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Competitiveness Council (Internal market and industry), 12 March 2025
Main results
European industry: the competitiveness compass and the clean industrial deal
Ministers held a debate on ways to push for a more competitive European industry. The discussion was held following the publication on 29 January of the competitiveness compass, and the clean industrial deal on 26 February.
Ministers supported many of the measures proposed in these documents including:
decarbonisation
increasing industrial competitiveness
circular economy (to recover critical materials and reduce waste)
diversification of energy supplies
more investment in grids and storage infrastructure
the creation of lead markets for green products (including public procurement)
creation of high quality jobs and protection of skills
avoiding fragmentation of the single market
international agreements to secure access to raw materials, supply chains and free trade
The European economy is at a turning point. Our industry faces a perfect storm: high energy prices, unfair competition from third countries, and a growing innovation gap with global rivals. Today, we pick up the baton from the Commission. It’s time to move from words to action - from debate to real solutions. There’s still much to do, but we are on the right path to unlock the full potential of the European economy.
Krzysztof Paszyk, Polish minister for economic development and technology
Towards a horizontal strategy for a modernised single market: the need for an action plan for services
Ministers held a political debate on the forthcoming strategy for the single market, with a special focus on an action plan for services. The debate followed the publication of the annual single market and competitiveness report (ASMCR) on 29 January.
The discussion provided concrete input for the new horizontal single market strategy, which the Commission plans to deliver in May.
Among other issues, ministers supported the idea of including in the strategy a services roadmap with smart objectives and clear timelines. Many delegations underlined the importance of professional qualifications mutual recognition and mobility of workers. Several ministers underlined the importance of efficient permitting processes, the construction sector and the steady implementation of EU rules, especially for services directive. Several delegations also called for the full use of all available digital tools to boost the integration of services in the single market.
Over lunch, ministers held a discussion on the communication entitled 'A comprehensive EU toolbox for safe and sustainable e-commerce' that had been presented by the Commission on 5 February.
Ministers discussed on the simplification measures proposed by the Commission on 26 February (the so-called omnibus packages) and whether the ‘omnibus method’ can deliver swift simplification on the ground, and how to ensure that simplification measures are also prioritised at European and national levels.
Ministers focused on other areas of European legislation that also require simplification measures to strengthen the competitiveness of EU companies, in particular SMEs.
The omnibus simplification packages presented by the Commission on 26 February (one on sustainability measures, and a second one on financing) are the first in a series of measures promised by the Commission to reduce by 25% reporting obligations for companies (and 35% for SMEs).
A competitive and decarbonised EU industry in the context of the carbon border adjustment mechanism (CBAM)
Ministers exchanged views on industrial policy and on the CBAM. CBAM is the EU tool for placing a fair price on the CO2 of carbon-intensive goods entering the EU, and encouraging cleaner production in non-EU countries.
Ministers discussed ideas to strengthen the CBAM regulation such as:
Fit for 55: how does the EU intend to address the emissions outside of the EU? (infographic)
Other business
A blueprint for the new horizontal single market strategy
The debate on the single market strategy was followed by an information point tabled by Czechia, Germany, Estonia, Finland, Croatia, Ireland, Lithuania, Latvia, Malta, the Netherlands, Portugal, Romania, Sweden, Slovenia, Spain and Slovakia.
Those delegations proposed specific measures to improve the single market, ahead of the forthcoming single market strategy.
Revitalising Europe's industrial future: strengthening competitiveness and resilience
Portugal, Spain, Slovakia and Slovenia called for an industrial pillar in the announced European competitiveness fund to foster technological leadership, secure supply chains and ensure that Europe remains a key global industrial player.
Czechia, France, Hungary, Italy, the Netherlands, Romania, Slovakia and Spain drew attention to the crisis that the chemical industry is currently facing (with a 12% drop in production and the risk of losing 50 000 jobs in the petrochemical business alone) and proposed measures to support the sector, such as dedicated EU critical chemicals act.
