Event Report: The Future of the Single Market

On 18th March 2024, together with our partner German Economic Institute (IW), we hosted an insightful discussion on the future of the European single market and its role in restoring European competitiveness moderated by  Sandra Parthie from the German Economic Institute. At the wonderful premises of the EU Economic and Social Committee, our panellists Andreas Schwab (Member of the European Parliament, EPP), Estelle Göger (Directorate General for Internal Market, Industry, Entrepreneurship and SMEs), Hubertus Bardt (German Economic Institute), and Philippe Adriaenssens (European Round Table for Industry) shared their ideas on how to put European Competitiveness back on the agenda.

After welcoming remarks from our director Beatrice Gorawantschy, our speakers emphasized the urgent need for a comprehensive and collective strategy to strengthen the single market.  A key component of this approach involves tackling regulatory constraints and fostering a business-friendly environment conducive to EU’s competitiveness. Especially dominant member states like Germany and France should continue to reduce their regulatory influence and advocate for a more balanced playing field between member states.

Indeed, the single market has demonstrated resilience during past crises, still vulnerabilities persist. These contribute to competitive disparities between the EU and its global counterparts, particularly the US and China. The EU is increasingly lagging behind compared to its global peers. Domestic regulations, administrative burdens and excessive regulation are hindering investments on the ground, making the EU less attractive for businesses. Deepening integration and enforcing initiatives as the Green Deal is often regarded as a shared responsibility of the European Commission and the member states. Some underline the EU, holding a referee role and ensuring fair competition without stifling innovation.

As concrete measures to bolster the single market's competitiveness our panellists identified improving investment conditions and harmonizing sectors such as energy and telecom as it is “the raison d’être of the Commission”. Even a more proactive approach is suggested, demanding that the EU is concretely supporting its industry similar to China’s proactive industry backing. An independent manufacturing industry is suggested as well to ensure EU’s strategic independence. To prevent further declines in competitiveness, the EU must strike a balance between regulation and business freedom. Possible steps include removing or facilitating reporting guidelines, improving the regulatory framework, and streamlining declarations for a common labour market. To alleviate burdensome reporting requirements some of our experts advocated for a confidence-based approach as well. Another crucial step for restoring market competitiveness is the continuous support of small and medium-sized enterprises (SMEs), e.g. establishing comprehensive enforcement task forces and relief packages.

Our event underscored the imperative for collective action to restore the European single market's competitiveness underlined by our panellists by referring to the current report as an “ice bath”. In the upcoming European legislative period, it will be crucial to reduce regulatory burdens and improve investment conditions to narrow the gap with global competitors. According to our panellists “EU companies have their heart for Europe.” The message is clear: Establishing a balance between regulation and business freedom is a critical factor in sustaining European competitiveness on the global stage. One of our panellists emphasized that this as well as the deepening of the single market will be “joint task that needs collective ownership.”

Leonie Schade hat bei der Erstellung des Dokuments mitgewirkt.