Why the Competitiveness Council on May 22 matters for Europe’s business climate

In this contribution, Peter van Keulen – Founding Partner at Public Matters – reflects on the upcoming Competitiveness Council (Internal Market and Industry) on May 22, 2025 – a pivotal moment for European businesses.

Europe must strengthen its competitive edge. The May 22 Council is an opportunity to decide and tackle key challenges that hold back the potential of the EU Single Market – from regulatory fragmentation to administrative burdens and gold-plating by Member States.

Gold-plating must end. The unnecessary addition of national requirements beyond EU legislation creates fragmentation, increases compliance costs, and limits business growth. The EU must commit to consistent, clear, and simplified rules that reduce complexity and foster innovation.

Boosting Competitiveness: Ministers will discuss a proposal by the European Commission developing tailor-made industrial policies for key sectors. This could include concrete actions to:

• Harmonize product standards and labeling requirements.
• Reduce red tape for businesses.
• Streamline recognition of professional qualifications across borders.
• Enhance enforcement of Single Market rules.

The context is clear: the EU’s competitiveness is under pressure due to high energy costs, complex regulations, and sluggish innovation. Only 4 out of the world’s 50 largest tech companies are EU-based, and 33% of European unicorns have relocated abroad. The Letta Report earlier called for a dynamic Single Market strategy – emphasizing speed, security, and solidarity to empower EU businesses.

To thrive in the future, Europe needs to transform the Single Market from a fragmented structure into a streamlined, digitally enabled, and truly competitive environment.

Let’s ensure Europe is a better place to do business.