1. City of London School – extra materials
European Single Market

2. The Single Market – why bother?
Barriers to trade in services penalise in particular small and medium sized enterprises (SMEs), which are disproportionately affected by complex administrative and legal requirements and therefore more likely than larger firms to turn down cross-border opportunities because of them. Given the predominance of SMEs in service operations, this has clearly acted as a considerable hindrance the development of the Internal Market for Services.

3. What is the Single Market?
Signed 1986
non-discrimination - between domestic and imported goods
mutual recognition - accept products produced in other countries but of different standards
Burden of Proof - health a safety issues must be proven by scientific evidence

4. The Single Market Free movement of people, product and capital
removed many barriers to free trade
technical standards
costly documentation
So now we must meet product standards
harmonised tariff rates
adapt to ease of trading conditions e.g. inspections at customs posts

5. Single Market Free access to markets access to factors of production
large markets - 450m+
protection from external competition
increased competition
Drive for efficiency and standards
with a common currency they have no transaction costs
transparency of prices
comparisons of quality/non-price competition

6. Does it have problems? Lack of choice? Increased costs?
Reduced market share as competition increases?
Lack of efficiency as barriers protect?
Marketing may have to be changed to appeal to diverse markets?
What of enlargement – can it cope?

7. Cohesion Spending Spain: 12.3bn Poland: 4.1bn Portugal: 3.3bn
Greece: 3.3bn
Hungary: 1.1bn
Czech Republic: 936m
Lithuania: 608m
Ireland: 584m
Slovakia: 570m
Latvia: 515m
Estonia: 309m
Slovenia: 188m
Cyprus: 53m
Malta: 21m

8. Deeper Integration New members trade with other EU countries
Czech Rep = 79%
Estonia = 73%
Cyprus = 60%
Latvia = 77%
Lithuania = 58%
Hungary = 72%
Malta = 60%
Poland = 75%
Slovenia = 72%
Slovakia = 80%
UK = 57%

9. Deeper Integration Belgium 75% Denmark 72% Germany 85% (highest)
France 70%
Ireland 65%
Italy %
Spain 72%
Luxembourg %
Netherlands %
Austria 78%
Portugal 80%
Finland 54%
Sweden 65%

10. Growth rates – new members
Bulgaria 5.5
Cyprus 3.7
Czech Republic 6.1
Estonia 9.8
Hungary 4.1
Latvia 10.2
Lithuania 7.6
Malta 2.5  
Poland 3.4
Romania 8.5
Slovakia 6.1
Slovenia4.0

11. Growth Rates – older member states
Austria 2.0
Belgium 1.5
Denmark 3.2
Finland 2.9
France 1.2
Germany 0.9
Greece 3.7
Republic of Ireland 5.5
Italy 0.0
 Luxembourg 4.0
Netherlands 1.5
Portugal 0.4
Spain 3.4
 Sweden 2.7
United Kingdom 1.9

12. The future of Single Market
Working towards services being included
Working towards capital market being included