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BUSINESSES CALL FOR FRESH POLITICAL
ENGAGEMENT TO RENEW ECONOMIC
INTEGRATION IN THE SINGLE MARKET
Joint statement by BusinessEurope, DIGITALEUROPE,
ERT, Eurochambres and EuroCommerce.
27 June 2022
In the wake of the economic fallout created by the Russian invasion of Ukraine, rising energy prices, the
ongoing COVID pandemic and Brexit, the time is ripe for the renewal of European integration. This is the best
way to generate economic growth, secure employment and promote social inclusion for future generations.
On top of being one of the pillars of peace and prosperity, the Single Market is the bedrock of the EU economy
and the foundation upon which many of the EU’s current objectives are being built. It is instrumental to
our ability to absorb external shocks, leverage geopolitical power, strengthen open strategic autonomy,
drive recovery and deliver on the green and digital transitions. The business community recognises its own
responsibility and fully embraces the constructive contribution it can make to address the current challenges.
For its part, the public sector has an important role to play, by reducing market fragmentation and removing
red tape including for cross-border business operations. Jumpstarting the motor of Single Market is the
best opportunity we have; and it is a responsibility which lies fully in the hands of governments. It should be
undertaken urgently for the sake of creating new growth and jobs, as well as avoiding social hardship in the
coming decade.
According to the European Commission’s estimate, the benefits of removing barriers to the Single Market
for goods and services could amount to €713 billion by the end of 2029; (1) a sum similar to the investments
foreseen under the ‘Next Generation EU’s recovery package. Moreover, igniting the integration engine is
budget-neutral and would not pose any additional burden on taxpayers. Prioritising the Single Market is
low-hanging fruit in times of depleted national budgets.
WHAT WE ARE CONCERNED ABOUT
The signatories of this statement are deeply concerned about the negative prospects for the European
economy. More than that, we are troubled by the European Union’s lack of initiative to really deepen the Single
Market in the past decade.
Businesses no longer experience the Single Market as a true free trade area. EU legislation too often allows
for differentiated transposition in EU Member States and the Commission’s enforcement policy is lacking
teeth against Member States which introduce national rules or administrative requirements leading to further
market fragmentation. Companies cannot scale-up to other countries without facing a wide variety of barriers
and their innovative drive is hampered by the myriad of technical limitations, undermining the EU’s capacity
to be globally competitive. Especially SMEs are struggling with the growing number of compliance obligations
and the costs that are associated with them, which is in turn hampering their ability to be competitive. Policy-
makers at EU and national level should resist the temptation to regulate every element of the economy
and instead aim to better evaluate and reduce the ever-expanding list of demands and requirements on
companies. Otherwise, the EU becomes less attractive for businesses.
We see a clear discrepancy between, on the one hand, the lofty ambitions to “further complete the Single
Market” as expressed in the many European Council conclusions,(2) European Parliament resolutions and
Commission Communications over the past decade, and, on the other hand, the lack of determination for
effective follow-up, implementation and enforcement, by Member States and the European Commission alike.
This real lack of political ambition and administrative inaction have a cost on the prosperity of Europeans and
put a serious brake on Europe’s economic recovery in the coming decade.
JOINT INDUSTRY STATEMENT ON THE SINGLE MARKET - JUNE 2022 2
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WHAT THE EUROPEAN UNION NEEDS
The EU has a Treaty obligation to ensure “an area without internal frontiers” and that “the conditions
necessary for the competitiveness of the Union’s industry exist (…) in accordance with a system of open and
competitive markets.” (Articles 26 and 173(1) TFEU). This is why the EU should uphold the Treaty provisions
on free movement and prioritise the transformation of the Single Market so it is the most attractive place to
innovate, invest and do business in the world.
We need a 180-degree shift in the way politicians and the public administrations across the EU-27 deal with
the Single Market today. Instead of undermining it, Member States should really commit to deepening the
Single Market in the collective interest and to strengthen the EU’s place in the world.
Because the stakes are so high and the gains so tangible, we call upon the European Commission –
in cooperation with the EU Member States and European Parliament – to spearhead the design of an
all-encompassing programme to deepen the Single Market, overcome national interests and stimulate
genuine progress in the free movement of goods, services, capital, people and data.
KEY RECOMMENDATIONS
Strategic
→ The European Commission, European Parliament and Member States’ governments need to reinstate
the idea of a Single Market as an economic union for free trade without internal obstacles and bring the
freedoms back to the top of the political priorities.
→ Remove all barriers to cross-border business operations and intra-EU investments, forming a fully-fledged
Single Market for all economic activities. It means developing a true Union for Energy, Environment,
Digital, Retail, Banking & Capital, Health as well as Defence, amongst others.
Policy-making
→ Transcend the currently existing Single Market governance mechanisms and orient sufficient capacity in
the public administration to removing all obstacles.
→ Adjust the Commission’s policy programming towards improving the Single Market. The Commission
Work Programme should spell out concrete actions to address behaviour or measures undermining the
integrity of the Single Market.
→ Build a real Digital Single Market in which data can flow freely across borders (“fifth freedom”) and enable
true digital business models that can serve the whole EU market without additional requirements.
→ Develop an Energy Union underpinned by the principles of the Single Market in order to deliver on the
green transition, and security of supply objectives.
→ Create a true Single Market for services by elimination of unjustified or disproportionate regulatory and
administrative barriers and simplification of access-to-market, inter alia through better synergies with
sustainability policies and effective freedom of establishment for all businesses in the EU.
→ Preserve all the principles of the New Legislative Framework for products that has been a success for
product regulation in Europe for decades.
→ Use Key Performance Indicators on intra-EU trade in goods and services to drive progress.
JOINT INDUSTRY STATEMENT ON THE SINGLE MARKET - JUNE 2022 32
Regulatory
→ Strengthen the Better Regulation agenda with a Single Market test that serves as a safety net. This test
should be a strong legal and institutional filter against any EU level proposals which potentially allow
for market fragmentation. Any EU initiative should go hand in hand with the unconditional guarantee of
freedom to trade in the Single Market.
→ Ensure a regulatory regime that either provides full harmonisation law or effectively applies country of
origin principles based on a culture of trust among Member States and their administrations. This is
necessary to address over-implementation and gold-plating. National authorities should fully respect the
principle of mutual recognition and stop restricting market access based on national rules.
→ Only regulate what is necessary. Avoid excessive regulation which often creates preconditions for market
fragmentation. Strongly commit to the 1-in-1-out principle based on proper evaluation of compliance
costs and simplification, and prioritise a better and leaner implementation of the already existing legis-
lation before proposing new initiatives.
→ Avoid disproportionately prescriptive regulation, inter alia the use of delegated acts beyond non-essential
technical issues or as replacement to market-driven standards.
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ANNEX
Examples of barriers in the Single Market and further recommendations:
BusinessEurope
BusinessEurope, Examples of Single Market barriers for businesses, 10
https://www.businesseurope.eu/sites/buseur/
May 2022
files/media/facts_and_figures/2022-05-10_sin-
gle_market_barriers_update_-_all.pdf
BusinessEurope, Letters to Commissioner Breton, 16 April 2021 and 22
https://www.businesseurope.eu/sites/buseur/
September 2021
files/media/public_letters/imco/2021-04-16_
mbe-t.breton_-_singlemarketenforcementtask-
force.pdf
&
https://www.businesseurope.eu/sites/buseur/
files/media/public_letters/imco/2021-09-22_
mbe-t.breton_-_single_market_aspects_in_the_
industrial_strategy.pdf.
BusinessEurope, Position Paper on Single Market Governance Package of
https://www.businesseurope.eu/sites/buseur/
March 2020, 10 June 2020
files/media/position_papers/internal_mar-
ket/2020-06-10_businesseurope_position_paper_
single_market_governance_package.pdf
DIGITALEUROPE
Single Market barriers continue limiting the EU’s potential for the twin
https://www.digitaleurope.org/wp/wp-content/up-
transition : a compilation of case studies, March 2022
loads/2022/03/Examples-of-Single-Market-barri-
ers_DIGITALEUROPE-Industrial-Forum-TF1-con-
tribution.pdf
ERT
ERT Competitiveness and Industry Benchmarking Report 2022
https://ert.eu/documents/2022bmr/
Renewing the Dynamic of European Integration – Single Market Stories by
https://ert.eu/single-market/
Business Leaders, December 2021
Eurochambres
Business Survey – The state of the Single Market, Barriers and Solutions,
https://www.eurochambres.eu/wp-content/up-
December 2019
loads/2020/02/REPORT_ON_SINGLE_MARKET_
OBSTACLES_2019-2019-00290-01.pdf
EuroCommerce
Single Market Barriers Overview, 27 June 2022
https://www.eurocommerce.eu/me-
dia/206101/2022.06.27%20-%20Single%20Mar-
ket%20Barriers%20Overview%202022.pdf
Retail and wholesale eco-system – contribution to establishing a transition
https://www.eurocommerce.eu/me-
pathway.
dia/203810/2021.10.19%20-%20Retail%20
and%20wholesale%20transition%20pathways%20
final%20with%20annexes.pdf
Barriers to the single market undermine EU recovery and supply chains
https://www.eurocommerce.eu/resource-centre.
aspx#PressRelease/14012
JOINT INDUSTRY STATEMENT ON THE SINGLE MARKET - JUNE 2022 5
Endnotes:
(1) European Commission, 10 Mar
ch 2020, A new Industrial Strategy for a green and digital Europe (europa.
eu).
(2) A recent example is in the European Council Conclusions of 24-25 Mar
ch 2022, https://www.consilium.
europa.eu/en/press/press-releases/2022/03/25/european-council-conclusions-24-25-march-2022/.
JOINT INDUSTRY STATEMENT ON THE SINGLE MARKET - JUNE 2022 6
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