The European Commission adopted its 2026 Annual Single Market and Competitiveness Report, assessing how the Single Market is functioning and the conditions for businesses to innovate, grow and compete. Drawing on 29 key performance indicators (KPIs), the report presents a mixed picture and sets out priority areas where the Commission plans to intensify barrier-removal efforts in 2026. Across the KPI set, six indicators declined, six improved and 15 remained broadly unchanged, with two new indicators added. Improvements included recognition of skills and qualifications for cross-border professional activity, market surveillance activity measured by product investigations, uptake of artificial intelligence, cloud computing and data analytics by EU companies, higher InvestEU investment volumes supporting the industrial transition, and stronger renewable energy generation and capacity additions. Deterioration was recorded for intra-EU trade as a share of EU GDP, the share of transposed Single Market Directives triggering infringement proceedings, the average time to establish a new industrial standard, labour shortages in green-transition occupations, 15-year-old school performance measured by PISA scores, and private investment as a share of GDP. New tracking includes an indicator on simplification showing projected administrative savings of around EUR 15 billion from adopted omnibus and other simplification proposals, and an indicator on the share of single market administrative procedures that are fully digital. In 2026, barrier-removal efforts will focus on late payments and obstacles to key services related to the green transition, pursued through dialogue with Member States and infringement proceedings where necessary, alongside clearer explanations of enforcement objectives and results. The package is complemented by the 2026 Single Market and Competitiveness Scoreboard and accompanying documents covering implementation of the Competitiveness Compass, the Clean Industrial Deal and the Single Market Strategy, as well as the 2024-2025 Annual Report of the Single Market Enforcement Task Force.
European Commission 2026-01-30
European Commission adopts 2026 Annual Single Market and Competitiveness Report and targets 2026 action on late payments and green-transition services barriers
The European Commission's 2026 Annual Single Market and Competitiveness Report highlights a mixed performance across 29 key performance indicators, with plans to intensify barrier-removal efforts focusing on late payments and green transition services. The report notes improvements in skills recognition, AI uptake, and renewable energy, while identifying declines in intra-EU trade and labour shortages in green-transition occupations.