The current state of Europe's Single Market is problematic and needs to function as intended. Companies need to overcome significant barriers to cross-border exchanges within the EU, hindering their ability to scale and compete internationally. Europe's underperformance is attributed to a fragmented internal market and outdated competition policies. Regulatory convergence has halted in most areas, and current policies have created more regulation and legal uncertainty. The EU's competition policy needs to be more cohesive and support innovation and business growth.
The Digital Market Act (DMA) and other policies prioritize protection over innovation, leading to potential patchwork competition rules. The EU's Strategic Autonomy paradigm must also promote innovation and technology leadership. Policy fragmentation must be eliminated to address these issues, and competition policy should focus on promoting market competition and supporting investments in innovation and advanced technologies.
The introduction highlights Europe's economic competitiveness challenges, such as an aging labor force and a need for qualified professionals. Language barriers and varying regulations impede cross-border trade and disadvantage the EU Member States. The Strategic Autonomy paradigm aims to enhance EU policymaking. Still, recent initiatives show a need for more commitment to strengthening the EU's internal market. EU policymakers emphasize superior EU values but must consistently apply them in Single Market policymaking.
EU laws lack a true level playing field and create confusion and uncertainty. To improve EU competitiveness, changes are needed in competition policy to prioritize market competition and support innovation and business growth. Policy fragmentation must be eliminated to foster a unified internal market.
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