  and  recycling  of 
materials  from  products  at  the  end  of  their  life  cycle,  minimising  waste  production.  The 
Product Passport Initiative will allow consumers and operators to easily access information 
on compliance of products, as well as recycled and recyclable content in products.  

The EU sustainable finance framework offers tools that help private capital invest into green 
activities and finance the transition. The EU Taxonomy offers a list of sustainable economic 
activities tailored for investors looking for clean-tech and sustainable investments.  

Whilst  the  current  design  of  the  EU  electricity  market  has  over  many  years  delivered  an 
efficient,  well  integrated  market,  which  incentivised  deployment  of  renewable  and  low-
carbon  energy  and  clean  flexible  technologies,  the  recent  energy  crisis  has  highlighted  a 
number of shortcomings, which have exposed households and companies to significant price 
spikes  with  effects  on  their  electricity  bills.  To  respond  to  the  crisis,  the  EU  adopted  an 
energy  prices  toolbox  with  measures  to  address  high  prices  (including  income  support,  tax 
breaks, and  gas-saving and storage measures), as well as the REPowerEU plan with further 
measures  and  funding  to  boost  energy  efficiency  and  renewable  energy  in  order  to  reduce 

67 0% transposition target for directives  whose implementation is more than two  years overdue established by 
the European Council, Barcelona 15-16 March 2002 
68 0.5 conformity deficit targets proposed by the Commission in the Single Market Act COM/2011/0206 
69 Communication from the Commission — EU law: Better results through better application C/2016/8600 

18 

 
 
 
                                                 
dependence on Russian fossil fuels. The Commission has proposed a reform of the Electricity 
Market Design70.  

Digitalisation  is  pervasive  and  part  of  our  everyday  life.  It  is  a  key  driver  of  the  Union’s 
competitiveness, prosperity and well-being of our societies. The Digital Services Act and the 
Digital Markets Act entrust the Commission with new direct, investigatory and enforcement 
powers  that  are  already  known  in  some  other  areas,  such  as  competition  law  or  financial 
regulation.  The  Commission  is  committed  to  taking  all  necessary  investigatory  and 
enforcement measures and using its supervisory  powers against very large online platforms 
and very large online search engines as well as gatekeepers, where they do not comply with 
their DSA or DMA obligations.  

Europeans  across  the  Single  Market  need  access  to  reliable,  fast  and  secure  connectivity 
throughout the Union, ensuring that all critical infrastructures in the EU, including electronic 
communications and digital infrastructures, are highly secure. In parallel to the proposal for a 
Gigabit Infrastructure Act, adopted on 23 February, the Commission has launched a broad 
exploratory  consultation  on  the  future  of  the  connectivity  sector.  The  consultation  also 
explores how we can move towards a true Single Market for electronic communications. 
This  would  ultimately  benefit  citizens  by  providing  them  with  better  and  more  affordable 
telecommunication services. 

The  2020  European  Data  Strategy  aims  to  create  a  genuine  Single  Market  for  data  where 
European rules on privacy and data protection are fully respected and there is legal clarity on 
who can access and use the data and under which conditions. The Commission proposed the 
Data Act in February 2022 in order to set the basic framework to ensure fairness in the digital 
environment,  stimulate  a  competitive  data  market,  open  opportunities  for  data-driven 
innovation and make data more accessible for all. The general framework will be supported 
by the creation and interconnection of  common European data spaces in  strategic sectors 
and domains of public interest.  

Alongside  the  publication  of  this  Communication,  the  Commission  is  launching  a  Public 
Procurement  Data  Space71,  which  will  ensure  more  accessible  and  better  quality  data  for 
public contracts, which account for around EUR 2 trillion (almost 13.6% of EU GDP).72 This 
data space will create a level playing field for businesses making bids for public procurement 
projects  anywhere  in  the  EU.  It  will  be  a  particularly  helpful  tool  for  SMEs.  It  will  help 
public buyers and businesses improve their investment and bidding strategies, and to give all 
stakeholders greater transparency and better value for money.  

The  proposed  European  Health  Data  Space  will  not  only  empower  individual  patients,  it 
will  also  enable  health-related  research  and  innovations  at  European  scale.73  Excessive 
fragmentation of the Single Market for pharmaceuticals must also be tackled, to facilitate the 
circulation of medicinal products for the benefit of EU patients. 

70 COM(2023) 148 final 
71 C(2023) 1696 
72 To date, only a small fraction of data, from only 20% of all tenders, is available and searchable for analysis in 
one  place, the EU database Tenders Electronic Daily (TED). 80% of the data, on the other hand, is spread in 
different formats and multiple systems across the Member States. 
73 European Health Data Space (europa.eu). 

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After decades of discussion, the Unitary Patent will finally become reality in June 2023. This 
marks a long-overdue deepening of the Single Market in technology. Patents are the most 
potent  of  intellectual  property  rights,  critical  for  investment  in  the  digital  transition. 
Simulations  suggest  that  the  Unitary  Patent  could  generate  a  EUR  1.8  billion  increase  in 
annual foreign direct investment into the EU74. The Unitary Patent will be accompanied by a 
reform of Standard Essential Patents setting out the global licensing standards in a way that 
maximises  R&D  investment  of  holders  and  implementers  alike  of  EU  Standard  Essential 
Patents.  

Digitalisation  is  increasingly  making  it  easier  for  citizens  to  exercise  their  social  security 
rights  across  borders.  The  Commission  will,  in  the  course  of  2023,  present  an  initiative  on 
digitalising social security coordination, in connection with the work on a pilot project for 
the European Social Security Pass75. The initiative will present how digitalisation in this area 
facilitates the exercise of citizens’ social security rights across Europe and thus supports free 
movement  of  persons  and  labour  mobility.  It  will  describe  the  progress  in  digitalisation  of 
social  security,  the  main  challenges  and  opportunities,  links  to  other  digital  initiatives  and 
will set clear milestones until 2030, supporting the Commission’s longer-term vision of more 
interoperable and interconnected social security systems. 

The EU plays an active role also in the field of tax policies to address distortions and ensure 
the  good  functioning  of  the  Single  Market.  For  example,  the  VAT  in  the  Digital  Age 
proposal76  will  greatly  contribute  to  the  strengthening  of  the  Single  Market  by  further 
simplifying  the  VAT  obligations  of  traders,  especially  SMEs,  and  by  proposing  a  digital 
reporting  requirement  which  will  prevent  further  fragmentation  in  the  EU.  The  Business  in 
Europe:  Framework  for  Income  Taxation  (BEFIT),  currently  under  preparation,  will 
introduce a single corporate tax rulebook for the EU, creating a coherent approach to business 
taxation throughout the EU. 

Moreover, the Commission is preparing an ambitious reform of the Customs Union, which 
will further strengthen the cooperation between customs and market surveillance authorities, 
by  including  centralised  risk  management  data  analytics,  and  a  more  comprehensive  and 
structured exchange of data from multiple sources. For EU businesses to prosper in the face 
of  new  geo-political  challenges  and  to  keep  their  production  facilities  within  the  Single 
Market,  preserving  its  integrity  and  a  level-playing  field  with  third-country  producers  is  of 
utmost  importance.  A  key  objective  of  the  Customs  reform  is  thus  to  more  efficiently  and 
effectively enforce EU rules at external borders, including prohibitions and restrictions77.  

74 https://www.epo.org/service-support/publications.html?pubid=162#tab3. 
75  This  pass  complements  the  Electronic  Exchange  of  Social  Security  Information  system  (EESSI),  which 
enables exchanges between authorities, by facilitating the interactions and exchanges between mobile citizens, 
social  security  institutions  and  other  relevant  public  administrations  (e.g.  labour  inspectorates  and  health  care 
providers), making real-time verification of social security entitlements possible, including by those  actors that 
do not have access to the EESSI system. 
76 See (COM(2022)701 final).  
https://taxation-customs.ec.europa.eu/taxation-1/value-added-tax-vat/vat-digital-age_en.  
77Another  example  of  strengthened  cooperation  of  customs  and  market  surveillance  authorities  is  the  recently 
adopted  EU  Single  Window  Environment  for  Customs  Regulation,  which  ensures  national  customs  systems 
interconnection:  Regulation  (EU)  2022/2399  of  the  European  Parliament  and  of  the  Council  of  23  November 

20 

 
 
                                                 
 
Successful transition to a green and digital economy requires a workforce with the necessary 
education  skills.  Already  today,  77%  of  companies  declare  that  they  struggle  to  find 
employees with  the required skills78.  A key tool for ensuring companies have access  to  the 
skills when and where they need them is the EU’s professional mobility system, which has 
already  enabled  800  000  people  to  practise  their  profession  in  another  Member  State  since 
1997.  Since  2013,  the  introduction  of  the  European  Professional  Card  and  a  Common 
Training Test has made mobility easier, but only in a limited number of professions. To tap 
this potential and make the recognition of professional qualifications in other Member States 
faster  and  easier  for  more  people,  the  Commission  will  explore  with  Member  States  the 
possibility  of  using  these  and  similar  tools  more  widely.  The  Commission  will  moreover 
present in 2023 a proposal to facilitate the recognition of qualifications of third country 
nationals in order to make the Single Market more attractive for talent and skilled workers 
from outside the EU. The Commission will also pilot the European Digital Skills Certificate 
to  ensure  a  minimum  level  of  quality  of  digital  skilling  and  upskilling  and  its  recognition 
across the EU. In parallel, we will complete the European Education Area by 2025, further 
enriching the digital and green dimension of Member States’ education systems, facilitating 
learners and teachers to  work across the Single Market and making it easier for  researchers 
and universities to collaborate. 

* * * 

4.  CONCLUSIONS 

The  Single  Market  has  benefitted  citizens,  businesses  and  the  EU  as  a  whole  in  economic, 
social and geopolitical terms. While these benefits are undisputed, further joint efforts remain 
to  be continued in  order to explore and  find solutions  in  order to  benefit further from the 
potential which is  still untapped.  The Single Market  will  also  have to  continue to  adapt to 
the new realities of the geopolitical environment, technological developments, the green and 
digital transitions and the need to boost the EU’s long-term competitiveness and productivity.  

The creation of the Single Market thirty years ago was the fruit of common endeavour. As we 
look forward, we need to continue maximising the Single Market’s benefits in the context of 
those  new  realities.  First,  a  renewed  focus  is  needed  on  tackling  barriers  in  areas  most 
relevant for the whole economy, such as services, capital markets, energy markets, digital and 
data markets. Second, enforcement activities need to focus on areas with the highest untapped 
potential, such as business services, retail, construction and tourism. Third, clear benchmarks 
are  needed  to  address  the  deficits  related  to  transposition  and  implementation  of  EU  rules, 
reducing administrative barriers and improving the business environment.  

2022  establishing  the  European  Union  Single  Window  Environment  for  Customs  and  amending  Regulation 
(EU) No 952/2013, OJ L 317, 9.12.2022, p. 1. 
78 Annual Single Market Report 2023, p. 23. 

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The  Commission  will  monitor  progress  based  on  the  Single  Market  Scoreboard  and  other 
relevant sources related to enforcement and the business environment as well as progress in 
the framework of SOLVIT and cooperative tools such as SMET.  

Based  on  the  elements  presented  above,  the  Commission’s  reporting  on  progress  with 
enforcement and implementation of the Single Market rules and on addressing barriers 
to the Single Market will inform discussions in the Council and the European Council. 
Heads  of  State  and  Government  are  invited  to  discuss  the  respective  developments  on  an 
annual basis in the context of the Spring European Council. 

All  of  this  will  require  a  common  endeavour,  jointly  with  all  actors  –  the  European 
Parliament, Member States, the Commission, as  well as businesses, SMEs and civil society 
organisations – each playing their part.  

The  Commission  calls  on  leaders,  governments,  lawmakers  and  social  partners  to  take  this 
year’s celebration of the Single Market as an opportunity to redouble efforts to keep the 
Single  Market  delivering,  and  delivering  better,  for  people  and  businesses.  A  continued 
reflection is necessary on how to take the Single Market forward over the next 30 years.  

22