Transforming our industry

Three drivers will transform our industry, support our small and medium-sized enterprises (SMEs) and keep Europe sustainable and competitive. They are

  • the Green transition, supported by the European Green Deal
  • the Digital transition, supported by the EU’s digital strategy
  • competitiveness on the global stage, where Europe must leverage the impact of its single market to set global standards


The single market

The single market gives EU businesses a large domestic market, stimulating trade and competition, and improving efficiency. Its better integration and functioning could generate further growth in many areas, such as

  • manufactured goods: an additional €183 to €269 billion annually
  • services: an additional €338 billion annually

This represents a rise in EU GDP of approximately 12%.

Competition policy is a cornerstone of the single market. It is crucial that EU competition rules are kept fit for a changing world so that they

  • make companies more competitive
  • contribute to a level playing field
  • drive innovation
  • give consumers more choice


  • people icon
    56 millionEuropean jobs created
  • coin icon
    8% - 9%added to EU GDP
  • eu flag
    > 80% of all exporting SMEs sell to other Member States



Unleashing the potential of SMEs

Small and medium-sized enterprises are essential to Europe’s competitiveness and prosperity. Based on the new SME strategy, the EU will support SMEs by

  • encouraging innovation through new funding and digital innovation hubs as part of the sustainable and digital transitions
  • cutting red tape by reducing barriers within the Single Market and opening up access to finance
  • allowing better access to finance by setting up an SME Initial Public Offering Fund (with investments channelled through a new private-public fund) and the ESCALAR initiative (a mechanism to boost the size of venture capital funds and attract more private investment)

Synergies between civil, defence and space industries

The Commission has presented an Action Plan to enhance synergies between civil, defence and space industries. In a challenging international environment, Europe needs to maintain and gain a greater technological edge. The significant scale-up of EU investment in technologies between 2021 and 2027, creates opportunities for synergies that can reinforce innovation and exploit the disruptive potential of technologies between these industries.

Synergies between industries


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