Internal Market Free Movement of Goods Free Movement of Persons Simina Iancau, Lida Sherafatmand, and Massimiliano Colombi

Free Movement of Goods 50 years from the Treaty of Rome (1957) to the EU (2007)  Economic and social progress There have been three key milestones since the EU has been founded: - Creation of Customs Union - The Single Market - Economic and Monetary Union

Definition: The principle of free movement of goods is one of the cornerstones of the internal market. This principle implies that national barriers to the free movement of goods within the EU be removed.( see www.ec.europa.eu)

Legal Instruments: Article 28, 29, and 30 of the EC Treaty which prohibit measures which have an effect equivalent to quantitative restrictions in intra Community trade. Decision 3052/95/CE of the European Parliament and Council of Ministers dated the 13 December 1995 established a procedure of information exchange between Member States on national measures which derogate from the principle of free circulation of goods within the Community. There is ample case law of the Court of Justice concerning Articles 28 to 30 of the Treaty. This case law serves as a basis for a practical guide to the concepts and application of Articles 28 to 30 of the EC Treaty. Since the case "Cassis de Dijon"  the principle of Mutual Recognition, has been used in the process of free movement of goods.

Benefits: The free movement of goods has generated nearly €900 billion in extra prosperity-about €6000 per household- in its first ten years. It has contributed to a 30% increase in trade in manufactured goods in the EU since 1992, thus increasing the selection of goods available and increasing competition. It has made the EU more internationally competitive. For example EU export to countries outside the EU increased from 6.9% of the EU GDP in 1992 to 11.2% in 2001. It has boosted purchasing power through pressure on prices. The gap between the EU’s highest and lowest prices has been narrowing; some goods are cheaper in absolute terms.

Free Movement of Persons Definition: “this freedom enables citizens of one Member State to travel to others, alone or with their families, to work there (permanently or temporarily), to visit places as tourists or simply to live there. The idea behind EU legislation in this field is that citizens from other Member States should be treated equally with domestic ones – they should not be discriminated against.” (Wikipedia Encyclopaedia)

In the context of EU integration: European citizenship (Maastricht Treaty 1992) Empowerment of the labour market for more growth (Lisbon Strategy 2000) Adoption of common values of fundamental human rights ( European Convention on Human Rights- 1950) Help easier intercultural dialogue (The EC-Treaty art. 151 (1): “flowering of culture”…”respecting their national… diversity”)

Basic Legal Instruments and components: - Article 39 (ex 48) of the EC Treaty - Regulation (EEC) No 1612/68 - Community law by Directive 73/148/EEC - Council Directive 64/221/EEC of 25 February 1964 - Regulation 1408/71 of 14 June 1971 - Citizenship Directive 2004/38 COMPONENTS: - Issuing of Visas (students, workers, residences) Family and dependents of workers Coordination of Social security systems, Invalidity insurance EURES, ( University exchanges for students (e.g Erasmus) Vocational training exchanges (e.g. Leonardo Da Vinci) Protection of human rights ( European Monitoring Centre on Racism and Xenophobia- 1998, Charter of Fundamental Rights- 2000)

Going ahead and meeting the challenges: Patent system European Year of Equal Opportunities, anti-discrimination policies  Eastern European Countries feeling disadvantaged because of ‘transitional periods’. Fear of losing national identities “Inform citizens; ensure strict compliance with existing Community law; make Community law on the free movement of persons easier to understand and to restructure it around the concept of "citizenship of the Union"; consider substantive changes to existing law.” (conclusions suggested by EU officials: http://europa.eu/ ) Adjusting of the welfare systems for dealing with migrant citizens after the transitional periods are over

The Internal Market Today Important benefits for citizens and businesses

Challenges: The internal market is still not a reality in all areas Enlargement Globalisation is changing profoundly how our economy works Rapid technological change is affecting traditional patterns of generating wealth

Why does the European Commission want the integration of internal markets of the EU member states?

Priorities for Future Internal Market Policy A stronger focus on fostering market dynamism and innovation Better regulation Better implementation and enforcement Taking better account of the global context Investing more in information and communication