EU Unveils Bold Digitisation Strategy to Revamp Single Market

The European Commission is set to unveil a sweeping new strategy on Wednesday aimed at revitalizing the EU single market through a strong push for digitisation, with a focus on reducing barriers, streamlining cross-border services, and enabling smarter regulation.

The plan, championed by EU Commissioner Stéphane Séjourné, will present six key pillars to modernize the 30-year-old single market in the face of global trade disruptions and internal fragmentation. At its core, the strategy emphasizes digitisation as a means to increase efficiency, reduce costs, and empower small and medium-sized enterprises (SMEs).

Cutting Red Tape and Embracing Data

A central feature of the strategy includes the upcoming Single Market Omnibus proposal, which will streamline compliance processes by shifting from paper-based documentation to data-driven digital systems. This includes the introduction of a Digital Product Passport (DPP) – a tool that will allow businesses to share conformity, safety, and technical information digitally across all EU product laws.

The DPP, first rolling out for batteries by 2027, will be expanded to other sectors, promising faster regulatory clearance and cost savings for both companies and public authorities.

“The fragmented nature of IT systems across the EU is a bottleneck for business,” the Commission states, advocating for improved data exchange infrastructure across member states.

Boosting Services and Addressing Market Barriers

The Commission identified 10 major barriers currently hampering trade and investment, pledging to eliminate them to foster smoother market access. The strategy takes aim at the underperforming services sector, which the Commission says suffers from 5,700 regulatory restrictions across member states.

To address this, the strategy will propose:

Harmonized certification and authorization rules for services.

New rules for cross-border service provision by highly skilled workers.

A digital EU Social Security Pass for real-time verification of entitlements.

It also targets territorial supply constraints that block retailers from reselling goods across borders due to restrictions by large manufacturers.

Sherpas and Political Oversight

To enhance governance, the strategy proposes each EU government appoint a “Single Market Sherpa”, reporting directly to the prime minister or president. These sherpas will coordinate implementation and advocate for reforms at the national level.

An annual high-level political meeting involving ministers, sherpas, and the Commission will guide the Single Market Enforcement Taskforce, responsible for monitoring compliance and progress.

Digital Invoicing and Standards Reform

As part of the digitisation drive, the Commission will also propose making digital invoicing mandatory for all public procurement contracts, addressing its current low adoption rate.

The plan further includes reforms to product rules and a review of the standards regulation, which will allow the Commission to establish common EU specifications, bolstering the bloc’s standing as a global standard-setter.

Stakeholder Reaction

Consumer advocates have flagged e-commerce loopholes as a key concern. “Unsafe products are entering the EU due to outdated online marketplace regulations,” said a BEUC spokesperson.

EU lawmaker Sophia Kircher (Austria/EPP) welcomed the move, highlighting how “national differences in regulations slow down SMEs trying to expand across borders.”

As global competition intensifies and internal inefficiencies linger, the Commission’s new single market strategy aims to ensure Europe remains competitive by reimagining the digital foundations of its economic engine.