COMMISSION STAFF WORKING DOCUMENT EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT REPORT on the Single Market and Customs Programme Accompanying the document Proposal for a Regulation of the European Parliament and of the Council establishing the Single Market and Customs Programme for the period 2028-2034 and repealing Regulations (EU) 2021/444, (EU) 2021/690, (EU) 2021/785, (EU) 2021/847 and (EU) 2021/1077
Date: 2025-09-03
Institutions: Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs, European Commission
Subjects: EU programme, consumer protection, customs, customs cooperation, customs union, market supervision, single market

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   EUROPEAN COMMISSION  Brussels, 3.9.2025  SWD(2025) 593 final  COMMISSION STAFF WORKING DOCUMENT  EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT REPORT  on the Single Market and Customs Programme Accompanying the document Proposal for a Regulation of the European Parliament and of the Council establishing the Single Market and Customs Programme for the period 2028-2034 and repealing Regulations (EU) 2021/444, (EU) 2021/690, (EU) 2021/785, (EU) 2021/847 and (EU) 2021/1077                  {COM(2025) 590 final} - {SEC(2025) 592 final} - {SWD(2025) 592 final}  
 
 
Impact assessment on the EU’s next long-term budget (MFF) - 
SINGLE MARKET AND CUSTOMS PROGRAMME 

1.  Need for action 

What are the problems? 

A  well-functioning  single  market  is  a  prerequisite  for  the  EU’s  competitiveness  and  for 
ensuring  Europe’s  sustainable  prosperity  and  economic  security.  However,  action  is  still 
needed to complete the Single Market, and to ensure a highly performing Customs Union, 
capable  of  adjusting  to  geopolitical  uncertainties  and  to  increasingly  volatile  international 
trade  patterns  and  challenges.  The  relevance  of  the  Single  Market  and  the  related  Customs 
Union  is  increasing  in  view  of  the  emerging  political  challenges  identified  in  the  Political 
Guidelines and recent reports from Enrico Letta and Mario Draghi. 

It is therefore imperative to ensure continuous funding in the area of the Single Market,  and 
improve  cooperation  between  national  administrations.  The  current  complex  funding 
landscape lacks flexibility and synergies, and barriers hinder effective access to the available 
funds.  More  flexibility  in  the  MFF  funding  system  will  make  it  easier  for  programmes  to 
adapt  to  evolving  priorities  while  fostering  the  EU  Customs  Union  and  the  Single  Market’s 
global competitiveness and help create a more level playing field. 

Despite the availability of significant resources through the existing Single Market  (SMP), 
Customs 1 ,  Fiscalis,  and  Union  Anti-Fraud  programmes  which  are  the  subject  of  this 
impact assessment, a range of factors still hamper their effective allocation and uptake. 

What is to be achieved? 

The general objective of this initiative is to enhance and deepen the functioning of the Single 
Market and to strengthen the Customs Union, to protect the financial and economic interests 
of the EU and its Member States through greater flexibility, simplification and synergies. 

More  specifically,  this  initiative  addresses  the  challenge  of  fragmentation,  complexity  and 
coordination shortcomings in the following three areas, where the need for EU intervention in 
the form of EU funding is underpinned by evidence. 

•  Knowledge and data gaps are among the obstacles preventing citizens, consumers, and 

businesses, economic operators from benefiting from the single market. 

•  Capacity building,  administrative and operational  cooperation among  Member States 

and between Member States and the European Commission remains suboptimal. 

•  Rulemaking, standard-setting and enforcement at EU level may not be able to adapt to 

a changing environment. 

1  Including  interventions  made  through  the  Customs  Control  Equipment  Instrument,  which  is  part  of  the 
Integrated Border Management Fund in the 2021-2027 MFF. 

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In the absence of EU action ensuring coordinated funding in the area of the Single Market, the 
Customs Union, taxation, and anti-fraud policies, the identified issues and their roots would 
persist. An unchanged funding landscape could limit the European Commission’s capacity to 
sustain activities required by its legal obligations and to  fully assess the enforcement of EU 
law. This would hinder efforts to further improve and complete the functioning of the Single 
Market and strengthen the Customs Union. 

2.  Solutions 

Description of the policy options 

Two  policy  options  were  considered, namely an  integrated scenario  and  a unified scenario. 
Both  are  built  around  different  levels  of  ambitions  for  integrating  the  current  funding 
instruments. 

With  enhanced  harmonisation  of  legal  provisions,  the  integrated  scenario  establishes  a 
single, more streamlined flexible framework but  still maintains a clear division  between the 
existing  four  programmes.  It  would  mean  that  the  future  programme  would  replicate  the 
current  pillar-based  approach  and  governance  models  of  the  Single  Market  Programme  and 
incorporate the new strands (customs, taxation and anti-fraud) as new pillars (while excluding 
the SME and food and feed strands). 

The unified scenario entails a complete merger of all policy priorities within the scope, with 
a  single  common  basic  act,  i.e.  one  set  of  legal  and  institutional  requirements  for  all  the 
activities  covered.  This  scenario  might  offer  greater  flexibilities 
through  increased 
possibilities to respond to changing circumstances or needs and a greater flexibility to transfer 
budget appropriations between different policy areas. 

Comparison of the options 

The  integrated  scenario  has  limited  potential  for  increased  flexibilities,  synergies  and 
simplifications. There is a need to strongly enable additional or enhanced activities, such as a 
faster and better response to changing circumstances, and to create more joint activities. 

The  unified  scenario,  although  possible  administratively  complex  due  to  more  demanding 
management and coordination needs, has the capacity to set a solid and agile framework and 
lead  to  incremental  improvements  compared  with  the  current  situation  of  the  four 
programmes.  It  would  lead  to  simplified  and  streamlined  processes,  cross  policy  synergies, 
integrated  digital  tools  for  access  to  funding,  plus  effective  programme  implementation  and 
reporting for all policy areas, without increasing the administrative burden for stakeholders. 

Preferred option 

After  assessing  the  two  policy  options,  primarily  focusing  on  their  designs,  the  unified 
scenario is the preferred option. Through its design and the policy areas it covers, it has the 
highest  potential  to  achieve  the  general  objective  of  the  programme  and  address  all  the 
identified problems and problem drivers. 

The  needs  of  the  concerned  policy  areas  can  be  best  tackled  with  the  unified  scenario 
consolidating four predecessor programmes by simplifying and streamlining procedures. This 

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would help promote EU policies and programmes, encourage stakeholders’ involvement, and 
increase  the  relevance  of  activities.  The  unified  scenario  brings  enhanced  operational  and 
administrative  synergies,  increased  flexibility,  fostering  simplification  and  reducing  the 
administrative burden through simplified EU funding procedures and improved digital-ready 
and evidence-based policymaking. 

3.  Impacts of the preferred scenario 

The unified scenario would make both the horizontal activities to support national authorities 
and  the  Commission’s  policymaking  and  law  enforcement  role  more  effective.  Additional 
benefits  might  arise  in  cross-policy  areas  and  horizontal  activities,  along  with  increased 
adaptability and potential for synergies  and simplification in programme management and 
administration, potentially decreasing the administrative burdens and reducing costs. 

It  is  important  that  policy-specific  legal  commitments  take  priority,  while  at  the  same  time 
allowing  the  utmost  flexibility  in  the  overall  governance  and  implementation  of  the 
programme. 

4.  Follow-up 

When will the initiative be reviewed? 

This  initiative  will  be  monitored  through  the  performance  framework  for  the  post-2027 
budget, which will be examined in a separate impact assessment. The performance framework 
provides for an implementation report during the implementation phase of the programme, as 
well  as  a  retrospective  evaluation  to  be  carried  out  in  accordance  with  Article 34(3)  of 
Regulation  (EU, Euratom) 2024/2509.  The evaluation  will be conducted in  accordance with 
the Commission’s Better Regulation Guidelines and will be based on indicators relevant to the 
objectives of the programme. 

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