The 2025 Annual Single Market and Competitiveness Report, issued by the European Commission, offers a comprehensive analysis of the European Union's competitiveness landscape and the state of its Single Market. Against a backdrop of global economic pressures and geopolitical shifts, the report underlines the critical role of the Single Market—home to nearly 450 million citizens and 23 million companies—in driving the EU’s prosperity.

The report highlights persistent regulatory and administrative barriers that hinder cross-border business, particularly in services. It emphasises challenges such as high energy prices, low labour productivity, fragmented investment, and slow adoption of digital and green technologies. With R&D expenditure remaining below peers and digitalisation progressing too slowly, businesses in Europe struggle to scale up.

With 22 Key Performance Indicators, the report provides data-driven insights across domains such as regulatory compliance, venture capital investment, skills development, public and private investment, and SME performance. It also assesses efforts to reduce barriers to goods and services, streamline digital procedures, and foster cooperation across Member States.