Changes from report parliamentary committee draft to plenary report

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

▸13 unchanged paragraphs

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,

Changed– having regard to the report of the Committee on the Internal Market and Consumer Protection (A10-0000/2025),(A10-0151/2025),

Change 1

ChangedA. whereas the EU is one of the largest economic blocs in the world;world, with a population of around 450 million people; whereas ensuring a competitive, dynamicfit-for-purpose and simplified regulatory environment is essential for strengthening the EU’s global position and forposition, fostering long-term growth, consumer confidence and innovation; whereas such efforts should be designed to benefitprotection, bothand businessesinnovation, and consumers bycompleting enhancingthe markettwin access;transition;

Change 2

RemovedB. whereas the Draghi and Letta reports have identified regulatory complexities and the inconsistent implementation of EU rules as major obstacles to the competitiveness of the EU single market;

AddedB. 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;

RemovedC. whereas the Niinistö report’s observations on simplifying the EU’s defence industry highlight the strategic need to streamline regulations in key sectors to reduce fragmentation, accelerate procurement and foster European security and competitiveness;

AddedC. 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;

RemovedD. 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;

AddedD. 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;

RemovedE. 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 the views of businesses must be taken into account to ensure that EU policies support economic activity and create a positive environment for investment and innovation;

AddedE. 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;

AddedF. 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;

AddedG. 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;

AddedH. 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;

AddedI. 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;

AddedJ. 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;

AddedK. 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

Change 3

Changed1. Underlines that the EU is falling behind in terms of global competitiveness;competitiveness, particularly in certain sectors; recognises that shortcomings in implementation, regulatory fragmentation and unnecessary administrative burdens are keysome of the main factors in the EU’sEU lagging behind in investment, innovation, job creation and business opportunities; emphasises that the promotion, streamlining and simplification of rules and the implementationproper and timely implementation, as well as the effective enforcement, of common rules strengthen the single market, thereby boosting competitiveness, economic prosperity, employment, skills developmentdevelopment, high quality jobs, high environmental standards and innovation;

Change 4

Changed2. Recognises that in order to secure the EU’s prosperity, it is necessary to reduceimprove 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;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;

Change 5

Changed3. Emphasises that increased harmonisation, streamlined processes and the correct implementationimplementation, effective application, compliance, monitoring and enforcement of EU laws are vital for the proper functioning of the single market and forthe reachingachievement of crucial EU policy goals; welcomes the Commission’s planobjectives to boost competitivenesscompetitiveness, innovation and productivity through the simplification, streamlining and improved implementation and enforcement of EU rules; calls on the Commission to act upon the recommendations ofcontained 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

Change 6

Removed4. Underlines that regulatory streamlining and simplification aim to facilitate compliance processes, while upholding the EU’s core policy objectives and ensuring a stable and predictable regulatory environment for businesses;

Added4. 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;

Change 7

Changed5. Considers that a well-functioning single market, in which rules are implemented and enforced in a correctcorrect, 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 eliminateaddress 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;laws, demandswhile thatrecognising 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 ensureto thatsupport rulesMember areStates properlyin enforcedachieving acrossmore allharmonised implementation of EU law by further facilitating structured exchanges and mutual learning, including through the Memberorganisation States;of transposition workshops and the development and use of comparative tools and practices;

Change 8

Changed6. Asks the Commission to adopt measures 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 a mandatoryan early review clause (of three to five years),clause, without increasing administrative burdens in the process; callsbelieves forthat 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 allthose 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;

Change 9

Changed7. Urges the Commission to prepare high-quality impact assessmentsassessments, 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 existingcurrent rules, particularly concerning reporting requirements; insists that all impact assessments include a competitiveness check, specifically assessing the impact on smallSMEs, start-ups and mediummidcaps, enterprisesas (SMEs)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 start-ups;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;

Change 10

Removed8. Calls for impact assessments to be carried out systematically on significant amendments proposed by Parliament and the Council to the Commission’s proposals, as already agreed by the co-legislators in 2016;

Added8. 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;

Change 11

Changed9. Considers that it is vital to avoid overlaps and to address unclear definitions and inconsistencies amongbetween differentvarious legal acts, especially concerning single market legislation forcovering goodsgoods, services and services,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 existingcurrent legal framework must be prioritised over thebefore introductionnew oflegislation newis legislation;proposed;

Change 12

Removed10. Urges the Commission to ensure a more structured and transparent stakeholder consultation process, including a review of the expert groups system, to ensure inclusive and well-informed decision-making processes and to improve the quality of single market rules;

Added10. 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;

Change 13

Changed11. SuggestsCalls thaton the Commission to develop a mechanism to set aclear deadlinedeadlines for the publication of guidelines and enforcement measures before a regulation takes effect;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, and thatprovide clear timelines and sufficient notice periods for economic operators areand ensured;be in line with the mandate set by the co-legislators;

Change 14

Changed12. UrgesHighlights the Commissionimportance of start-ups and scale-ups in driving innovation and securing the co-legislatorsEU’s tofuture balanceleadership regulatoryin cautioncritical withindustries; innovation-friendlyurges policiesthe Commission and regulations,the thusco-legislators designingto ensure that future regulations withare designed to support innovation inand mind;to always uphold high standards; suggests the inclusion of regulatory sandboxes in all future regulations affecting innovative sectors, where relevant, with a particular focus on benefiting SMEs and start-ups; advocates forthe establishment of ‘EU innovation hubs’ across the Member States;

Change 15

Changed13. Welcomes the appointment of a Commissioner for Implementation and Simplification andSimplification; calls for the Commissioner to have adequate resources and authority to ensureensure, 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;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 ‘Omnibus’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 streamliningcompanies singleand marketshould legislation;not undermine agreed policy objectives;

Change 16

Changed14. 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

Change 17

Removed15. Calls on the Commission to strengthen existing enforcement instruments, such as SOLVIT and the Single Market Enforcement Taskforce, to tackle issues related to the functioning of the single market;

Added15. 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;

Change 18

Changed16. 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;sector, stresseswith an insufficient cross-border dimension of services in the single market; stresses, therefore, the need to ensure the consistent application of the Services Directive;Directive, demandswhose thatimplementation 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 Commissionability introduceto 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 sectoraland effective measures thatin key sectors for the single market which address the persisting unjustified barriers and enhance market integration,integration without compromising on social standards, while also maintaining regulatory coherence and preventing the fragmentation of single market rules;

Change 19

Removed17. Notes that inconsistency in the implementation of EU rules hampers the effective functioning of the single market, including the free movement of workers;

Added17. 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;

Removed18. Recalls the importance of common standards for the functioning of the single market; stresses the importance of safeguarding the EU standardisation system and maintaining its operational integrity;

Added18. Calls on the Commission to propose efficient legislative and non-legislative instruments to prevent new single market barriers when necessary and justified;

Removed19. Urges the Commission to reduce unnecessary reporting burdens by implementing targeted measures, such as extending reporting intervals, eliminating redundant obligations and ensuring proportionality in sector-specific requirements; stresses the importance of tailored approaches for SMEs and start-ups, of fostering a digital business environment, and of upholding the ‘once-only’ principle in order to streamline compliance procedures;

Added19. 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;

Removed20. Acknowledges and recognises the potential of the Commission’s intention to propose a new EU-wide legal regime, the ‘28th legal regime’, aimed at supporting the growth of smaller and innovative companies;