Member
European Parliament
Hosted by Hanns-Seidel-Stiftung
The EU Single Market is built on four freedoms, but they do not operate equally in practice. The free movement of goods works relatively well, the free movement of persons largely functionsbut remains politically sensitive, and capital is legally free yet still fragmented across national systems. Services, which make up the bulk of the EU economy, remain the Single Market’s biggest gap, as divergent rules limit firms’ ability to scale across borders and may weaken Europe’s global competitiveness. While the EU performs relatively well in supporting startups, it underperforms in creating the conditions for scale-ups to expand across Member States, often leaving them nationally focused or prompting expansion outside the EU.
To strengthen the Single Market, the EU may need to further reduce regulatory fragmentation, better enable cross-border business activity, and unlock private scale-up investment. In this context, the proposed 28th regime aims to create a voluntary EU-wide legal framework to simplify company formation and operations, potentially easing cross-border service provision, though its uptake, scope, and political feasibility remain uncertain. On the capital side, initiatives such as the Savings and
Investment Union seek to reduce fragmentation and improve cross-border flows, but can even the digital euro go further in unifying Europe’s financial system and strengthening the free movement of capital across the Single Market? Where are current policies heading, and when might we see tangible results, not only on paper, but in practice?
What is the main weakness of the EU Single Market today?
Can the proposed 28th regime realistically reduce legal barriers for businesses, and would it have real economic impact and political support?
What policies would you propose - especially in the free movement of services and capital - to make the Single Market fully functional?
