Twenty EU nations push for single market reforms in Brussels

Ahead of a meeting of industry ministers in Brussels on September 26, twenty EU member states initiated a call to eliminate barriers within the single market. This initiative arose from concerns that recent reports by former Italian Prime Ministers Enrico Letta and Mario Draghi did not adequately address the internal market's functioning. The reports, presented in April and September, were criticized for their limited focus on services and the single market, prompting the need for a more comprehensive approach. The non-paper, coordinated by Luxembourg and the Czech Republic, emphasizes the necessity for immediate and medium-term actions to enhance cross-border trade, particularly in services where national regulations still vary significantly. The initiative garnered support from a mix of smaller member states, as well as larger economies like Germany and Poland, indicating a broader consensus on the importance of this issue. In addition to discussing the single market, the ministers also addressed the ongoing debate surrounding state aid, particularly in light of the Temporary Crisis and Transition Framework (TCTF) that relaxed state-aid rules post-pandemic. Concerns were raised about the potential for increased national subsidies to distort competition within the EU, especially as larger economies like Germany and France have been significant contributors to state-aid spending. The discussions highlighted the need for a balanced approach to state aid, recognizing its role in enhancing competitiveness while avoiding a race to the bottom among member states. The outcome of these discussions could shape the future of the EU's economic landscape and its ability to compete globally.