On 21 May, European Commission Executive Vice-President for Prosperity and Industrial Strategy Stéphane Séjourné unveiled the new Single Market Strategy, a comprehensive plan designed to simplify trade, foster growth for businesses, and strengthen Europe’s economic backbone. This initiative seeks to reinforce the EU’s internal market by simplifying regulatory frameworks, eliminating key trade barriers, and enhancing the competitiveness of European businesses. Moreover, the initiative outlines the Commission’s plans to streamline the rules for establishing companies, reduce inconsistent national regulations for services, and facilitate the posting of workers.
Mr. Séjourné presented the initiative as a two-part strategy: a political roadmap aimed at eliminating major internal market barriers and a legislative package designed to assist mid-sized companies by reducing bureaucratic obstacles. The Commission Vice-President described this package as the EU’s most significant economic initiative in years.
A political Roadmap
Rather than proposing new legislation, the Commission’s Single Market Strategy presents a roadmap aimed at addressing ten of the most significant barriers hindering European businesses. The identified obstacles include fragmented packaging standards, differing rules on professional qualifications, cumbersome processes for posted workers, and delays in implementing common European standards. The Commission’s goal is to encourage Member States to work together to eliminate these barriers.
Fourth Omnibus package
Alongside the strategy, the Commission introduced the Fourth Simplification Omnibus, amending eight pieces of EU legislation to reduce compliance burdens. At its heart is the creation of a new “small mid-cap” category, covering firms with between 250 and 750 employees and up to €150 million in turnover or €129 million in assets.
These companies—roughly 38,000 across Europe—will now benefit from partial exemptions under key EU laws, including the General Data Protection Regulation (GDPR), the Markets in Financial Instruments Directive, and the Batteries Regulation. Smaller companies with under 250 staff already enjoy exemptions from these rules, but growing firms previously faced what Séjourné called the “brutality” of sudden compliance thresholds.
Conclusion
The success of the Commission’s new strategy will ultimately depend on Member States’ willingness to follow through. While the roadmap and legislative package offer a clear direction for boosting competitiveness and reducing burdens on businesses, implementation will require coordinated national action. If effectively carried out, the strategy could mark a turning point for the Single Market—transforming it into a more integrated, resilient, and business-friendly space at the heart of the European economy.
