Competitiveness Council (Internal market and Industry), 28 May 2026

Main results

Overall, today’s discussions showed a strong shared commitment to strengthen the resilience and autonomy of European industries and to unleash the full potential of our Single Market so that it continues to deliver for businesses, workers and citizens across Europe.

Michael Damianos, Minister of Energy, Commerce and Industry of the Republic of Cyprus

Industrial Accelerator Act 

Ministers held a policy debate on the Industrial Accelerator Act (IAA): how best to leverage access to the Single Market through European preference and low-carbon requirements. The Industrial Accelerator Act (IAA) is a flagship legislative proposal. It aims to strengthen the industrial competitiveness of Europe in order to achieve the objective of 20% of the EU’s GDP being generated by the industrial sector by 2035. It includes measures such as speeding up permitting, boosting demand for low carbon or "Made in EU" products, and controlling foreign investment. It was adopted by the Commission on March 4, 2026.

A wide majority of Member States supported the objectives of the IAA and European origin measures. However, some raised concerns about market fragmentation (specifically regarding decarbonisation requirements) and increased administrative burdens, particularly for public procurement and permitting procedures. Views diverged on the speed of implementation, with some urging swift action to support industry, and others requesting sufficient transitional periods to allow adaptation. Several ministers suggested expanding the IAA to cover additional sectors. Finally, while most delegations reiterated the need to maintain an open economy (both for trade an investment), some cautioned against excessive openness which could undermine the ‘Made in Europe’ principle.

• Industrial accelerator act
• Industrial policy (background information)

Regulation on the 28^th Regime Corporate Legal Framework: EU Inc

Ministers held a policy debate on the 28^th Regime Corporate Legal Framework: EU Inc. The EU Inc. 28th Regime is a legislative proposal that creates an optional, fully digital company law framework that allows businesses to operate across all 27 EU member states using a single, harmonised legal form with streamlined registration, governance, and dissolution procedures. This new form of company will be called ‘EU inc.’ and it will be possible to create one in just 24 hours for only 100€ via a fully digital platform.

Ministers welcomed the proposal and emphasized the benefits of a simplified digital company law regime. At the same time, many delegations stressed the need for strong safeguards to prevent fraud, tax evasion, and money laundering. Some delegations underlined importance of choosing the right legal basis to ensure legal certainty in areas like taxation, minimum capital or insolvency. Several delegations highlighted the importance of respecting national rules in areas like labour rights. Overall, most delegations expressed their commitment to advancing this important proposal and to meeting the European Council’s target of having it approved by the end of 2026.

• 28th Regime Corporate Legal Framework: EU Inc
• Single market (background information)

Conclusions on ‘building a sustainable and competitive tourism for the future’ 

The Council adopted comprehensive conclusions on building a sustainable and competitive tourism sector for the 21st century. The conclusions recognise tourism’s vital economic role – contributing 7% of the EU’s gross value added, 10% of jobs, and supporting 4.6 million businesses, predominantly SMEs – while prioritising environmental, social, and economic sustainability.

Tourism is a key driver of growth, employment, and cultural exchange across the EU. Today’s conclusions set a clear path for ensuring the long-term resilience and competitiveness of the sector in a rapidly changing world.

Kostas Koumis, Deputy Minister of Tourism of the Republic of Cyprus

• 2022 Transition Pathway for Tourism
• Council conclusions on the EU agenda for tourism 2030

Impact of the crisis in the Middle East on the EU tourism sector 

Ministers exchanged views on the best ways to address the impact of the crisis in the Middle East on the EU tourism sector and outlined the support measures introduced at national level. The crisis has had a complex dual impact on European tourism, creating a significant daily loss in regional travel while boosting Europe as a ’safe’ alternative.

All delegations acknowledged the challenges facing the sector — particularly SMEs — although the scale of the impact differed across Member States, with island Member States and islands especially affected. Many delegations called for a coordinated European response, including stronger information sharing, and initiatives to promote Europe as a safe travel destination.

Key challenges facing the European Chemical Industry 

During the lunch break, ministers held an informal debate on the key challenges facing the European chemical industry. The director general of the European chemical industry council (CEFIC), Marco Mensink, took part in the discussion.

• A European Chemicals Industry Action Plan
• The Clean Industrial Deal: A joint roadmap for competitiveness and decarbonisation

Any other business

Under Any Other Business, ministers were briefed on eleven issues:

• The Cyprus presidency informed ministers about the state of play of the following legislative proposals.

1. Supplementary protection certificates (SPCs)
2. Regulation establishing the European Competitiveness Fund (ECF)
3. Regulation amending critical raw materials act (CRMA)
4. Regulation on e-declaration of posted workers

• The Commission presented the communication ‘A Simpler, Clearer and Better Enforced EU Rulebook’ that the Commission, adopted on 28 April 2026, with the Cyprus Presidency presenting the significant work undertaken during its term in the field of simplification. 

• A Simpler, Clearer and Better Enforced EU Rulebook

• The Portuguese and Latvian delegations gave a presentation on the subject: General Block Exemption Regulation (GBER) review: clarifying the incentive effect practical application to improve conditions for increasing competitiveness.
• The Polish delegation along with 25 others presented a joint non-paper on the strategic necessity of extending the Your Europe Advice (YEA) support for the SOLVIT network.
• The French delegation briefed ministers on the last meeting of the ministerial alliance for energy intensive industries.
• The Bulgarian, Czech, Greek, Polish and Romanian delegations gave a presentation on the Impact of the EU ETS on Energy-Intensive Industries.
• The Dutch, Finish, French, Portuguese and Swedish delegations informed ministers about the European product act, as a cornerstone of the single market.
• The Dutch, Spanish and Slovak delegations informed ministers about the difficulties for undertakings under the general block exemption regulation.
• The Commission presented the latest developments of the Single Market Strategy and the planned next steps, one year after its launch.
• The Commission presented the draft revision of the merger guidelines that was adopted on 30 April.
• The Irish delegation announced the priorities of the incoming presidency in the field of industry and internal market.

‘A’ items

Ministers adopted the list of A items.

• Single market (background information)
• EU industrial policy (background information)