Digital single market repair kit

In September 2025, Sitra launched a project aimed at developing concrete proposals to address the biggest bottlenecks of Europe’s digital single market. The project focuses on analysing regulatory, legislative and administrative barriers that limit cross‑border integration and EU competitiveness, and on developing practical policy solutions to address them.

Sitra has developed a comprehensive situational overview based on an analysis of the most influential reports published between 2023 and 2026, focusing on the key bottlenecks identified in Europe’s Digital Single Market. Under Sitra’s leadership, ten of the most critical bottlenecks will be prioritised, and concrete policy recommendations to address them will be developed.

The ultimate objective is to provide the European Commission with a concrete set of priorities to enhance cross-border integration and drive measurable economic impact.
 

Together with Bird & Bird, Sitra analysed the most relevant EU studies on the Digital Single Market published between 2023 and 2026. The analysis provides the foundation for a broader report currently being prepared, which will highlight the key bottlenecks of the Digital Single Market and propose concrete solutions to address them. The report, including an action plan to remove barriers to the Digital Single Market, will be published in Brussels in early June.

The economic weight of the EU Single Market has weakened. The Single Market’s share of EU GDP has turned downward, and according to the International Monetary Fund (IMF), internal barriers correspond to tariff equivalents of 44 per cent for goods and as much as 110 per cent for services. At the same time, the geopolitical, trade and security environment has changed permanently. Economic performance, technological capabilities and strategic autonomy are now inseparably linked.

Without a well-functioning Single Market, the EU cannot effectively respond to competitiveness, security or sovereignty challenges. Advancing the digital single market is crucial for the EU’s internal cohesion and its ability to compete with other major economies. A fully functioning common market would unlock substantial scale and efficiency gains for the EU – benefits that would naturally flow to Finland and Finnish companies as well.

The repair kit for the digital single market agenda is being developed in cooperation with the Centre for European Policy Studies (CEPS) and a broad range of stakeholders, including public authorities, research organisations, companies, and their interest organisations.