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Competitiveness Council (Internal market and industry), 8 December 2025
Main results
Annual overview report on simplification, implementation and enforcement
Ministers held a policy debate on the ’annual overview report on simplification, implementation and enforcement’ presented to them by the Commissioner for economy and productivity, Valdis Dombrovskis. The report highlights the progress on simplifying regulations, aiming for a 25% reduction in administrative burdens and a 35% reduction for SMEs, amounting to EUR 37.5 billion in savings. The six presented omnibus packages may lead to EUR 8.6 billion in savings, making up over 20% of the target. 550 stakeholders from all Member States have participated in 28 Implementation dialogues, with more planned before the end of 2025. On enforcement, there are over 1,500 active infringement cases, but the Commission has resolved many through dialogue, with 95% of cases addressed before referral to the Court of Justice.
Most delegations welcomed the simplification efforts of the Commission but warned that forthcoming legislation may add new burdens if not done right. Many recalled the importance of use the existing tools in the better regulation toolbox, and in particular impact assessment, also for substantial amendments introduced by the co-legislators. Many delegations called for a particular attention to the small and medium enterprises when drafting new legislation, and the respect of the one-in-one-out principle to make sure that new legislation replaces outdated rules. Many delegations insisted in the need of use digital solutions to reduce administrative burden.
Cutting red tape and reducing burdens and barriers for European businesses must remain a priority beyond the Danish Presidency. We also need joint action against illegal products from third countries. I value today’s focused and constructive discussions in the Council.
Morten Bødskov, Danish Minister for Industry Business and Financial Affairs
Ministers held an exchange of views on the removal of barriers in the internal market. The presidency proposed to focus the discussions of three of the ten main barriers identified by the Commission in the Single Market Strategy:
Complicated business establishment and operations
Fragmented rules on packaging, labelling and waste
Restrictive and diverging national services regulation
The Danish presidency proposed that annual follow-ups take place in the in the Competitiveness Council and the single market enforcement taskforce (SMET) to keep the current momentum and achieve concrete results. The presidency asked delegations on the Commission’s single market ‘heatmap’ initiative, a map that identifies single market barriers with a colour code. Most delegations welcomed the heatmap as a good tool to identify barriers and to drive an annual exercise to monitor the progress on removing market barriers. Most delegations agreed that the Competitiveness Council should keep the momentum to complete the single market, with many delegations proposing a leading role for SMET to identify barriers, propose solutions and report to the Council.
On concrete barriers, several delegations mentioned the e-declaration for posted workers as one the measures that could be applied soon (provided it does not create additional administrative burdens). Several delegations also evoked the labelling and packaging rules as one of the main barriers that hamper the goods freedom of movement.
Surveillance of e-commerce products
Ministers held an exchange of views on how to improve compliance and enforcement regarding products sold via e-commerce platforms. E-commerce has led to a sharp rise in low-value packages entering the EU, with 4.6 billion arriving in 2023, up from 1.4 billion in 2022. Many products bought directly from third countries via online marketplaces are non-compliant with EU rules, undermining consumer safety and creating unfair competition for European businesses that follow safety standards. Enforcement authorities also struggle to manage the growing volume of these parcels.
Most delegations recognized the seriousness of the issue and emphasized the need for urgent solutions and welcomed the Commission’s communication on e-commerce. They called for strict enforcement of the Digital Services Act (DSA) and the General Product Safety Regulation (GPSR). Several ministers also advocated to accelerate the customs reform, including the removal of the duty exemption for packages under a value of €150. Many delegations expressed openness to the establishment of a European market surveillance authority to remove non-compliant products from the internal market and penalize platforms that fail to adhere to EU regulations.
Unlocking investments in green technologies – Lunchtime debate
Over lunch, ministers held an exchange of views on ‘unlocking the potential for investments in new innovative green technologies’. In a note drawn up to frame the debate, the presidency proposed three principles: prioritizing strategic projects, simplifying regulations, and strengthening public administrations to support cross-border projects. Ministers discussed how to implement these principles and how to align them with upcoming initiatives, such as the industrial decarbonisation accelerator act and innovation-focused legislation.
Any Other Business
Under any other business, ministers were informed about the following issues:
European Competitiveness Fund
The presidency briefed ministers about the state of play of negotiations on the European competitiveness fund (ECF), one of the main pillars of the forthcoming multiannual financial framework (MFF).
RESourceEU
The Commission informed ministers about the new RESourceEU action plan, adopted on 3 December. The RESourceEU action plan aims to accelerate and amplify efforts to secure the EU's supply of critical raw materials.
Strengthening Europe’s energy intensive industries and securing our industrial future
The Italian delegation together with those of France, Poland and Spain presented their key priorities for Europe’s energy-intensive industries and called for urgent EU action to support compliance and competitiveness in all sectors and to protect the EU market from unfair competition.
Declaration by the Friends of Industry
The German delegation briefed ministers on the Berlin Declaration by the Friends of Industry, which had been signed by 19 Member States on the sidelines of the 8th conference of the friends of industry which took place in Berlin on 3 November 2025.
Nexperia update and next steps
The Dutch delegation updated ministers on the recent development regarding the chip producer Nexperia and the importance of semiconductors to the smooth operation of the European economy.
Action plan: Setting the course towards a Single Market driven by business data
The Danish Minister presented an action plan to create a data-driven single market by simplifying EU regulations and promoting digitalisation, standardisation, and automation.
State of play of the current legislative proposals
The presidency updated ministers on the state of play of current legislative proposals, notably:
The omnibus packages
The package travel directive
The e-declaration for posted workers
Measuring instruments
Supplementary Protection Certificates
2025 report on the network of SME envoys
The Commission informed ministers about the 2025 report of the network of SME envoys, an advisory group on SME policy.
A way forward on a proposal for a 28th regime
The Irish minister presented his ideas for a so called 28th regime, calling for a simplified way forward, focused on company law and on prioritising digital solutions in the form of a regulation.
Disruption to civil aviation caused by drones and smuggling balloons from third countries
The Lithuanian, Latvian and Estonian delegations briefed ministers on the civil aviation disruptions caused by smuggling balloons and drones launched from neighbouring Belarus.
Work programme of the incoming presidency
The Cyprus minister presented the priorities of the forthcoming presidency.
