The European Commission’s 2025 Annual Single Market and Competitiveness Report underscores the vital role of a unified market in driving Europe’s social and economic resilience. With challenges ranging from the green and digital transitions to geopolitical tensions, the report outlines how a well-functioning single market can boost innovation, strengthen value chains, and enhance cohesion across regions.

For organisations engaged in the proximity and social economy, this report provides insights into how EU competitiveness strategies can align with inclusive and place-based development. It highlights the need for more investment in skills, local innovation, and social infrastructure to ensure that the green and digital transitions leave no one behind.

Key findings

•    The Single Market is a backbone of EU resilience, enabling coordinated responses to recent crises and facilitating the green and digital transitions.

•    Strategic investments in key sectors (e.g., clean tech, semiconductors, AI) are essential for reducing dependency and strengthening Europe’s position in global value chains.

•    SMEs, social economy actors, and regional innovators require stronger support through simplified regulation, targeted funding, and skills development.

•    Closing territorial gaps between urban and rural areas, or core and peripheral regions is key to ensuring that competitiveness does not come at the cost of cohesion.

The report offers actionable directions for actors in the social and proximity ecosystem. It supports a narrative where competitiveness includes people and places, calling for collaborative policymaking, regionally tailored interventions, and inclusive innovation. The focus on social investment, upskilling, and access to finance resonates strongly with local organisations working at the intersection of economy, society, and sustainability.

As the EU navigates complex transitions, this report reinforces the importance of inclusive competitiveness. For social and proximity actors, it offers a framework to advocate for policies that balance innovation with cohesion and local empowerment.

Read the full report here.