Expanding across borders in the EU means navigating a maze of conflicting VAT rules and paperwork, driving up costs. Small and medium-sized enterprises (SMEs), in particular, face disproportionate compliance burdens, making it harder to scale up and compete. To cut red tape and boost competitiveness, the EESC calls for urgent reforms in two opinions adopted during its February plenary, building on the Letta and Draghi reports. Proposals include harmonised financial regulations, AI-driven reporting and a coordinated industrial policy.