Four freedoms of the EU single market

Freedoms of single market The single market, which was completed in 1993 works on the basis of four freedoms of movements: goods services people capital throughout the European Union

Free movement of goods this principle implies that national barriers to free movement of goods within the EU should be removed, goods must be free to move around the EU, being bought and sold without any obstacles

Free movement of goods the origin lies in the Treaty of Rome which recommended elimination of custom duties between member states, elimination of quantitative restrictions on imports and all measures having equivalent effect and setting up common customs tariff

Free movement of goods customs union was created by stages between 1958 and 1968 by abolishing tariffs and quota barriers to mutual trade of member states and creating a common external tariff although customs duties disappeared, different national norms and regulations (known as "non-tariff barriers") continued to obstruct the movement of goods

Free movement of goods Aim: to maximize european trade by removing barriers Opportunities: -for producers: wider market, common standards on products -for consumers: greater choice of goods, lower prices

Free movement of services means that architects, insurance companies, advertising companies and other can offer their services anywhere within the whole EU freedom to establish a company on territory of another EU member state or only to provide services there are included in the Treaty of Rome

Free movement of services Opportunities: - for business: expansion to bigger market, fair competition - for consumers: greater choice of services, lower prices

Free movement of people means more than just unbounded travel (Schengen Agreement eliminated passport controls was agreed in 1985; put into effect in 1995). every EU citizen may live and work anywhere in the Union trainees and students can gain experience by studying and working abroad

Free movement of people procedures for how the EU countries recognize professional qualifications that citizens have obtained in another EU country employers keep their employment rights, including social security and pension entitlements social security includes also family members

Free movement of people Opportunities: workers more mobile, free choice of workplace within EU, employment under the same legal framework like citizens of member states

Free movement of capital means that capital can flow freely between the member states the liberalization of capital movements and payments has accompanied the consolidation of the single market European citizens and companies have free access to financial services in all member states, can conduct financial operations abroad

Conclusion Treating the EU as one territory where people, money, goods and services interact freely stimulates competition and trade, and improve efficiency. The increased choice of goods and services will raise quality and cut prices. It is the basic recipe for prosperity.

Conclusion Although the single market has existing for 15 years now there are still some limits as far as its four freedoms are concerned: member states can carry out random identity checks at frontiers, short-term restrictions on citizens from new member states taking up jobs exist in some other EU countries, "non-tariff barriers" are very often difficult to find and remove.

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