The Single Market in the European Union

2093 Words9 Pages
Introduction: 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…show more content…
Nowadays, it does not exist land border controls between 22 Member States of the Union anymore. 5 countries continue to make border controls inside the EU: Cyprus, Ireland, the United Kingdom, Bulgaria and Romania. Eliminating barriers to trade and to free movement constitute a considerable asset for traders and regular travellers. However, a lot of people try to abuse this system for criminality. In order to face this criminality without borders, the EU has established a system, also without borders, a police and judicial cooperation. Europol is the entity created to face these problems. From the common market to the unique currency Since 2007, 27 countries establish economic relations “without barriers”. The Rome treaty, then the Single European Act aspire to suppress all obstacles impeding employment, goods, services and capital market. The Maastricht treaty follows this process of economic integration with the establishment of an economic integration with the single currency, the Euro. The free competition between goods, services, capital and employment has to increase growth. This allows obtaining economies of scale resulting of the market opening, a downward convergence of prices, a new dimension of markets both volume and value in order to increase performance. The productivity gains benefit to businesses, households, States and external markets. Prices reduction stimulates the demand and provides competitiveness without inflation
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