New EU regulation aims to improve the resilience of the single market in times of crisis.

With the new Regulation (EU) No 2024/2747 on safeguarding the functioning of the single market in times of crisis, the European Union (EU) aims to improve the resilience of the European Economic Area and ensure its stability. The EU is thus responding to the weaknesses that became apparent during the COVID-19 crisis and is setting a new framework for anticipation, preparation and management of crises. In addition to economic stability, the regulation also guarantees social security in times of crisis.

A comprehensive framework for crisis management

The regulation provides for a series of measures aimed at improving the resilience of the European single market. The aim is to guarantee the free movement of goods, services and people and to ensure the availability of crisis-relevant goods and services.

One key measure is the introduction of an emergency and resilience committee. In future, this committee will act as a central coordination centre and advise the European Commission. It will analyse potential risks and make recommendations for necessary measures.

With the introduction of a "vigilance mode" for the single market, a new framework for overcoming impending crises is being established. Among other things, regular stress tests and simulations are to be carried out in order to review and increase the resilience of the single market.

The emergency mode comes into force once a crisis has a significant impact on the single market. In this case, targeted measures can be taken to secure supply chains and free movement within the EU in order to minimise the negative impact on the single market and ensure the stability of the Union.

Innovative approaches and cooperation

In order to be able to respond quickly and efficiently, the regulation promotes the development of digital tools and voluntary crisis protocols for companies. Interest groups such as economic players, social partners and civil society are also involved in the process. Training and simulations are intended to better prepare the concerned parties for future crises.

Significance for social cohesion

However, the new regulation not only contributes to economic stability in times of crisis, but also has a positive effect on the maintenance of social security. By stabilising the labour markets, it secures the financing of social security schemes, thus guaranteeing social participation even in times of economic uncertainty.

For example, the short-time working scheme during the COVID-19 pandemic has made a significant contribution to protecting employees and their jobs, thereby also ensuring seamless payment of contributions to the social security institutions. Transferring these and other successful regulations to the European level and coordinating them better between the Member States is an essential part of the regulation.

In the health sector, it is also supplemented by the HERA (Health Emergency Preparedness and Response Authority). While HERA focuses on the prevention and management of health crises, the Single Market Regulation ensures the stability of European supply chains.