The Covid-19 pandemic exposed flaws in the European domestic market. Early unilateral actions by Member States and gaps in transparency hindered the free flow of vital supplies such as respirators and masks when they were most needed, complicating the European response and worsening the crisis. In response, the European Commission proposed a new instrument this week called the Single Market Emergency Vehicle, designed to enable faster, coordinated action. The initiative now moves through negotiation between the Council and the European Parliament and would grant the Community Management new powers, including the authority to compel companies to expand or redirect production where necessary.
The mechanism comprises three action stages: emergency mode, surveillance mode, and emergency mode. In the first stage, the goal is to build a network for coordination and communication, to prepare contingency plans and improve preparedness. The second stage, surveillance mode, activates if a threat to the single market is detected. In this case, Brussels and Member States would monitor the supply chains of strategic goods and services closely and establish strategic reserves. When a crisis with broad impact on the single market occurs, Member States can advance to the third stage and, by qualified majority, trigger the emergency mode.
Unlike the initial phase of the pandemic, Member States would not be allowed to restrict the free movement of goods, services, or people in the single market; any such measures would have to be justified as absolutely necessary. The European Commission would be empowered to issue recommendations to governments, ensure access to crisis-related assets, facilitate the expansion or reorientation of production facilities, or speed up the granting of permits and certificates. It may also advise governments to specifically allocate strategic reserves built up during the surveillance phase.
open single market
During the pandemic, certain industries, including fragrance and beverage sectors, redirected production to meet demand for hydroalcoholic gels. In exceptional cases, the Commission could request information from companies about their production, accelerate market access for essential products, or invite firms to prioritize orders for goods needed during a crisis. This approach was explained in remarks by Margrethe Vestager regarding the proposed arrangement. Companies may refuse if they provide serious reasons, but such refusals must be justified and transparent.
Officials emphasize that, in the face of new crises, the single market will stay open and ensure the availability of goods vital to protecting European citizens. The aim is to secure better coordination with Member States, reduce the crisis’s impact on key industries and the broader economy, and maintain a robust, open market that remains resilient in difficult times. Proponents describe the mechanism as a structural response that protects the free movement of goods, people, and services, while strengthening the continent’s readiness to respond to evolving global challenges. It is framed as a means to keep Europe competitive and well-integrated with global partners, ensuring that essential assets remain accessible when emergencies arise.