A Single Market fit for the 21st century

Offering a much larger choice of products and services, lower prices, and plenty of business opportunities, the EU Single Market is one of the greatest achievements of the European Union. However, work still needs to be done to allow EU citizens and businesses to make the most out of it. To unleash the full potential of the Single Market, the European Commission adopted a Single Market strategy in October 2015. This set of ambitious actions will help us create new opportunities for businesses, consumers and professionals, and make the Single Market fit for the 21st century.

What have we achieved so far?

The EU Single Market is widely recognised as one of the EU’s biggest assets. With a GDP of €14 trillion, the EU is the world’s largest economy. It contains over 500 million people and 21 million small and medium-sized enterprises (SMEs). It offers easier access to many products and services, lower prices, greater commercial opportunities, and one of the highest standards of safety and environmental protection in the world.

Nowadays, the EU Single Market faces many new challenges. The number of Member States in the EU has risen from 12 to 28. The Single Market is a lot bigger and much more diverse. More people want to communicate and buy online. More businesses want to go international. If we want a Single Market that allows business and consumers to make the best out of it, we need to adapt it to the 21^st century.

Fighting against unfair discrimination between consumers

People should be free to shop around for the best quality, price or service, regardless of where they come from and how they choose to buy. In reality, this is often not possible. Many consumers and businesses are discriminated against when buying goods or services online and offline based on their country of residence or nationality. This discrimination prevents consumers from making use of the Single Market's full potential and undermines their trust in it. The Commission will take action to ensure that consumers seeking to buy services or products in another EU country, be it online or in person, get the same choice of price, sales conditions, or delivery options available.

Single Market for innovative start-ups and SMEs

Europe is not short of innovative ideas, but innovative solutions are too often not commercialised in Europe because entrepreneurs cannot raise the venture capital needed to bring their ideas to the market. We need a Single Market in which entrepreneurs can innovate and expand. More and faster access to finance, simpler VAT regulations, SME-friendly intellectual property rules and clearer company law will help small businesses in Europe thrive.

New business models emerging in the EU

The emerging collaborative economy is changing the way services are provided and consumed. On one hand, it leads to greater choice for consumers and creates new opportunities for innovative entrepreneurs. On the other hand, there are also issues related to consumer rights and safety, taxes and labour law that have to be looked at. Right now, the collaborative economy finds itself in a grey legal zone. Each EU country has a different approach, so the same business can be allowed in one city, but prohibited in another. This leads to confusion for both consumers and businesses. EU-wide guidance will clear the way for new business models, whilst making sure that consumer protection, taxation and labour law are respected.

Unfinished business...cross border services

Companies and professionals still find it difficult to provide their services across borders. Diverging national rules and time-consuming procedures put people off expanding their businesses or looking for jobs in other EU countries. The result is less choice and higher prices for customers and also for industry - the main consumer and provider of services.

To reduce barriers in important sectors, such as business services and construction services, the Commission will propose to develop a new services passport. This document will make it easier for service providers to access markets in other EU countries. The Commission will also look at regulated professions and, together with Member States, will identify concrete reforms needed to improve access to these professions.

Bureaucracy and red tape are also a major problem for companies trying to bid on tenders in other EU countries. As public procurement in the EU represents around 19% of GDP, the strategy aims to make public procurement rules more efficient and transparent, and bring the best value for taxpayers' money.

New Single Market Strategy

The Single Market Strategy is building on the strength of the EU Single Market, fully unleashing its potential and moving it forward. It will help us to:

• create new opportunities for consumers, professionals and businesses.
• encourage businesses to modernise and innovate.
• make sure that these new opportunities and this modernisation actually happen.

The Strategy is closely linked to the Labour Mobility Package and goes hand in hand with efforts to strengthen the EU's industrial base, boost investment, improve access to finance, ensure the free flow of energy and meet the challenges of the digital economy.