The Single Market is composed of all of the national markets within the EU. With almost 500 million consumers since the enlargement of the European Union in 2007, it is the biggest market in the world. Moreover, it was one of the key factors concerning the creation of the European Community. The establishment of the Single Market represents a liberal entity, in which the suppression of barriers for the exchange of goods is perceived as a factor of growth and encouraging employment. The establishment of the Market was based on 3 crucial steps: -
Custom union (no more custom barriers for the intra-community exchanges, effective on 01/07/1968) -
The Single European Act (adopted in 1986, fixed at the 01/01/1993 the completion of the Single Market) -
Maastricht treaty (1992, it opened the way for the Euro as a unique currency for 16 of the 27 member state of the EU) In order to realise the Single Market, it was necessary to insure the free trade of people, goods, services and assets. Therefore, national rules have been harmonized thanks to the principle of non-discrimination according to the nationality, the mutual recognition of national laws, and the application of the community directives for each member state. To accompany this process, rules concerning competition have been created: mainly controls concerning fusions and agreements for companies. The Single Market allowed considerable growth of intra-community exchanges. Nevertheless, the total unification of financial markets has not been accomplished. On the one hand, this report will explain the expectations of the Single Market concerning the economic performance of the EU. On the other hand, it will give evidence for the indication that such an improvement has occurred.
Expectations of the Single Market concerning the economic performance of the EU
The Single Market
At the centre of the European Single Market, people, goods, services and capital flow as freely as in a Member State. Whether for business or pleasure, European citizens through EU customs and enjoy of products from the whole EU in their own country, thanks to the Single Market. The creation of this market, which seems to be obvious nowadays, is one of the greatest achievements of the EU. Out of the crisis
Qualified professionals can work anywhere in the EU. The Single Market constitutes a valuable bulwark against the current economic crisis. It encouraged Member State to face it together instead of rejecting their problems to the neighbour. Instead of using some short-term protectionist measure that would have made the situation worse, the Member State agreed on a common plan that aspires to stimulate demand by public investment, also to strengthen the financial sector regulation and to create sustainable employment. An ongoing process
Successes of the Single Market must not make us forget its deficiencies. Services sector, for example, has trouble opening itself even if there is a new important legislation adopted in 2006 that allows societies to offer services in other Member State from the country of origin. The financial services sector and the transport sector, where subsist national markets, are late. Finally, the diversity of national tax systems is harmful to the efficiency of the market. Most of financial services have been liberalised. Consumers can easily use their debit or credit card abroad and transfer money from a Member State to another one. Bank charges for border transfers have been reduced. The EU has also decided to open the postal services market. This opening aims to reinforce competition, encourage lower prices and improve the quality of services. Protect the Single Market
The Single Market is principally based on the competition and regulators to guarantee the free movement of goods and services with fair conditions. The free movement of people is guaranteed by the Schengen agreement. This agreement eliminates controls for most of frontiers of the EU and...
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