We are facing a rare opportunity to shift from planning to implementation on EU competitiveness through a specific delivery agenda that will benefit businesses and consumers.

On 12 February, EU leaders met for a retreat to discuss European competitiveness and the Single Market, with exchanges of views with the former Italian Prime Minister Mario Draghi and Dr. Enrico Letta on the back of their two widely respected reports.

According to the European Commission, the Single Market already brings together around 450 million consumers and some 30 million companies, supporting more than 50 million jobs through trade within the EU. This represents a huge opportunity. At Amazon we have recognised this potential and have invested more than €225 billion in the EU and supported over 127,000 EU-based SMEs selling on Amazon stores who in turn have recorded over €15 billion in export sales. However, a Flint study suggests that EU GDP could gain €335bn by removing more barriers within the Single Market.

We believe there are three priorities: first, off-the-shelf initiatives ready to go; second, practical recommendations to remove priority Single Market barriers; and third, a broader competitiveness vision for a predictable, investment-friendly Single Market.

1. Supporting sector initiatives that are ready to go

Several sector‑specific proposals are ready to deliver swift solutions if leaders give them political backing. One example is the simplification and greater harmonisation of recycling and producer responsibility schemes. More consistent extended producer responsibility (EPR) rules, supported by a European “one‑stop‑shop” for registration and reporting of recycling fees as well as allowing retailers to pay EPR fees on behalf of SMEs would reduce compliance costs while strengthening the circular economy.

Digital labelling is another area where progress is within reach. Expanding the Digital Product Passport into a reliable, single digital source of product, safety and compliance information will decrease the need for multiple physical labels, reduce delays and errors, and give regulators better tools for oversight.

Lastly for many SMEs, predictable rules also mean VAT systems that are easier to navigate across borders by simplifying reporting, enabling real‑time digital invoicing and making it easier for SMEs to sell across the EU. At the same time, EU‑wide VAT relief on charitable donations of surplus goods would encourage businesses to donate rather than destroy products.

2. Making simplification and enforcement real

Over recent years, the EU has built an ambitious framework of digital, data, and product rules intended to protect consumers and support innovation. While pursuing these objectives, the EU has created overlapping obligations for many businesses who are also faced with inconsistent implementation of these rules across the EU27. The upcoming “simplification omnibuses” are therefore pivotal: they can reduce duplication across key digital laws and make it easier for companies to comply once and operate across the EU.

EU leaders should use the momentum of this meeting to agree on concrete actions and milestones that will help European businesses export, grow and scale:

  • Prioritise the removal of the ‘terrible ten’ cross border barriers identified in the Horizontal Single Market Strategy and ensure a clear timeline for their resolution. Whilst working on additional barriers like VAT on donations, cross-border payments, and promoting EV charging infrastructure.
  • Strengthen the European Commission's oversight of national measures through tools like the TRIS notification procedure, preventing member states from introducing barriers that undermine and restrict the Single Market.
  • Commit to digitalising reporting, authorisation and procurement processes.
  • Shift from paper‑based or fragmented national systems to streamlined digital tools, such as the Digital Product Passport.
  • Develop a “smart enforcement” approach that uses technology, targets real risks and avoids extra complexity.
  • Establish a mandate and annual agenda for Single Market enforcement to close the gap between laws and outcomes.

3. A predictable, investment‑friendly Single Market

Competitiveness also hinges on investor confidence that the EU offers a predictable, innovation‑friendly regulatory environment.

Mario Draghi called for the mobilisation of significantly higher private investment in AI, cloud, robotics and low‑carbon technologies, and has highlighted that private investment is crucial in addressing the EU’s investment gap of €750–800 billion. Yet fragmented capital markets, an underdeveloped venture capital environment and ambiguous Foreign Direct Investment (FDI) screening and merger rules, hinder private investment in the EU. Streamlined rules for mergers, listings and venture capital funds can reduce frictions for startups and scale‑ups that want to grow beyond their home country. While predictable and efficient merger control and IPO processes are also essential, so founders and investors have clear exit options when they build and back European startups.

By connecting these financial reforms with Draghi’s analysis of Europe’s competitiveness challenge and Letta’s Single Market vision, leaders can show they are serious about turning Europe into a “scale‑up” continent.

4. Our takeaway

By anchoring these priorities on simplification and smart enforcement, a more predictable and investment‑friendly Single Market, SME‑friendly VAT rules that make cross‑border compliance easier and support donations of surplus goods and ready‑to‑implement sector initiatives in areas like recycling and digital labelling, EU leaders can show that the Single Market is not just a theoretical project but a competitive, green and practical day‑to‑day reality for businesses and consumers alike.

Please read more about our thoughts in our brochure.