(fra Kommisjonens pressemelding 29.1.2025)

Annual Single Market and Competitiveness Report highlights challenges and opportunities to EU competitiveness

Today, the European Commission is publishing the 2025 Annual Single Market and Competitiveness Report analysing the strengths and weaknesses of the EU economy. It provides the analytical context for the Competitiveness Compass? an action plan that will reignite economic dynamism in Europe.

The report tracks the evolution of 22 key performance indicators, such as integration in the Single Market, Research and Development, expenditure and electricity prices. They are crucial for assessing the EU's competitiveness, identifying areas requiring special attention, such as completing the Single Market, closing the innovation gap, decarbonising industry, and reducing dependencies.

The main findings of the report are the following:

• The competitiveness of the EU economy faces mounting pressure from several angles, including high energy costs and overcapacities in third countries.
• The Single Market, home to 450 million consumers and 23 million companies, is at the core of the EU's long-term competitiveness. Nevertheless, persistent barriers in the Single Market hold it back from reaching its full potential. Regulatory burden is seen as an obstacle by two thirds of companies.
• Europe boasts stable investment spending, strong research activity and an ample talent pool. However, businesses struggle to scale up, Research and Development expenditure remains below peers and digitalisation progresses too slowly.
• Europe has a strong industrial base, but high energy prices weigh on its competitiveness. The decarbonisation of industry and energy systems as well as circularity is advancing but should accelerate.
• The EU maintains its position as the number one global exporter of services and number two exporter of goods. Still, strategic dependencies and non-market overcapacities in third countries merit careful monitoring.

Background

The Annual Single Market and Competitiveness Report – building on the annual reporting introduced by the Commission in 2020 – provides crucial analysis informing evidence-based discussions in the European Parliament, the European Council and the Council.

The 2025 Annual Single Market and Competitiveness Report responds to the request of the March 2023 European Council to monitor the state of Europe's Single Market and competitiveness. It builds on the previous 2024 Annual Single Market and Competitiveness Report, tracking the competitiveness drivers identified in the EU's 2023 Long-term competitiveness Communication.

The findings of this year report will guide the development of policies to strengthen the EU's competitiveness and unlock the full potential of the Single Market. It will notably inform forthcoming initiatives such as the Clean Industrial Deal and the Single Market Strategy.

In addition, the Commission is today publishing several documents complementing the Annual Single Market and Competitiveness report, such as the 2025 Single Market and Competitiveness Scoreboard; a report on key findings from the European Monitor of Industrial Ecosystems; the new Single Market Enforcement Taskforce (SMET) report; and a Single Market economic brief on the External Vulnerability Index (EXVI).