German Minister for Economic Affairs, Katarina Reiche, has urged the European Union to dismantle internal barriers within its single market just days before the implementation of new US tariffs on EU exports. Addressing concerns about the impact of potential tariffs imposed by the United States, Reiche emphasized that the cumulative burden of these internal EU barriers represents a significant 44% impediment to economic activity – nearly triple the value of the looming Trump tariffs.
“Over the years, this has resulted in billions of euros in lost value for businesses and, consequently, for workers” Reiche stated. She called for the EU to finally complete its single market, acknowledging that while progress has been made, substantial work remains.
Economist Veronika Grimm echoed Reiche’s sentiments, highlighting the considerable damage caused by internal trade restrictions. “The harm is immense” she said, explaining that the proliferation of differing regulations discourages both domestic and foreign investment. She pointed to the complex web of rules – at the EU level, within member states and at local administrations – as a deterrent to business.
Grimm stressed the need to address the growing “regulatory thicket” arguing that streamlining rules would automatically reduce bureaucracy and stimulate investment. She urged a shift in focus, suggesting that criticism of the US should be balanced with a commitment to addressing internal EU shortcomings. In the face of competition from global economies like China, Grimm warned that failure to implement meaningful reforms could lead to a deeper crisis.
The European Commission acknowledged the issue, stating that its new Single Market Strategy is designed to tackle ten key obstacles – referred to as “The Terrifying Ten” – including overly complex EU regulations. The strategy aims to create a “seamless, simpler and stronger” market.
However, the European Taxpayers’ Association remains skeptical of actual progress. Michael Jäger, head of the Taxpayers Association of Europe, criticized the Commission, alleging that it has expanded rather than reduced bureaucracy. Data shows the EU passed nearly four times as many legal acts compared to the United States between 2019 and 2024, with over 1,364 new EU regulations implemented by mid-2025, 934 of which originated from the Commission itself.
Markus Ferber, a Member of the European Parliament and economic expert, accused the Commission of burdening businesses with excessive reporting requirements and called for an integrated single market in areas like telecommunications, energy and financial services.
Rudi Bachmann, a German-American economist at the University of Notre Dame, expressed concern that the EU’s controversial trade agreements could further increase its dependence on the United States, predicting that this “self-diminishment” will lead to a lack of respect for Europe – particularly Germany – from global powers.
