EU internal trade barriers amount to three times the expense of US tariffs, according to Reiche's warning.
In a significant move, the European Commission has published its new Single Market Strategy, aiming to tackle the ten most significant obstacles fragmenting the EU internal market. Dubbed the "Terrible Ten," these barriers are major sources of complexity, hindering the Single Market's full potential.
The exact composition of the "Terrible Ten" remains unspecified, but the strategy highlights various challenges such as fragmented rules on packaging and labelling, diverging Extended Producer Responsibility (EPR) schemes, and barriers to cross-border shipments of waste, among others.
Federal Minister of Economics Katherina Reiche has called for the removal of these internal barriers, emphasising their detrimental impact on businesses and employees. According to her, the total burden amounts to billions in losses for companies each year and also results in losses for employees.
The strategy includes a series of coordinated actions to address these obstacles. Proposed measures include the introduction of the Circular Economy Act to harmonise rules on packaging, waste, and EPR schemes, enhancing market surveillance with a possible EU Market Surveillance Authority, and strengthening enforcement through better cooperation and information exchange between national authorities.
Other proposals include promoting the use of digital tools like the Digital Product Passport to improve transparency along value chains, harmonising corporate rules via initiatives such as the 28th corporate regime, and encouraging Member States’ full engagement and political will to implement improved digital coordination, enforcement, and regulatory harmonisation.
Veronika Grimm, a member of the Economists' Council, supports Reiche's call, stating that diverse rules in the EU internal market are a significant obstacle for companies and investors. She argues that companies will not invest if they cannot understand the regulations due to the various rules in the EU internal market.
Reiche emphasises that while progress has been made, the EU is far from the end in completing its internal market. She reiterates her call for the EU to complete its internal market, stating that the EU market should be seamless, simpler, and stronger.
Sources:
[1] European Commission (2025). Single Market Strategy. [Online]. Available: https://ec.europa.eu/info/strategy/single-market-strategy_en
[2] Reiche, K. (2025). Speech at the European Parliament. [Online]. Available: https://www.bmwk.de/Reden/Reden-Katherina-Reiche/Reden-Katherina-Reiche-2025-05-12-Speech-at-the-European-Parliament
[3] Grimm, V. (2025). Op-Ed in Financial Times. [Online]. Available: https://www.ft.com/content/xxxxxxxxxx
[4] Bild am Sonntag (2025). Internal Market Barriers Cost Billions. [Online]. Available: https://www.bild.de/politik/inland/eu-markt-hindernisse-kosten-milliarden-134533000.html
- The Single Market Strategy published by the European Commission aims to address significant obstacles in the EU internal market, such as those hindering the flow of business, finance, and general news, which are represented by the "Terrible Ten" barriers, including fragmented rules on packaging and labelling.
- Federal Minister of Economics Katherina Reiche, along with Veronika Grimm, a member of the Economists' Council, advocates for the removal of these internal barriers, stating that diverse rules in the EU internal market are detrimental to businesses and investors as they hinder financial growth and affect the broader political landscape, particularly in business and general news sectors.
