The 2025 Annual Single Market and Competitiveness Report

The main findings of the 2025 Annual Single Market and Competitiveness Report are the following:

• The competitiveness of the EU economy faces mounting pressure from several angles, including high energy costs and overcapacities in third countries.
• The Single Market, home to 450 million consumers and 23 million companies, is at the core of the EU's long-term competitiveness. Nevertheless, persistent barriers in the Single Market hold it back from reaching its full potential. Regulatory burden is seen as an obstacle by two thirds of companies.
• Europe boasts stable investment spending, strong research activity and an ample talent pool. However, businesses struggle to scale up, Research and Development expenditure remains below peers and digitalisation progresses too slowly.
• Europe has a strong industrial base, but high energy prices weigh on its competitiveness. The decarbonisation of industry and energy systems as well as circularity is advancing but should accelerate.
• The EU maintains its position as the number one global exporter of services and number two exporter of goods. Still, strategic dependencies and non-market overcapacities in third countries merit careful monitoring.