The European Parliament,

–  having regard to its resolution of 18 January 2023 on the 30th anniversary of the single market: celebrating achievements and looking towards future developments(1),

–  having regard to the report by Enrico Letta of 17 April 2024 entitled ‘Much more than a Market’ (the Letta report),

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

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

–  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 question to the Commission on the old challenges and new commercial practices in the internal market (O-000012/2025 – B10‑0264/2025),

–  having regard to Rules 142(5) and 136(2) of its Rules of Procedure,

A.  whereas the European Union’s ability to compete and prosper in the global economy is vital, especially amid the current geopolitical challenges and climate and other environmental crises; whereas its current, medium and long-term competitiveness relies on a fully integrated and efficient single market that allows European businesses to innovate and prosper and prioritises the reduction of administrative burdens;

B.  whereas the single market, comprising nearly 450 million citizens and 23 million businesses, generates a gross domestic product (GDP) of EUR 17 trillion, positioning the EU among the world’s three largest economies and contributing approximately one-sixth of global economic output;

C.  whereas the Draghi report demonstrated that compliance costs resulting from various pieces of legislation remain very high for European companies, therefore hindering European innovation capacity;

D.  whereas it remains crucial to improve the functioning of the single market by addressing persisting fragmentation through common, harmonised EU policies, more efficient implementation and enforcement, and the simplification of EU rules; whereas reducing administrative burdens and costs, especially for small and medium-sized enterprises (SMEs), can help foster innovation and support European businesses; whereas unlocking the full potential of the single market requires overcoming persistent barriers to the free movement of goods and services;

E.  whereas the rapid expansion of digital platforms and e-commerce has introduced new market dynamics and whereas evolving trends in global e-commerce are exerting additional pressure on customs controls, market surveillance and consumer protection authorities;

F.  whereas geopolitical shifts and global economic transformations are reshaping supply chains, requiring the EU to adapt its single market policies; whereas the EU has set the highest standards for product safety and consumer protection, both offline and online;

G.  whereas attention has been drawn to a growing number of cases reported across the EU in which goods and services offer reduced quantity or quality, despite stable or rising prices;

Old and enduring challenges

1.  Reaffirms that the single market has been a cornerstone of European economic integration, enabling the free movement of goods, services, capital and people; stresses, however, that there are long-standing and emerging challenges that necessitate ambitious reforms without harming European competitiveness or imposing unnecessary administrative burdens on companies; calls on the Commission and the Member States to accelerate efforts towards implementing these reforms and to eliminate remaining unjustified obstacles to the free movement of goods and services, while ensuring a high level of consumer protection;

2.  Calls on the Commission and the Member States to maintain strong consumer protection while also providing for competition rules that are innovation-friendly, future-proof and proportionate; emphasises the need to ensure legal certainty and consistency and minimise regulatory complexity and fragmentation, which could disproportionately affect SMEs, start-ups and scale-ups;

3.  Highlights that ongoing barriers and regulations have constrained the development of the single market, as noted in the Draghi report; calls for a shift towards a regulatory approach that empowers companies to grow, innovate and lead internationally, thereby restoring the single market as a true engine of growth and competitiveness;

4.  Calls on the Commission to ensure that future legislative initiatives are consistently guided by the strategic priorities outlined in its communications and competitiveness strategy;

5.  Underscores that, as demonstrated by the Letta and Draghi reports, there is still untapped potential in the services sector; calls for further action in this sector to address the significant obstacles that persist, starting from setting ambitious targets in the upcoming single market strategy; notes that services account for three quarters of EU GDP, represent two thirds of employment and create 9 out of 10 new jobs in the EU economy; notes also, however, that services are still the least developed segment of the EU single market;

6.  Welcomes the proposal for a regulation on a public interface connected to the Internal Market Information System for the declaration of posting of workers and amending Regulation (EU) No 1024/2012 (COM(2024)0531), which should lead to simplification and strengthened enforcement; notes also that digitalisation could significantly reduce administrative burdens for cross-border services and ensure better access for businesses and consumers; calls, in this regard, for a single declaration portal and the digitalisation of A1 forms for cross-border services;

7.  Stresses the importance of the effective recognition of professional qualifications and the removal of unjustified barriers to the free movement of professionals in order to make EU professional services globally competitive in future decades; encourages the Commission to remain vigilant in pursuing infringement procedures where Member States do not comply with EU legislation on the recognition of qualifications;

8.  Stresses that single market rules should safeguard access to public services and preserve consumer rights as well as other overriding reasons of public interest; adds that any assessment to evaluate restrictions in the single market for services should include qualitative criteria;

9.  Notes the role that EU public procurement can play in overcoming barriers to market entry, supporting sustainable and resilient industrial ecosystems, high quality jobs and value creation in the EU;

10.  Acknowledges that the new legislative framework (NLF) has contributed to consistency in EU product legislation and that since its adoption, the industry sector, supply chains and products have experienced important transformations in the light of the digital and green transition, but also changes in market dynamics; notes that the 2022 evaluation of the NLF identified critical challenges, such as potential foreign influence, illegal practices, inadequacies in addressing digitalisation and the circular economy, and potential updates to obligations and definitions for certain economic operators to reflect new market realities;

11.  Stresses that addressing these issues and making the NLF future-proof is essential to ensure coherence, reduce costs and ensure free movement of goods; calls, therefore, for an update to the NLF in order to streamline product rules, promote digitalisation and simplify compliance and market surveillance procedures; considers that the NLF should promote the use of Digital Product Passports as a means of demonstrating product conformity and complying with information requirements;

12.  Calls on the Commission and the Member States to simplify EU rules and make them easier to implement, and to significantly reduce administrative burdens, in particular for SMEs, which play a vital role in sustaining local communities and economies; stresses the importance of ensuring legal certainty and consistency for businesses, as well as predictability for long-term investments, which are essential to boost competitiveness, innovation and resilience and to deliver fast and meaningful improvements for consumers and businesses; calls, furthermore, on the Member States to prevent actions that could compromise the level playing field in the internal market;

13.  Calls on the Commission to facilitate the activities of SMEs and small mid-caps within the single market, notably with a dedicated simplification omnibus;

14.  Recognises that inconsistent and fragmented enforcement of EU laws across the Member States continues to distort competition and undermine the single market’s integrity; adds that primary responsibility for enforcement of EU rules lies with the Member States; invites the Commission to make full use of its enforcement powers; calls for improved monitoring and enforcement mechanisms at EU level, such as harmonised rules on minimum levels of checks, harmonised methodologies to conduct these checks and joint inspections, in order to ensure the uniform application of EU law and, where applicable, swift redress for consumers;

15.  Stresses the importance of maintaining a competitive and dynamic economic environment by safeguarding consumers’ rights and enforcing digital competition rules to address unfair business practices that distort market conditions; calls, furthermore, on the Member States to increase the capacity of market surveillance authorities and customs authorities to ensure effective enforcement of single market rules, particularly in respect of e-commerce and imports from non-EU countries;

16.  Recalls that territorial supply constraints in the retail and wholesale segments fragment the single market, limit consumer choice and contribute to significant price disparities across the Union, particularly affecting the prices of basic consumer goods; highlights that while competition law penalises some of these practices effectively, many fall outside its scope; calls, therefore, on the Commission to propose measures to address the issue, including stronger enforcement against anti-competitive distribution agreements, in order to safeguard fair competition, thereby ensuring the integrity of the single market;

17.  Calls on the Commission to investigate the causes for the differentiated levels of the inflation of basic goods and consumer price increases observed in some EU Member States;

18.  Considers that the single market is a key tool in times of crisis if the Member States can act in a coordinated way; considers that the recently adopted Internal Market Emergency and Resilience Act(2) will be crucial to ensure coordination in order to prevent shortages and ensure the smooth functioning of the single market, including the free movement of essential goods and services throughout the EU;

19.  Calls on the Commission to empower consumers to easily exercise their passenger rights by establishing national enforcement bodies, which should be granted harmonised investigation and enforcement powers and which should be able to efficiently process individual complaints and related fines;

20.  Highlights that e-commerce measures targeting geo-blocking, notably the Geoblocking Regulation(3), have been successful in creating a framework for a less fragmented single market and enhancing consumer choice for online shopping; notes with concern that the implementation of the regulation has been inadequate;

21.  Notes that the European Accessibility Act(4) will become applicable across all EU Member States as of 28 June 2025; stresses the importance of its full and effective implementation by the Member States in order to ensure the harmonisation of accessibility requirements for products and services, thereby guaranteeing their accessibility to persons with disabilities across the EU internal market;

Emerging commercial practices

22.  Highlights that the rapid expansion of digital platforms and e-commerce has introduced new market dynamics and has created advanced opportunities and challenges and risks for users; acknowledges that the Digital Markets Act(5) (DMA) and the Digital Services Act(6) (DSA) constitute key legislative instruments ensuring fair competition, contestability and fairness in digital platforms, while also fostering consumer protection and a safer, more trustworthy and more transparent digital environment in the digital economy; calls for proper enforcement of the EU’s new technology legislation to ensure genuine, autonomous and informed consumer choice, protection and fair competition;

23.  Considers it essential to ensure the effective implementation and enforcement of these two legislative acts and urges the Commission to conclude its ongoing investigations in the framework of the DSA and the DMA;

24.  Stresses that the implementation of the DSA must fully respect freedom of expression; underlines that actions against illegal content must not restrict lawful speech and calls for transparent enforcement to protect an open and democratic digital space;

25.  Calls on the Commission and the Member States to ensure that the Artificial Intelligence (AI) Act(7) maintains a risk-based, innovation-friendly approach, ensuring that compliance requirements are proportionate to the actual risks posed by AI applications while respecting the need to ensure a high level of protection of health, safety and fundamental rights;

26.  Welcomes the Commission’s ‘digital fairness’ fitness check of consumer law and the upcoming public consultation; underlines that some issues remain unaddressed concerning the protection of consumers online, leading to an imbalance between consumers and traders within the digital economy; calls on the Commission to address these issues in the upcoming Digital Fairness Act; believes that digital addiction, online gambling, protection of minors online and persuasive technologies used by online actors, such as targeted advertising, influencer advertising and dark patterns, should fall under the Digital Fairness Act, which should close legal loopholes and be consistent with current legal instruments in order to better protect consumers online, taking into account the need to avoid unnecessary regulatory burdens;

27.  Notes that evolving trends in global e-commerce and supply chain restructuring are placing greater pressure on customs controls, market surveillance and consumer protection authorities; highlights that the volume of unsafe and illicit products sold on e-commerce platforms, in particular from non-EU countries, has been increasing in recent years; highlights the significance of Digital Product Passports in these processes; calls, therefore, for a reinforced market surveillance framework and a revision of the Consumer Protection Cooperation Regulation(8) and calls on the Council to swiftly adopt its position in order to enable the adoption of the revised Union Customs Code and the establishment of an EU customs authority in 2026;

28.  Calls on the Member States to allocate sufficient technical, human and financial resources to national authorities; calls on the Member States and the Commission to ensure sufficient funds and expertise to strengthen customs authorities and market surveillance across the Union and to intensify joint activities and EU testing;

29.  Emphasises the need to strengthen consumer protection in both online and offline markets, ensuring transparency in advertising and pricing, especially concerning dynamic pricing, ensuring fair business practices and stronger safeguards against fraud to foster consumer trust in cross-border commerce and the highest level of protection;

30.  Stresses that attention has increasingly been drawn to instances where goods and services offer less in terms of quantity or quality while prices remain the same or increase; calls on the Commission to assess the scale and underlying causes of such practices and to explore appropriate measures to enhance transparency and consumer awareness;

31.  Underlines that environmental sustainability and fair-trade considerations are increasingly shaping commercial practices by playing an important role in consumers’ purchasing decisions and consequently driving businesses towards sustainability; adds that transparency and information for consumers on environmental aspects as well as on socially-responsible and ethical production processes allow consumers to adopt sustainable consumption patterns;

32.  Calls on the Commission and the Member States to maintain their level of ambition in this regard and work further on EU-wide labelling schemes; recalls that the objective of the Green Claims Directive is to establish a tool to protect consumers against greenwashing by establishing requirements for substantiation and verification;

33.  Highlights the need to further combat misleading advertising and greenwashing and to strengthen the second-hand market; notes, however, that restrictive sustainability rules may have a negative impact on European competitiveness;

34.  Highlights that some growing trends in e-commerce raise concerns with regard to goods from non-EU countries not fulfilling EU safety and sustainability requirements, thus negatively impacting SMEs in the EU; welcomes the Commission communication on ‘A comprehensive EU toolbox for safe and sustainable e-commerce’ and asks the Commission to swiftly implement the recommendations contained therein;

35.  Emphasises that harmonised technical standards are essential for the free movement of goods within the single market, ensuring product safety, quality and performance across the Member States; highlights that standards must reflect the interests, policy objectives and values of the Union by taking into account the views of all stakeholders; adds that the recent Court of Justice of the European Union ruling(9) acknowledges the added value of harmonised standards that form part of EU law because of their legal effects and establishes that they should be made freely accessible; underlines the need to improve the agility of the standardisation framework, particularly for emerging green and digital value chains, and to help industry to maintain competitive positions in key technology markets;

36.  Considers that the EU must increase its efforts to set up a new mechanism with the Member States and national standardisation bodies to share information, coordinate and strengthen the European approach to international standardisation activities; calls for swift action to update the EU standardisation framework in order to speed up the standardisation process to ensure the rapid publication of harmonised standards that grant presumption of conformity and are aligned with international standards to support global trade while encouraging greater industry participation, particularly from SMEs;

37.  Stresses the need to reinforce the external dimension of the single market to safeguard the EU’s strategic autonomy and global influence and welcomes the gradual integration of EU candidate countries to the single market with a view to their future EU membership; emphasises that the EU’s high regulatory standards can serve as a global benchmark and must be effectively enforced to ensure a level playing field for European businesses; calls on the Commission to intensify regulatory dialogues and political cooperation with other relevant non-EU countries in order to identify common challenges and try to build joint actions, especially concerning e-commerce, digital rules and consumers;

38.  Reiterates its call for innovative, complementary and flexible interaction between the ongoing work on the implementation of the EU-Ukraine Association Agreement currently in force and the accession negotiation process, thus allowing for Ukraine’s gradual integration into the EU single market and sectoral programmes;

Conclusions

39.  Recognises that geopolitical tensions, climate change, challenges to EU competitiveness and economic disparities pose significant risks to the integrity of the single market; calls for a robust, coordinated and strategic policy response to strengthen the single market;

40.  Calls for the continued evolution of the single market to address both remaining unjustified barriers and emerging commercial challenges; takes the view that eliminating regulatory fragmentation, promoting simplification, significantly reducing administrative burdens, enhancing enforcement and ensuring resilient supply chains are critical to maintaining the EU’s competitive edge and fair market conditions and enhancing the single market; underlines the importance of consulting all relevant stakeholders in these processes;

41.  Emphasises the importance of digital transformation, the circular economy and adaptability to global economic shifts in securing the EU’s long-term economic dynamism;

42.  Reiterates that strengthening the internal and external dimensions of the single market is essential for preserving the EU’s strategic autonomy and competitiveness;

43.  Urges the Commission, therefore, to reflect the foregoing in the forthcoming new single market strategy, scheduled for June 2025, in the 2030 consumer agenda, scheduled for the end of 2025, and in the Digital Fairness Act, scheduled for 2026;

o
o   o

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

(1) OJ C 214, 16.6.2023, p. 8. (2) Regulation (EU) 2024/2747 of the European Parliament and of the Council of 9 October 2024 establishing a framework of measures related to an internal market emergency and to the resilience of the internal market and amending Council Regulation (EC) No 2679/98 (OJ L, 2024/2747, 8.11.2024, ELI: http://data.europa.eu/eli/reg/2024/2747/oj). (3) Regulation (EU) 2018/302 of the European Parliament and of the Council of 28 February 2018 on addressing unjustified geo-blocking and other forms of discrimination based on customers’ nationality, place of residence or place of establishment within the internal market and amending Regulations (EC) No 2006/2004 and (EU) 2017/2394 and Directive 2009/22/EC (OJ L 60I, 2.3.2018, p. 1, ELI: http://data.europa.eu/eli/reg/2018/302/oj). (4) Directive (EU) 2019/882 of the European Parliament and of the Council of 17 April 2019 on the accessibility requirements for products and services (OJ L 151, 7.6.2019, p. 70, ELI: http://data.europa.eu/eli/dir/2019/882/oj). (5) Regulation (EU) 2022/1925 of the European Parliament and of the Council of 14 September 2022 on contestable and fair markets in the digital sector and amending Directives (EU) 2019/1937 and (EU) 2020/1828 (OJ L 265, 12.10.2022, p. 1, ELI: http://data.europa.eu/eli/reg/2022/1925/oj). (6) Regulation (EU) 2022/2065 of the European Parliament and of the Council of 19 October 2022 on a Single Market For Digital Services and amending Directive 2000/31/EC (OJ L 277, 27.10.2022, p. 1, ELI: http://data.europa.eu/eli/reg/2022/2065/oj). (7) Regulation (EU) 2024/1689 of the European Parliament and of the Council of 13 June 2024 laying down harmonised rules on artificial intelligence and amending Regulations (EC) No 300/2008, (EU) No 167/2013, (EU) No 168/2013, (EU) 2018/858, (EU) 2018/1139 and (EU) 2019/2144 and Directives 2014/90/EU, (EU) 2016/797 and (EU) 2020/1828 (OJ L, 2024/1689, 12.7.2024, ELI: http://data.europa.eu/eli/reg/2024/1689/oj). (8) Regulation (EU) 2017/2394 of the European Parliament and of the Council of 12 December 2017 on cooperation between national authorities responsible for the enforcement of consumer protection laws and repealing Regulation (EC) No 2006/2004 (OJ L 345, 27.12.2017, p. 1, ELI: http://data.europa.eu/eli/reg/2017/2394/oj). (9) Judgment of 5 March 2024, Public.Resource.Org Inc. v Right to Know CLG, C‑588/21 P, EU:C:2024:201.