The European Commission warns of the fall in private investment and intra-community trade in its latest competitiveness report

Analysis of European competitiveness: A single market under pressure

La Comisión Europea presented the Annual report on the single market and competitiveness 2026The sixth installment in a key series for assessing the health of the economic bloc. The document, based on 29 Key Performance Indicators (KPIs)It offers a detailed analysis of companies' ability to innovate and compete in an increasingly hostile global environment. The results are mixed: six indicators show improvement, six have worsened, and 15 remain stagnant.

One of the most critical points highlighted by the European Commission is the setback in the private investment as a percentage of GPD and the decline in the share of trade between Member States. These data suggest a slowdown in internal trade integration, a fundamental pillar for the resilience of the Unión EuropeaThe report also warns about the increase in the average time required to develop regulations and the rise in infringement proceedings related to the transposition of directives.

Advances in digitization, sustainability and administrative simplification

On the positive side, the report highlights the solid progress in the digital transformation and the energy transition. The proportion of companies in the UE comprising Artificial IntelligenceCloud computing and data analytics have experienced remarkable growth. At the same time, the generation capacity and consumption of renewable energy have improved, supported by an increase in investments InvestEU intended for industrial transition.

New this year, the Comisión Europea has introduced specific indicators to measure the administrative simplificationAccording to the data provided, the simplification proposals adopted have generated an estimated administrative saving of 15.000 millones de eurosFurthermore, monitoring has begun on the complete digitization of administrative procedures, an essential step in reducing bureaucracy in the single market.

Indicator Category	State in 2026	Specific Areas
Indicators in Improvement	6 indicators	AI, Cloud Computing, Renewable Energy, Investments InvestEU.
Indicators in Retreat	6 indicators	Private investment, Intra-community trade, PISA scores, Skilled labor shortage.
Stability/No Change	15 indicators	Labor productivity, R&D spending, Patent applications, Venture capital.
Simplification	New Indicator	Administrative savings of 15.000 billion euros.

Structural challenges and priorities for 2026

Despite technological advances, the UE It faces persistent bottlenecks. labor productivity (measured in GDP per hour worked) and public and private spending on R+D They remain stagnant, which could affect long-term competitiveness compared to other economic powers. The labor shortage in sectors key to the green transition and the decline in educational attainment (according to the report) PISA) are emerging as structural threats to the labor market.

For the remainder of fiscal year 2026, the Comisión Europea has announced that it will focus its efforts on removing specific obstacles, with particular attention to the delinquency and the barriers in services linked to sustainability. The Executive will use dialogue with Member States and, if necessary, resort to infringement proceedings to ensure compliance with EU legislation.

This analysis is complemented by the Single Market and Competitiveness Scoreboardas well as with reports on the application of Clean Industrial Pact and the activity of Grupo Operativo para el Cumplimiento de la Legislación sobre el Mercado Único (SMET).

Key points and frequently asked questions about the 2026 Competitiveness Report

1. What is the main savings achieved through administrative simplification?

The simplification proposals adopted by the Comisión Europea have resulted in an expected administrative saving of approximately 15.000 millones de euros for businesses and citizens.

2. Which indicators have shown the worst performance this year?

Among the indicators that have worsened, the following stand out: private investment as a percentage of GDP, the volume of trade between member states, school performance (PISA) and the increase in bureaucracy in the transposition of directives.

3. In which technological areas has the EU's position improved?

La Unión Europea has significantly improved in business adoption of Artificial Intelligence, the use of cloud services, data analysis, and installed capacity of renewable energy.

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