In a series of recent opinions, the European Economic and Social Committee has called for stronger EU action to modernise the rules underpinning the single market.

EUR 14 billion a year: the hidden cost of single market fragmentation

In its opinion on the Single market – tackling unjustified territorial supply constraints, the EESC urged the EU to crack down on territorial supply constraints (TSCs), which cost European consumers around EUR 14 billion annually, with identical products sometimes being sold at prices more than 100% higher in one Member State than in a neighbouring country. 

'Ultimately, it is the European consumers who pay the price,' said rapporteur for the opinion Antje Gerstein. 'The EESC warns that allowing the single market to remain thus fragmented is unsustainable. As Mario Draghi has underlined, internal market fragmentation is even more damaging to the EU economy than external trade barriers.'

The TSCs are practices through which multinational manufacturers restrict where retailers and wholesalers can find and buy products within the EU, which results in higher prices, reduced product choice and distorted competition across the Member States.

The EESC is asking the Member States to avoid introducing new national barriers that further 'renationalise' sourcing markets and instead remove unjustified restrictions on cross-border trade. 

A strategic rethink of European standards

Europe’s standards system must remain inclusive, transparent and firmly anchored in EU values, the EESC said in its opinion entitled Strategic standardisation for a stronger single market. This opinion is a proactive contribution ahead of the revision of the EU's standardisation framework announced by the European Commission.

European standards increasingly shape everything from industrial competitiveness and digital technologies to workplace organisation and consumer protection. In the EESC's view, the current system faces mounting challenges linked to geopolitical tensions, rapid technological development and the growing internationalisation of standards.

'Standards should support innovation, sustainability and high levels of protection for workers, consumers and the environment,' rapporteur for the opinion Angelo Pagliara said.

But small businesses, trade unions and civil society groups still struggle to participate effectively in standardisation processes due to financial and administrative barriers. To counter this, the EESC is calling for stronger support mechanisms, improved access and greater representation in technical committees. 

Stronger enforcement for a changing market

The EESC is also calling for a major overhaul of EU market surveillance and enforcement systems in response to growing digital trade flows and the rise of AI-enabled products.

In its evaluation report entitled Evaluation of the Market Surveillance Regulation, the EESC has warned that EU rules designed to stop unsafe products from entering the single market are not keeping pace with the rapid growth of online shopping and direct imports from outside Europe.

The main problem is not the law itself, but weak and uneven enforcement across the Member States, the EESC said.

Online marketplaces and third-country sellers are a particular concern. Non-compliant products can be removed from websites after being flagged but often reappear quickly under new listings. This makes enforcement slow and reactive, while compliant European businesses face unfair competition from cheaper non-compliant goods. (ll)