Mistral AI summary:

The European Union is making another attempt to create a truly unified single market by addressing internal trade barriers. The European Commission’s latest strategy, set to be published, aims to streamline regulations and reduce friction for businesses operating across EU countries. The plan includes measures such as uniform packaging labeling, digitizing paperwork, and making it easier to set up new businesses. The Commission estimates that a 2.4 percent increase in intra-EU trade could offset the impact of a 20 percent tariff-induced drop in U.S. exports. Political support for this initiative is strong, with EU countries tasking the Commission to draw up this strategy.

However, the plan has its limitations. The financial sector is largely excluded, and services, which make up a significant portion of Europe’s GDP, face challenges in cross-border expansion. While the strategy includes measures to smooth access to services, cultural and linguistic differences across the 27 member countries pose additional hurdles. The Commission has proposed measures to ensure the strategy’s implementation, including appointing high-level representatives in each country and reviewing progress by the end of 2026. Despite these efforts, the success of the single market strategy ultimately depends on the cooperation of member countries.