Ahead of the imminent implementation of new US tariffs on EU exports, German Minister for Economic Affairs, Katherina Reiche (CDU), has urged the swift removal of internal barriers within the European Union’s single market. In an interview with “Bild am Sonntag” she stated that these internal impediments represent a total burden of 44 percent – almost triple the level of the looming tariffs imposed by the United States.
Reiche emphasized the substantial economic losses incurred annually due to these discrepancies. Currently, companies and employees are losing billions of euros because the EU has yet to fully realize its single market potential. While acknowledging recent “small advancements” toward this goal, she stressed there remains “a long way to go.
Economist Veronika Grimm echoed Reiche’s concerns, describing the damage caused by EU internal trade hindrances as “immense”. She explained that the plethora of differing regulations discourage businesses and, crucially, investors – both within the EU and in countries seeking to export to the EU. “Companies are hesitant to invest when the regulations are so convoluted” Grimm stated, highlighting the inconsistent rules at EU, national, regional and local levels.
Grimm strongly advocated for addressing the accumulated “regulatory thicket” asserting that reducing regulations would automatically diminish bureaucracy and stimulate greater investment. She cautioned against dwelling solely on the actions of Donald Trump, emphasizing the urgent need for the EU to focus on its own internal challenges.
With increased competition from global economies such as China, Grimm warned that the EU’s future success hinges on the willingness of both EU institutions and member states to undertake decisive reforms. Failure to do so, she predicted, could trigger an even more severe crisis.
The European Commission responded to inquiries from “Bild am Sonntag” stating that its new single market strategy aims to tackle what it calls “the ten greatest obstacles”. The initiative seeks to streamline EU regulations and create a market that is “seamless, simpler and stronger.
However, the Taxpayers Association of Europe (TAE) expresses skepticism regarding genuine bureaucratic reduction, arguing that the EU, under Ursula von der Leyen, has exacerbated the problem. TAE chief Michael Jäger criticized the EU for enacting almost four times more legislative acts than the United States between 2019 and 2024, with over 900 initiatives originating directly from the Commission by mid-2025.
Markus Ferber, a CSU Member of the European Parliament and economic expert, accuses the EU Commission of stifling businesses through excessive reporting requirements, suggesting the focus should instead be on creating a truly integrated single market in sectors like telecommunications, energy and financial services.
Rudi Bachmann, a German-American economist at the University of Notre Dame, expressed reservations about the EU’s reliance on trade agreements with the United States. He argued that this dependence weakens Europe’s standing on the global stage, potentially leading to diminished respect from figures like Trump, Putin and Xi and ultimately undermining Germany’s influence too.