Lookahead: Internal market and industry

Lookahead: Internal market and industry

Policy Analyst Marie Le Beuve looks ahead at the key EU Internal market and industry developments to watch in the second half of 2026.

With just over four months remaining in 2026, the Commission’s internal market and competition agenda will be dominated by efforts to simplify EU rules, strengthen enforcement, and improve European competitiveness. Several major proposals are expected before the end of the year, particularly on public procurement, product rules, competition enforcement, and State aid, while the co-legislators will continue work on files ranging from EU Inc. to the Omnibus IV simplification package. 

A major development will be the Commission’s proposed revision of the EU public procurement rules, currently expected on 9 September. Building on its evaluation of the 2014 procurement directives, the Commission is expected to simplify and modernise the framework while making greater use of procurement to support sustainability, resilience, and strategic autonomy. One of the politically sensitive questions will be the possible introduction of “Made in Europe” criteria for strategic sectors. 

Later in September, attention will turn to the European Product Act, currently expected on 30 September. The package will combine a revision of the Standardisation Regulation with an update of the framework for product rules and market surveillance. Together, the initiatives are intended to speed up European standard-setting, simplify compliance, and strengthen enforcement, particularly in response to the rapid growth of e-commerce and imports from third countries. 

Competition policy will also feature prominently. The Commission is expected to adopt its Guidelines on exclusionary abuses of dominance in Q3, replacing the 2008 Guidance on Article 102 TFEU and incorporating developments in EU case law and enforcement practice. A revision of EU antitrust procedural rules, including Regulations 1/2003 and 773/2004, is also expected in Q3, with the Commission seeking faster investigations, more modern procedures, and stronger cooperation with national competition authorities and courts. 

State aid rules are another area to watch. The Commission is consulting until 4 September on its draft revised Rescue and Restructuring Guidelines, which would notably bring the steel sector within their scope and adjust the treatment of certain innovative startups. The broader General Block Exemption Regulation (GBER) is also under review, with a revised Regulation expected by the end of 2026 following the consultation completed in April. 

Looking further ahead, the Commission plans to present an Advanced Materials Act recommendation in Q4, aimed at strengthening Europe’s advanced materials ecosystem from research through to industrial deployment. A revision of the Consumer Protection Cooperation Regulation is also expected in Q4, with a particular focus on stronger cross-border enforcement and action against traders operating from outside the EU. 

Other Single Market initiatives will extend into 2027. A Construction Services Act, intended to reduce fragmentation and facilitate cross-border provision of construction services, is expected in Q1 2027. This will be followed by a proposal to tackle unjustified territorial supply constraints in Q2 2027, addressing practices that restrict retailers’ ability to source products across Member States and can contribute to differences in consumer prices. 

The future of the planned Competitiveness Coordination Tool is less clear. Although the Commission had announced the initiative as part of its Competitiveness Package and initially envisaged adoption in January 2026, this did not take place and no new timetable has yet been provided. 

Among the most politically significant files under negotiation is the Commission’s proposed EU Inc. – or 28th regime – corporate legal framework, presented on 18 March. The optional EU-wide company regime is intended to make it easier for startups and innovative companies to establish and scale across the Single Market through harmonised corporate rules and digital procedures. In Parliament, the JURI Committee is expected to vote on Rapporteur René Repasi’s report on 7 September, while EU ministers are due to hold a policy debate at the Competitiveness Council on 24 September

The Omnibus IV package is considerably further advanced. Parliament and the Council reached a provisional agreement in June on measures introducing a common definition of small mid-cap companies, extending selected SME regulatory benefits, and advancing the “digital by default” approach across EU product legislation. The compromises also harmonise the use of common specifications where harmonised standards are unavailable. Following committee endorsement in Parliament in July, the different Omnibus IV files now await formal adoption, with plenary consideration provisionally scheduled for 23 November. 

Negotiations will also continue on the Single Market and Customs Programme for 2028–2034, which would consolidate EU funding for the Single Market, customs, taxation, anti-fraud measures, and European statistics. Parliament’s IMCO Committee adopted its report in July, with a first-reading position expected in September. However, agreement on the programme’s financial provisions will ultimately depend on the wider negotiations on the next Multiannual Financial Framework. 

By contrast, the proposed Late Payment Regulation remains stalled in the Council. Parliament adopted its position in April 2024, but Member States remain divided over issues including maximum payment periods, contractual freedom, enforcement arrangements, and the Commission’s choice of a regulation rather than a directive. Without a Council mandate, trilogue negotiations cannot begin, and the file does not currently feature among the Irish Presidency’s priorities. 

Progress also remains limited on the proposed European cross-border associations framework and its accompanying Regulation adapting the Internal Market Information System and Single Digital Gateway. Parliament adopted its first-reading positions on both files in 2024, but the Council has yet to agree its negotiating position. 

More progress has been made on the Commission’s proposed e-declaration portal for posted workers. Following three trilogues, Parliament and the Council reached a provisional agreement on 23 June 2026 on the voluntary multilingual interface connected to the Internal Market Information System. The agreement now awaits formal confirmation by both institutions.

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Lookahead: Trade

Policy Analyst Matteo Sarais looks ahead at the key EU Trade developments to watch in the second half of 2026.

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