This Week in the Single Market — Brussels (#21, 2026)
Commission and Parliament move on customs, single market, VAT fraud; major EU-US trade deal advances; multiple Commission infringement actions; new rules on company, tax and trade data; automotive and customs regulatory changes.
May 31, 2026 to June 06, 2026
Commission and Parliament move on customs, single market, VAT fraud; major EU-US trade deal advances; multiple Commission infringement actions; new rules on company, tax and trade data; automotive and customs regulatory changes.
📋 In This Week's Newsletter
• 📅 This Week's Calendar in Brussels
• 🇪🇺 European Commission
• ⚖️ EU Legislation
• 🤝 EU Council
• ✒️ EP Committee Work
This Week's Calendar in Brussels
- Committee on International Trade (INTA): On June 08, the European Parliament's Committee on International Trade (INTA) is scheduled to meet. Agenda includes: Chair’s announcements; Date of next meetings; Monitoring and controlling drug precursors and repealing Regulations (EC) No 273/2004 and (EC) No 111/2005.
European Commission
Commission June infringements package covers internal market compliance, trade rules, taxation, and customs
On 3 June 2026, the European Commission released its monthly infringements package, detailing legal actions against Member States for failure to comply with EU law. Internal market proceedings include a letter of formal notice to Germany (INFR(2026)2056) for restricting freedom of establishment under Directive 2006/123/EC (Services Directive) and TFEU Articles 49 and 56. The Commission referred France (INFR(2024)4005) to the Court of Justice for limiting veterinary company establishment and cross-border services, which contravenes freedoms laid down in Directive 2006/123/EC. On customs cooperation, the package includes actions related to implementation of DAC7 (Council Directive 2021/514/EU) in Poland for digital platform operator reporting obligations, and procedures against Spain over discriminatory tax rules for non-residents leasing property.
Further items address compliance with State aid and financial framework policies. The Commission continues to monitor Single Market functioning and legal certainty for businesses, with an emphasis on removing internal market barriers and upholding regulatory consistency.
Eurobarometer survey finds SMEs report persistent skills shortages and procedural barriers to hiring outside EU
A new Eurobarometer, published 31 May 2026, reports that 46% of surveyed European SMEs find it difficult to recruit suitably skilled workers, with only 14% having attempted to hire from outside the EU in the last two years. Of these, 54% cited the process as difficult. Administrative and immigration procedures are the most commonly cited obstacle, affecting 31% of respondents, followed by challenges finding candidates and language barriers. SMEs report limited awareness and use of public support channels for non-EU recruitment, instead relying more on private agencies. The Commission highlights upcoming initiatives such as the 'EU Talent Pool,' designed to facilitate cross-border hiring for sectors facing chronic labour and skill shortages. The findings contribute to ongoing policies under the Commission’s EU Visa Strategy and the 2026 Single Market priorities.
EU Legislation (Official Journal)
Commission Implementing Regulation (EU) 2026/1183 introduces updated procedural rules on preferential origin of goods
Published 3 June 2026 (OJ L 2026/1183), this regulation updates Implementing Regulation (EU) 2015/2447 to streamline procedures on preferential origin, notably by restructuring the section on origin, introducing new definitions for documents on origin, and enhancing the Registered Exporter system (REX). It details simplified procedures for approved exporters, requirements for electronic proof-of-origin certificates (EU e-PoC), new supplier declaration processes, and allows the use of supplier’s declarations for single or multiple consignments. The act, based on Regulation (EU) No 952/2013 (Union Customs Code), enters into force 20 days after publication and contains staggered dates for particular provisions, supporting digital transformation and Single Market harmonisation.
Commission Delegated Regulation (EU) 2026/699 amends vehicle approval rules on OBD information and cybersecurity
On 3 June 2026, Regulation (EU) 2026/699 amends Regulation (EU) 2018/858 regarding standardised access to vehicle on-board diagnostics (OBD) and maintenance information, addressing cybersecurity obligations from Regulation (EU) 2019/2144 and UN Regulation No 155. It introduces conditions and procedures permitting vehicle manufacturers to require authentication and traceability for access to OBD data, as well as obligations to comply with GDPR (Regulation (EU) 2016/679). The changes respond to evolving digital security threats affecting the automotive sector.
EU Council
Justice and Home Affairs Council meets on migration, Schengen, internal security, and Ukraine displaced persons
On 4 June 2026, ministers exchanged views on migration management, status of Schengen internal border controls, internal security, and measures relating to the temporary protection of displaced Ukrainians. The meeting also assessed the implementation of the EU Drugs Strategy, reflecting developments affecting the Single Market and cross-border movement.
EP Committee Work
FISC Committee public hearing evaluates VAT fraud and reverse charge mechanism effectiveness
On 2 June 2026, the Subcommittee on Tax Matters (FISC) organised a public hearing examining the impact and future of the reverse charge mechanism for addressing VAT fraud, especially Missing Trader Intra-Community fraud, under Articles 199a and 199b of Directive 2006/112/EC (currently in force until 31 December 2026). Experts including Prof. Rita de la Feria (University of Leeds) and Christine Weinzierl (Accountancy Europe) discussed evidence on the reverse charge as a partial but not comprehensive solution, and highlighted the growing impact of digital reporting requirements under the forthcoming VAT in the Digital Age (ViDA) package. The committee reviewed feedback on the administrative, compliance, and risk implications for fraud prevention within the Single Market.
IMCO Committee discusses Single Market barriers, defence readiness project permitting, and safe construction materials
The Internal Market and Consumer Protection (IMCO) Committee convened on 2 June 2026 for a range of Single Market topics. Members heard reports on negotiations to accelerate permitting for defence readiness projects (COM(2025)821), debated simplification of intra-EU defence procurement, and held an exchange on the implementation of new Commission strategies for competitiveness with EVP Stéphane Séjourné. Further items included consideration of business digital wallets (COM(2025)838) and extended producer responsibility rules, as well as the safe and sustainable provision of construction materials under the revised Construction Products Regulation.
AGRI Committee discusses amendments to CAP, school schemes, and agricultural generational renewal
On 2 June 2026, the Agriculture and Rural Development (AGRI) Committee engaged in debates on the Commission proposal to amend Regulation (EU) No 1308/2013 concerning the EU school fruit, vegetable and milk scheme (COM(2025)553) and the creation of a protein sector. Members also considered the draft report on generational renewal in agriculture and discussed the Commission's Fertilisers Action Plan. Additional agenda items addressed issues on supply chains and marketing standards for protein crops, cheese, and meat aimed at safeguarding continuous supply during crisis periods.
