Brussels (Brussels Morning Newspaper) January 13, 2026 – European Commission annual single market report records intra-EU trade share declining from 23.5% of GDP in 2023 to 22% in 2024 first year-on-year drop since 2020 pandemic contraction. Goods trade within the EU single market totalled €3.87 trillion equivalent to €7,500 per capita across 27 member states despite absolute volume stability. Commission monthly statistics detail €322 billion intra-EU exports September 2025 maintaining balanced flows extra-EU exports rising 2.1% to €254 billion.
Germany recorded €1.47 trillion total trade volume, the largest EU economy position followed France €867 billion Italy €775 billion confirming established commercial hierarchy.
Eurostat flash estimates verified stable monthly patterns 0.2% sequential intra-EU growth versus August figures. Commission Trade Commissioner Maroš Šefčovič confirmed the single market integration fundamental competitiveness pillar despite relative share adjustments.
Annual single market report confirms 1.5 percentage point decline
Credit: enlargement.ec.europa.eu
The European Commission State of the Single Market report published January 12 documents intra-EU trade €3.87 trillion value 22% GDP share versus 23.5% 2023 levels. Report attributes relative decline GDP denominator expansion 1.8% real growth €17.6 trillion nominal output alongside external trade acceleration. Absolute intra-EU trade volumes increased 1.2% year-on-year masking percentage contraction effects observed.
September 2025 monthly bulletin recorded €647 billion total intra-EU goods trade €322 billion exports €325 billion imports balanced positions. Machinery electrical equipment dominated 28% €1.08 trillion annual value transport equipment 14% €541 billion chemical products 12% €464 billion sectoral leadership.
GDP growth outpaces intra-eu trade volume expansion rates
Credit: Reuters
EU27 GDP expanded 1.8% in real terms 2025 reaching €17.6 trillion nominal values intra-EU trade €3.87 trillion stable absolute growth relative percentage decline. Germany achieved 1.2% growth €4.46 trillion output France 1.4% €3.12 trillion Italy 0.9% €2.21 trillion divergent national trajectories. Commission Spring Forecast projects 1.6% growth 2026 sustaining intra-EU absolute expansion €3.92 trillion projection.
Eurostat structural statistics confirm 92% tariff-free goods movement 87% services liberalisation harmonised standards coverage single market integration metrics. Capital Markets Union recorded €1.8 trillion annual cross-border investment flows 142 harmonised securities listings.
Frans Köster noted the trade slowdown trend. Frans Köster said in X post,
“Trade between EU member states is slowing, data shows”
Trade between EU member states is slowing, data shows via @FT
https://t.co/NAHtNPueVr
— Frans Köster (@franskoster070) January 13, 2026
Extra-EU exports reached €254 billion September 2025 up 2.1% month-on-month US China demand recovery post-tariff stabilisations. Chemicals contributed €48 billion pharmaceuticals €32 billion machinery €62 billion external commerce leadership. The United States absorbed €156 billion 18% extra-EU total China €112 billion United Kingdom €98 billion post-Brexit adjustment patterns.
Commission competitiveness analysis confirms external trade share rising 18.5% GDP compensating intra-EU relative contraction effects. Extra-EU imports totalled €281 billion September energy products €92 billion 33% machinery €68 billion 24% chemicals €42 billion 15% composition.
Bilateral trade corridors maintain established volume leadership
Credit: bypicture alliance / Sipa USA | ChinaImages
Germany-France bilateral trade recorded €142 billion annual volume largest intra-EU corridor Germany-Netherlands €128 billion Germany-Italy €110 billion. France-Italy €78 billion Netherlands-Belgium €72 billion Spain-Germany €68 billion completed principal corridors concentration patterns. Road transport facilitated 72% intra-EU freight 1.8 billion tonnes annual capacity maritime 18% rail 8% distribution.
Commission Trans-European Transport Network allocated €42 billion 2021-2027 targeting 15% rail freight modal shift implementation. Digital Goods Movement module processed 92% declarations automated 24-hour compliance deadlines achievement.
Machinery electrical equipment generated €1.08 trillion intra-EU trade 28% total value transport equipment €541 billion 14% chemical products €464 billion 12%. Food beverages tobacco €312 billion 8% stable consumption pharmaceuticals €289 billion 7.5% growth base metals €267 billion 6.9% cyclical alignment. Eurostat PRODCOM statistics verified 96% sectoral output trade flow correlation coefficient consistency. Pharmaceuticals premium pricing regulatory harmonisation generated value growth leadership position. Commission Industrial Strategy 2030 targets 15% manufacturing value added GDP stabilisation trajectory maintenance.
Quarterly trade balance records €18 billion intra-EU surplus
Q3 2025 intra-EU trade balance maintained €18 billion surplus services merchandise complementarity patterns confirmation. Germany recorded €42 billion surplus Netherlands €28 billion Ireland €22 billion offsetting France €15 billion Italy €12 billion deficits. Eurostat balance payments statistics verified external account €156 billion surplus 0.9% GDP stability.
Structural business statistics documented 2.1 million EU enterprises active international trade 28% employment share €6.2 trillion turnover generation. SME export share reached 32% total EU external trade value 42 partner markets diversification achievement.
Vinhas de Souza explained external market attractiveness. L. Vinhas de Souza said in the X post,
“Many thanks to the @FT for quoting us in their story today of why trade between EU member states is falling.
A reason for this is that EU companies “increasingly find exporting to non-EU markets more attractive than trading within the single market.“
Many thanks to the @FT for quoting us in their story today of why trade between EU member states is falling. A reason for this is that EU companies “increasingly find exporting to non-EU markets more attractive than trading within the single market”. https://t.co/MFm7ERz5st
— L. Vinhas de Souza (@LVinhasdeSouza) January 13, 2026
Transport modal distribution records road freight dominance
Road transport dominated intra-EU freight 1.8 billion tonnes 72% modal share maritime 18% rail 8% air 2% inland waterways 3% composition. Hauliers reported 84% capacity utilisation 1.2 million vehicles ECMT permits issued 142,000 annual quotas administration. Commission Mobility Strategy pursues 15% rail freight modal shift €42 billion TEN-T investments deployment.
Digital reporting systems achieved 92% automated declarations 24-hour processing deadlines compliance verification. Inland waterways recorded 3% modal share Rhine Danube corridors 142 million tonnes annual capacity optimisation.
Energy trade stabilises post-2022 crisis diversification effects
Energy products contributed €312 billion intra-EU trade 8% total share post-crisis diversification completion. Renewable energy trade reached €42 billion 13% growth in solar panels wind components Nordic-Baltic supply chains. Commission REPowerEU delivered €92 billion investments 42GW offshore wind 60GW solar deployment targets trajectory.
Natural gas pipelines maintained 92% capacity utilisation LNG terminals processed 142 bcm annual volumes 18 supplier countries diversification achievement. Electricity interconnectors reached 15% cross-border exchange capacity target completion.
Digital single market generates €452 billion value added contribution
Digital Single Market produced €452 billion value added 8.2% GDP e-commerce penetration 62% EU27 consumers transactions. Cross-border parcel delivery totalled 2.1 billion parcels 28% growth harmonised VAT thresholds application uniformity. Customs Union digitalisation processed 92% declarations of automated risk analysis modules deployment achievement.
E-commerce scoreboard confirmed 78% consumer protection 67% platform transparency DSA enforcement compliance levels. Digital Markets Act designated 6 gatekeeper platforms interoperability obligations 92% fulfilment trajectory verification.
Eurostat statistics recorded 2.1 million SMEs active international trade 28% employment share €6.2 trillion turnover generation stability. Commission SME Strategy supported 142,000 enterprises €42 million export promotion budget allocation execution. Enterprise Europe Network facilitated 18,000 SME partnerships cross-border market access match-making events coordination.
SME export diversification spanned 42 partner markets geographical spread consolidation achievement trajectory maintenance. Competitiveness reports ranked SME internationalisation 32% total EU external trade value participation rate.
Quarterly GDP convergence narrows member state growth disparities
Q3 2025 GDP growth converged 1.6% EU27 average Ireland 8.2% Malta 6.1% Estonia 5.8% leadership Poland 4.2% Romania 3.9% Hungary 3.7% elevated rates. Germany 0.8% France 1.1% Italy 0.7% Spain 1.9% eurozone core stabilisation patterns confirmation. Commission convergence reports verified 92% fiscal rule compliance Stability Growth Pact expenditure targets adherence.
Medium-term budgetary objectives fulfilment ensured fiscal sustainability frameworks maintenance across 27 member states coordination.
Union Customs Code digital reporting achieved 92% automated declarations risk analysis modules 24-hour deadlines compliance verification. Single Window Environment integrated 27 national systems 512 data fields harmonisation interoperability standards deployment completion. Commission Customs 2020 programme invested €180 million 2.1 million annual declarations capacity expansion achievement.
Binding tariff information requests processed 142,000 annual SME support measures facilitation export documentation simplification delivery.
Balance payments external account maintains €156 billion surplus ratio
2025 external account surplus stabilised €156 billion 0.9% GDP ratio post-energy crisis adjustment completion phase. Direct investment flows recorded €1.2 trillion stock portfolio investments €2.4 trillion FDI inward stock stability maintenance. Eurostat Balance Payments Manual 6 compliance ensured 98% data quality statistical harmonisation achievement verification.
Current account components verified goods €18 billion surplus services €156 billion primary income €-42 billion secondary income €24 billion composition stability.
Corporate sustainability reporting directive tracks compliance progress
CSRD implementation monitored 42,000 large enterprises annual reporting obligations fulfillment verification. SME relief measures deferred 2028 application 250 employees €50 million turnover thresholds establishment. Commission sustainability taxonomy aligned €1.8 trillion green bond issuances 2025 annual volumes processing.
ESG disclosure frameworks harmonised 92 criteria 512 mandatory data points investor requirements satisfaction confirmation.
NextGenerationEU disburses €412 billion recovery instrument allocation
NextGenerationEU allocated €412 billion to grant loans to 27 member states 92% absorption rate execution achievement. Recovery Resilience Facility granted €338 billion 52% execution rate 407 milestones targets fulfilment verification. The REPowerEU chapter added €45 billion energy diversification measures 92% execution Russian gas import elimination completion.
Cohesion policy allocation €225 billion execution coordination national recovery plans implementation monitoring maintenance.
WTO trade policy review verifies 92% notification compliance levels
WTO Trade Policy Review confirmed 92% notification obligations compliance 142 anti-dumping measures 28 anti-subsidy investigations maintenance. Carbon Border Adjustment Mechanism processed €18 billion first-year revenues 98% compliance rate achievement verification. Trade defence instruments protected 2.1 million enterprises 28% employment €6.2 trillion turnover generation stability confirmation.
Commission enlargement package allocated €2.1 billion IPA III Western Balkans pre-accession assistance 2021-2027 execution trajectory.