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Illiberalism’s Challenge to the European Single Market
14/09/2026

FES
FES

How does rule-of-law backsliding affect the EU’s Single Market? This Policy Brief examines how “illiberal state capitalism” in Hungary and Poland distorted the Single Market and provides recommendations for more effectively safeguarding both the rule of law and the Single Market.

The Single Market is a political and economic success story of European integration and is central to the European Union’s competitiveness and prosperity. The rule of law is a prerequisite for a well-functioning Single Market: it provides the foundation for mutual trust and economic cooperation among Member States. However, rule-of-law backsliding in some Member States threatens not only the EU’s foundational values but also its economic potential.

This Policy Brief for the Friedrich-Ebert-Stiftung’s EU Office in Brussels examines how illiberalism undermines the rule of law and impairs the functioning of the Single Market. It also sets out recommendations for more effectively safeguarding both the rule of law and the Single Market under the Multiannual Financial Framework 2028–2034.

Illiberalism's challenge to the European single market


 

Team & authors

About the IEP Policy Paper project: Research-based analysis for European policy debates: IEP Policy Papers examine key political challenges in depth, combining original research with concrete conclusions and policy recommendations.

ISSN/ISBN:
Image copyright: FES, unsplash/ lingyu-zeng