Examining Enrico Letta's blueprint for competitiveness
News
21 Apr 2024
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Examining Enrico Letta's blueprint for competitiveness

With the growing need for a more competitive Europe, Enrico Letta, Italian politician and former Prime Minister of Italy, has released his report on the future of the Single Market. The report provides an analysis of the Single Market and proposes enhancements such as reducing regulatory burden, developing a ‘fifth freedom’ focused on research, innovation, and education, as well as developing strategies to balance the deepening internal market integration while reinforcing external economic relationships. Learn more about boosting the attractiveness of Europe in the full report.  

AmCham EU's Agenda for Action 2024-2029 has already highlighted how Europe can deepen and strengthen the Single Market by reducing regulatory burdens on business, facilitating innovation and digital transformation, transitioning to a greener economy and fostering strategic partnerships. With decisive action, the EU can reset the agenda and strengthen its competitiveness in the global economy. American companies stand ready to help build a brighter future in Europe and play their part in bolstering the Single Market.  

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"Gold-plating" of EU legislation has become a structural challenge for companies operating across the Single Market. While Member States are often permitted to introduce additional national measures when implementing EU law, these divergences frequently create fragmented compliance requirements, administrative burdens and increased costs for businesses.

Drawing on examples from AmCham EU member companies across digital policy, cybersecurity, data protection, telecommunications, environmental regulation, consumer protection, tax transparency and labour law, the paper shows how national additions to EU rules can result in parallel compliance systems, duplicate reporting obligations, country-specific product adaptations and barriers to cross-border operations.

The paper highlights four key findings:

  • Divergence between Member States is often a bigger cost driver than any single regulatory requirement.

  • Fragmentation extends beyond directive transposition and also arises through opening clauses, national guidance, administrative practices and regional measures.

  • Minimum-harmonisation legislation can still create significant Single Market fragmentation.

  • Gold-plating occurs at both national and sub-national levels.

The European Commission should address these issues through greater consistency in implementation, increased transparency around national additions, reduced duplication in reporting and registration requirements, stronger implementation dialogue and the use of Single Market enforcement tools where appropriate. The objective is not to remove legitimate national discretion, but to prevent unnecessary regulatory barriers within the Single Market.

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Europe in a new era of global competition

On Tuesday, 22 September, AmCham EU hosted Dragoș Tudorache, Member of the Cabinet of Executive Vice-President Stéphane Séjourné, European Commission, for a fireside chat. Moderated by Malte Lohan, CEO, AmCham EU, the conversation explored the growing role of economic security in Europe’s trade agenda and external relations. The exchange examined how this shift is shaping the EU’s engagement with trading partners and its position globally. Attention also turned to the choices facing Europe in a changing geo-strategic landscape, including how to reinforce resilience and strengthen competitiveness.

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Tax policy may not always make headlines – but its benefits certainly are

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