Single Market reforms must reach local and regional level or risk failing citizens

The European Committee of the Regions (CoR) has adopted unanimously at its plenary session two opinions urging the European Union to improve and simplify the Single Market and to place local and regional authorities at the heart of both its broader reform strategy and its funding programme, especially in view of the adoption of the EU long-term budget 2028-34.

More than a year after the reports prepared by Mario Draghi and Enrico Letta issued urgent calls for action on competitiveness, investment, and simplification, the opinions lament that little has changed for citizens and businesses. While the Single Market remains one of the EU's greatest achievements, the opinions argue that persistent barriers continue to hold back its full potential.

Regions and cities are not peripheral actors in the Single Market; they are indispensable partners in ensuring its smooth functioning and must be recognised and empowered as such. This is the message the CoR sends to both the European Commission and Member States through the opinions drafted by rapporteurs Emma Blain (IE/EPP), Dublin City Councillor, and Lorenzo Galligani (IT/ECR), Pistoia City Councillor, adopted at the CoR plenary session on 4 March.

SMEs left without a dedicated budget line

The opinion prepared by rapporteur Blain welcomes the European Commission's proposal establishing the Single Market and Customs Programme 2028-2034 and calls for local and regional administrations to be systematically included in the enforcement of Single Market policies, particularly in border regions. The CoR emphasises that the effective functioning of customs procedures is crucial for regional economic vitality.

The opinion also stresses that Cohesion Policy is fundamental to the functioning of the Single Market, not just an additional condition for its success, and urges that the programme's implementation fully reflect this.

CoR members highlight that robust EU anti-fraud measures are essential for safeguarding public resources that benefit regions and cities and note that fraud involving EU funds undermines local development, delays infrastructure projects and erodes citizens' trust in public institutions.

Lastly, local and regional authorities regret that the programme does not specify a dedicated Small and Medium Entreprises (SMEs) funding programme, nor a clearly ring-fenced SMEs budget line, as was the case under the preceding Single Market Programme 2021-2027.

A Single Market exposed: resilience and cohesion at stake

Recent economic and geopolitical crises have exposed the Single Market's vulnerabilities and underscored the importance of strategic autonomy in critical sectors. In an opinion drafted by rapporteur Galligani, the CoR stresses that a stronger, more crisis-resistant Single Market is essential not only for economic growth, but also for the day-to-day stability of European regions and cities, which depend on it for investment, job creation and innovation.

Cities and regions welcome the European Commission's proposal to reduce administrative burdens by 25% for all companies and by 35% for SMEs and call for the swift adoption of the omnibus simplification packages, as restoring Europe's competitiveness requires going much further in cutting red tape. The CoR members underline that simplification and digitalisation must be designed to reduce regulatory burdens for businesses of all sizes, while ensuring technological neutrality.

The CoR makes clear that the Single Market and Cohesion Policy are 'two sides of the same coin': deeper market integration must go hand in hand with strong territorial cohesion and adequate funding for rural development. While intra-EU trade in goods fosters economic convergence, trade in services consistently favours larger cities and wealthier regions, leaving more vulnerable regions, such as islands and rural areas, behind.

Therefore, CoR members urge co-legislators to ensure that further integration is accompanied by adequate cohesion funding, particularly within the upcoming EU long-term budget 2028-34, the Multiannual Financial Framework. The next budget should strengthen the role of local and regional authorities in the implementation of EU funded policies as a safeguard against a lack of focus for territorial challenges to avoid negative impacts in the Single Market.

Quotes

Rapporteur Emma Blain (IE/EPP), Dublin City Councillor and rapporteur on 'The Single Market and Customs Programme': "I'm calling for stronger involvement of local and regional authorities in how the Single Market works in practice, because they're often the first point of contact for businesses, especially SMEs working across borders. The Single Market is one of Europe's greatest strengths but for it to boost competitiveness and remove barriers, it has to work on the ground for real businesses, at the heart of our regions and cities. That means better cooperation, smarter digital tools and stronger safeguards for EU funding. Because when the Single Market works better, Europe's SMEs can grow, trade and thrive."

Rapporteur Lorenzo Galligani (IT/ECR), Pistoia City Councillor and rapporteur on 'The Single Market Strategy': "Regions and cities are the first point of contact for businesses and workers. They help SMEs to scale up and navigate local markets and regulations. Without the involvement of regions and cities in the design and implementation of Single Market policies, the Single Market risks remaining declarations on paper rather than a real tool for growth and competitiveness. We need to reduce regulatory burdens and Single Market barriers, we need a simplification revolution, and we need explicit recognition of the role of micro-enterprises, often overlooked but vital to Europe's economic fabric and regional resilience."

Background

• Video and photos of the CoR plenary session.

• In addition to the one on the Single Market and Customs Programme, the CoR is working on 19 other opinions to assess specific aspects and regulations of the future EU long-term budget 2028-34 (check the opinions' roadmap). This encompasses an opinion adopted on 4 March, which outlines requests and concerns regarding the overall architecture of the budget. More information.

Contact:
Victor Moreno Morales de Setién
Tel: +32 475999662
victor.morenomoralesdesetien@cor.europa.eu