Council of the European Union hosts Macroeconomic Dialogue with social partners; participants discuss single market barriers and economic outlook amid geopolitical tensions

March 10, 2025 (press release) –

The Council presidency, the European Central Bank and the European Commission met with European social partners on 10 March 2025 to discuss recent developments of the economic situation, as well as a thematic topic chosen by the Polish Presidency: “key regulatory barriers that contribute to the fragmentation of the single market for services”.

Fostering EU competitiveness is the key priority of the Polish Presidency. Therefore, at the MEDPOL the Presidency has initiated a discussion on regulatory barriers that contribute to the fragmentation of the single market for services. This discussion is very relevant also from the macroeconomic perspective, as services account for 75% of the EU’s GDP and employment. Today we had a very good exchange of views with social partners that should lead to concrete legislative actions. The Commission proposals in this area are already a subject of intensive works in the Council. The Presidency supports an ambitious approach to simplification and burden reduction.

Andrzej Domański, Minister for Finance who currently holds the presidency of the Council

While we expect the European economy to continue to grow, the overall outlook is shrouded in uncertainty. This is due especially to developments in international trade and high geopolitical tensions. The Commission is committed to deepening the Single Market so that it reaches its full potential and helps to drive economic growth. Our engagement with social partners is crucial for us to identify the best policies to achieve this aim.

Valdis Dombrovskis, Commissioner for economy and productivity; implementation and simplification, European Commission

As we work to strengthen the resilience of the European economy, dialogue with social partners, trade unions and business stakeholders provides an important opportunity to assess current economic conditions. Today’s focus on the role of regulation in the Single Market for services was especially timely, given our ongoing efforts to simplify Europe’s regulatory environment. A predictable, competitive and fair framework is essential for businesses to thrive. To preserve European prosperity, we must accelerate reforms, enhance regulatory quality and effectively reduce administrative burden as we work to revitalise the Single Market for future growth.

Paschal Donohoe, President of the Eurogroup

In these times of high uncertainty, it is even more urgent to ensure quality jobs and higher wages and to increase investments— to support the manufacturing sector and other sectors and to bolster domestic demand, which has been eroded. Initiatives on defence must not lead to reduced public investment or government cuts to social expenditures.

We need the suspension of the EU fiscal rules, and a robust EU industrial policy backed by an EU-financed Investment Facility with social conditionalities, along with a SURE 2.0 instrument to provide immediate protection against job losses. The ETUC advocates for a pro-worker simplification agenda and a vision of competitiveness driven by quality jobs, skills and qualifications rather than deregulation.

Esther Lynch, General Secretary of the European Trade Union Confederation (ETUC)

The EU economy continues to underperform that of its competitors, which is largely due to a much heavier regulatory burden on EU companies. To support the EU’s efforts in reducing regulatory burden, BusinessEurope published a list of 68 concrete suggestions of how to reduce regulatory burden. We welcome the EC’s first Simplification Omnibus, which marks a significant milestone in making Europe a better place for doing business and addresses several of the concerns we expressed earlier, by proposing reducing unnecessary reporting and regulatory burdens. However, while the direction of those early EU actions is right, delivery will be crucial.

Markus J. Beyrer, Director General of BusinessEurope

In a time of increasing global instability, the Single Market should be a driver of resilience and growth. However, it remains fragmented, weighted down by regulatory complexity and inconsistent implementation of EU rules. Among others, public procurement has become too complex and rigid, discouraging bidders and driving up costs for contracting authorities. The European Commission has made clear that Europe must adapt to a new economic reality with bold action and a renewed focus on competitiveness. We fully support this endeavour and call on EU institutions to create the conditions for enterprises, workers, and regions to thrive within the Single Market.

Valeria Ronzitti, SGIEurope Secretary General

SME activities in the European Union are still stagnating. SMEs suffer from the weak competitiveness of our industries, high funding costs for investments and mortgages as well as from low private consumption despite increased household incomes.

Therefore, SMEunited urges the European Parliament and Member States to agree and implement the measures for burden reduction, investment funding and reduction of energy prices as fast as possible. Regarding barriers for the single market for services, we underline that simplification for permitting, other procedures like posting of workers and recognition of qualifications can be done without undermining the objectives of the rules.

Véronique Willems, SMEunited Secretary General

Strengthening European competitiveness will be an overarching theme of the Danish Presidency. This requires increasing productivity growth in Europe through continued reform efforts at the national level. Reforms that promote a skilled workforce and flexible labour markets throughout Europe are vital means to this end. Thus, the Danish Presidency intends to discuss this issue at the next Macro-Economic Dialogue at Political Level scheduled for November 2025.

Stephanie Lose, Minister for Economic Affairs - (next Danish Presidency: July-December 2025)

It is ever more important for Europe to safeguard and boost its competitiveness, particularly in the context of geopolitical challenges which are impacting European economies. A top priority should be reducing red tape, as well as achieving progress on the simplification and reduction of regulatory burden. These efforts should allow companies, particularly SMEs, to grow, while also benefiting workers across the EU and ensuring a sustainable level of well-being for EU citizens. Ultimately, these measures will facilitate a substantial deepening of the single market.

Mákis Keravnós, Minister of Finance - (next Cypriot Presidency: January-June 2026)

The next macroeconomic dialogue will be organised under the Danish presidency.

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