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Competitiveness Council (Internal market and Industry), 26 February 2026
Main results
The 2026 annual single market and competitiveness report
Ministers discussed the 2026 annual single market and competitiveness report, presented by the Commission on 30 January 2026. They acknowledged the challenges highlighted in the report, including administrative burdens, overregulation, and remaining barriers like the so-called ‘terrible 10’. They also mentioned high energy prices, costs linked to the emissions trading scheme (ETS), dependencies on critical raw materials. Many urged to pass from strategy to action, already this very year.
Several ministers called for the swift adoption of the 28th company law regime, the creation of a real capital markets union, new trade agreements, and the implementation of measures under the critical raw materials act, such as EU-based raw material extraction and recycling. Some interventions also cautioned against “gold plating” (adding unnecessary national rules) and noted that some internal market problems stem from member state actions.
Ministers identified sectors with most important dependencies and needing particular attention such as steel and aluminium, semiconductors, batteries, medicines or automotive.
Ministers exchanged views on the emergency plans for industrial resilience, the follow-up to the Industrial action plans for Europe’s steel, automotive and chemical industries within the clean industrial deal.
Most ministers welcomed the proposed sector plans and called for swift implementation, while some stressed the need to simplify cross-sector legislation, such as permitting requirements. High energy prices were identified as a key issue to improve competitiveness in all three sectors.
On cars, A large majority of ministers advocated revising the carbon border adjustment mechanism (CBAM) and the emissions trading scheme (ETS), though opinions on the changes needed differed substantially. Several delegations called for a targeted revision of the REACH regulation, supported the automotive package and CO2 target flexibility for new vehicles and the battery booster strategy, though views varied on other proposals like the corporate car fleets. On chemicals, most ministers welcomed the chemicals alliance. On steel, overproduction by third countries was a major concern, with many ministers urging the use of trade defence instruments. Additionally, several ministers highlighted the need to keep metal scrap within the EU and create a secondary raw material market.
Ministers adopted Council Conclusions on the 2030 Consumer Agenda, which the Commission presented on 19 November 2025. The conclusions call for the strengthening of consumer protection (in particular in online shopping), the promotion of sustainable consumption, better enforcement and closer cooperation between member states.
Consumer protection and competitiveness are two sides of the same coin. To protect consumers in the digital age, we must tackle harmful online practices and risks, ensure sustainable consumption and strengthen enforcement across borders. Only through bold action on these fronts can we build a fairer, greener and safer European market for all consumers.
Michalis Damianos, Minister for Energy, Commerce and Industry of the Republic of Cyprus
Ministers held a policy debate on the European Competitiveness Fund (ECF), which is a key component of the EU’s 2028-2034 long-term budget (the upcoming multiannual financial framework, or MFF). Member states welcomed the ECF as an important tool for promoting investment and innovation. However, there was a discussion on whether the fund should prioritize projects based solely on excellence or also consider geographical balance.
Many ministers emphasized the need for the fund to be user-friendly and for providing specific guidance and support to SMEs throughout the investment journey. They stressed the importance of supporting projects across the entire supply chain. Additionally, many delegations highlighted the importance of closely linking the ECF with Horizon Europe, the EU’s research and innovation framework, to ensure continued support for innovative projects from the prototype stage to industrial deployment.
Several delegations underlined the importance for the ECF to attract private investment and reduce risk. They proposed involving national investment banks to support local investments and recommended drawing on the experience of investment programmes like the current InvestEU to help leverage private funding.
SMEs are a core part of all value chains in the EU and must be integrated in the collaborative research and production value chains so that our industrial ecosystems are resilient and efficient. Our competitiveness lies in the integration of SMEs in the whole supply chain and the ECF can offer simpler tools to SMEs to participate in the programme and grow.
Michalis Damianos, Minister for Energy, Commerce and Industry of the Republic of Cyprus
Taking joint ownership for removing barriers from the single market
During lunch, ministers exchanged views on taking joint ownership for removing barriers from the Single Market. The Cyprus presidency has prepared a note to guide the discussions, where ministers are invited to share their views on the following issues: Commission's shortcomings & member states' responsibilities; the One Europe, One Market roadmap and action plan; easy-to-implement (low-hanging fruits) reforms in services that can offer quick, visible improvements for businesses, possible binding deadlines to address the ‘terrible 10’ barriers and finally targeted measures for specific sectors.
The Polish delegation informed ministers about the outcome of the ministerial alliance meeting for energy-Intensive industries.
The Czech, Estonian, Finish, Irish and Latvian delegations gave ministers a presentation entitled ‘Effective competition policy is a cornerstone of well-functioning resilient and competitive single market’.
The Belgian delegation briefed ministers about safeguarding industrial competitiveness through a pragmatic and technology-neutral hydrogen approach under RED III.
