The European Union has launched a comprehensive strategy, “One Europe, One Market,” aimed at significantly boosting its global competitiveness. This initiative seeks to dismantle internal barriers, simplify regulations, and foster innovation to rival economic powerhouses like the US and China. The plan addresses lagging productivity and the fragmentation of the single market, which hinders businesses from scaling effectively.
At the March 2026 European Council, EU leaders agreed on a robust agenda with concrete measures and ambitious deadlines to enhance the EU’s competitiveness, resilience, and strategic autonomy. The “One Europe, One Market” agenda is designed to be implemented progressively, with key targets set for 2026 and 2027, and a broader vision extending to 2028.
A central pillar of the strategy is the creation of a “28th regime” for company law, dubbed ‘EU Inc.’ This optional framework aims to simplify business operations across member states, allowing companies to register and operate digitally within 48 hours at a minimal cost. The goal is to overcome the fragmentation caused by 27 different national regulations, enabling businesses to scale up more easily. Other measures include a unified e-declaration system for posted workers, improved mutual recognition of professional qualifications, and the implementation of the ‘once-only’ principle through a European Business Wallet.
The EU is committed to reducing red tape for businesses. This involves simplifying existing legislation through omnibus packages and conducting in-depth regulatory reviews to eliminate outdated or overlapping provisions. The strategy emphasizes a shift towards regulations over directives to ensure uniform application across member states and encourages the adoption of ‘simplicity-by-design’ principles for all new EU initiatives.
Recognizing energy as crucial for strategic autonomy, the EU plans to lower energy prices and accelerate the transition to clean energy. Measures include a toolbox of temporary measures to address recent price spikes, targeted solutions for electricity prices, and a review of the emissions trading system (ETS) to reduce carbon price volatility. A European grids package aims to build and enhance energy infrastructure for a more integrated and robust energy market.
To bolster Europe’s industrial base and innovation capacity, the EU will map dependencies in strategic sectors and establish a “European preference” for critical technologies. The initiative aims to take the lead in developing key technologies and defending against unfair competition. Diversifying trade and investment ties is also a priority to secure access to essential resources and supply chains.
The strategy includes creating a savings and investment union with an integrated capital market to provide businesses with necessary equity capital. Proposals focus on increasing private funding, mobilizing savings, and creating a truly integrated European capital market. The development of a digital euro is also on the agenda to support a resilient European payment system.
Data indicates that the EU’s share of global GDP is projected to lag behind China and the US. The “One Europe, One Market” agenda directly addresses this by tackling issues such as higher interstate barriers compared to the US, excessive reliance on external suppliers, and the high cost of compliance for EU companies. The initiative aims to create a more dynamic and competitive European economy.