Response to the Commission’s call for evidence on the upcoming single market strategy

The following text will serve as a foreword to DIGITALEUROPE’s publication “Winning the Tech Race. Cut-Simplify-Incentivise: Our three-step gameplan”, which will be uploaded as a position paper in response to the call for evidence. 

Introduction 

DIGITALEUROPE is committed to transforming Europe’s single market into a seamless, unified platform that fosters innovation and global competitiveness. Our Winning the tech race report, which we attach to our response, outlines actionable steps to eliminate fragmentation, simplify processes and accelerate digital transformation across the EU. 

The single market offers Europe unparallelled opportunities, but its full potential remains untapped due to inconsistent rules and practices, regulatory overlaps and administrative burdens. Today, only 8 per cent of European SMEs sell across at least one European border. To address these challenges, we propose the following key actions: 

• Cut market barriers: Establishing a European Business Code to align commercial frameworks and facilitate cross-border trade will create a more integrated business environment. Strengthening public procurement, including at common European level, by standardising processes and criteria will enhance competitiveness, for example, in defence, energy and connectivity. In addition, the EU should address divergent national product requirements by harmonising existing rules on EU level. 
• Simplify reporting and governance: Harmonising fragmented obligations and interpretations across ESG reporting and the voluminous digital acquis (e.g. cyber incidents). This will reduce complexity and compliance costs, especially for SMEs. A Data Union Strategy with a one-stop-shop authority can ensure cohesive data governance and foster data use in the European economy. 
• Ensure harmonisation: Harmonisation and digitalisation of tax reporting and procedures will make the single market easier to access also for SMEs. Where necessary, the Commission should make use of all enforcement tools available to address single market fragmentation. 
• Incentivise digital infrastructure: Accelerating the deployment of secure, scalable networks through a Connectivity Act and investing in critical technologies like AI, connectivity, quantum computing, green tech, additive manufacturing and green energy solutions is essential. Streamlined EU funding programmes should prioritise these areas to build a resilient, future-ready Europe. 
• Foster pan-European scale: Creating an optional “28th regime” to harmonise fragmented laws in areas like general commercial law, e-commerce law, company law and securities law will remove barriers to scaling. Unified funding initiatives will unlock new growth opportunities and ensure leadership in global standards. 

These initiatives aim to enhance the single market’s efficiency and attractiveness, enabling European businesses to scale, innovate and lead on the global stage. By reducing red tape, improving regulatory consistency and prioritising investments in digital infrastructure, Europe can reclaim its position as a global tech leader.