From ambition to delivery – Stocktaking June 2026

Since the beginning of the new legislative cycle, the operating environment for European companies has changed significantly. Geopolitical tensions are escalating, security risks are increasing, and economic headwinds are intensifying, adding further pressure on the competitiveness of businesses across Europe. Against this backdrop, determined and forward-looking action by policymakers to strengthen Europe’s competitiveness as a foundation for prosperity, security, and resilience is more urgent than ever.

Companies on the ground do not yet feel the difference

European businesses acknowledge the efforts undertaken by the European Commission and the continued commitment of European policymakers to enhance competitiveness and reduce regulatory burdens. However, these efforts have yet to translate into tangible improvements for companies on the ground. Alarmingly, a majority of BusinessEurope’s members report that the business climate has deteriorated compared to six months ago.

Volatile energy prices and the persistent energy cost gap with major global competitors remain a significant concern. Complex and burdensome regulation continues to constrain investment, innovation, and growth. Barriers within the Single Market still hinder the expansion and cross-border operations of companies of all sizes, particularly SMEs. At the same time, international relations continue to deteriorate, the global technology race is accelerating, and labour market challenges are becoming more acute.

Rapid delivery on europe’s competitiveness agenda is essential

To put the European economy back on a path to growth, the EU must focus on the areas within its control: reducing regulatory burdens, deepening the Single Market, and removing barriers to cross-border trade, investment, and labour mobility.

What is needed now is unity, determination, and rapid delivery on the ambitions already announced. European businesses are counting on policymakers at both EU and Member State level to work together and swiftly translate commitments into tangible results. Europe’s economic success is essential to strengthening its position in the world and safeguarding its long-term prosperity and security.

This document takes stock of the European Commission’s recent initiatives and sets out priorities for the second half of 2026. It identifies further actions needed to reduce regulatory burdens, improve the business environment, and strengthen Europe’s economic competitiveness.