European leaders including Prime Minister Robert Abela have comes to terms on an agreement to reduce bureaucracy related to the single market by 25 per cent, the government said in a statement Thursday,’

They also agreed on the need for a competitiveness pact that continues to develop to provide businesses with opportunities to operate more sustainably and to address modern needs, such as digitalization and green initiatives.

Speaking at the council, Abela said the EU must tackle challenges concerning the single market, while considering the aspirations of European citizens.

Former Italian Prime Minister Enrico Letta, who was appointed by the European Union to produce a report on the Single Market, presented his report.

The government said that this report will be analysed in detail, with social partners in the Maltese Council for Economic and Social Development (MCESD) to be asked to give their reaction.

Abela said that in various areas such as energy and access to medicine, the single market must truly show that it is available to everyone equally, including small member states and those on the periphery of Europe.

Abela also referred to the effect on small states and the need to avoid a one-size-fits-all policy.

On Thursday, the European Commission also proposed to start negotiations with the United Kingdom to allow young people to move freely, work and study in both regions after Brexit — the U.K.'s departure from the EU four years ago.

According to the EU, the withdrawal of the United Kingdom from the EU following a referendum in 2016 has damaged mobility between the two areas.

“This situation has particularly affected the opportunities for young people to experience life on the other side of the Channel and to benefit from youth, cultural, educational, research and training exchanges,” the Commission said.

When the U.K. was still a member of the economic and political bloc, its nationals had the right to live and work freely in the EU, with reciprocity for EU nationals in the U.K. Under the agreement proposed by the EU's executive arm, EU and UK citizens between 18 and 30 years old would be eligible to stay up to four years in the destination country.

The deal would also allow equal treatment of EU and UK students in the field of university tuition fees. Most EU students must now pay international tuition fees if they want to study in the U.K. The Commission says these vary between 11,400 and 38,000 pounds ($14,200-$47,300) per year and are a strong deterrent for EU students who generally don't have to pay as much within the bloc.

The Commission’s recommendation will be discussed by EU member countries who must give the green light before the executive arm can start negotiations with the UK.

“We have successful Youth Mobility Schemes with 13 countries, including Australia and New Zealand, and remain open to agreeing them with our international partners, including EU member states,” the British government said in a statement.

The U.K. has its own Youth Mobility Scheme, which it has offered to some EU member states. The Commission believes the British plan is less ambitious than its own proposal.

“Our agreements provide a valuable route for cultural exchanges providing partner countries are also willing to offer the same opportunities for young British people,” the British government added.