09.02.2026
The European Commission has published an annual report assessing the functioning of the Single Market and the competitiveness of businesses in 2025.
According to the report, a well-functioning single market remains the foundation of the European economy and the main tool for building sustainable competitiveness. The dismantling of the ten identified internal market barriers is important to improve Europe’s position in a tightening geopolitical context.
The report is based on 29 indicators, including market integration, investment growth and business opportunities. Six of the indicators show positive changes in, for example, the recognition of skills between member states and the increase in the number of investments supporting the industrial transformation of the InvestEU‑ programme. In negative indicators, for example, the learning outcomes of 15-year-olds have weakened in PISA surveys, and private investment has decreased relative to GDP. In addition, there are growing labour shortages in the green transition professions.
A new phase has been launched in dismantling barriers to the single market, both at EU level and in the Member States. The Single Market Strategy has identified the so-called Terrible Ten -obstacles that hamper the environment and which the Commission has set as an urgent priority to remove. Obstacles arise both from national practices and from regulation at EU level and therefore require close multi-level dialogue to overcome them.
Ten obstacles identified by the Commission:
- Complex procedures for business start-ups and businesses
- Complexity of EU regulation
- Insufficient commitment of member states to the single market
- Problems with the recognition of cross-border professional qualifications
- Long standardisation processes that slow down innovation and competitiveness
- Fragmentation of packaging, labelling and waste legislation
- Obsolete harmonised product standards and shortcomings in product compliance
- Restrictive and divergent national service regulations
- Heavy procedures for the temporary posting of workers
- Regional supply constraints
