European markert

1. SINGLE EUROPEAN MARKET
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Background
Single European Market (SEM) was introduced as a concept of single market through an
original Rome Treaty that was enforced in 1958. The main aim of this treaty was the creation of
a common market that would cover the European territory. The operations of this common
market involved free movement of goods as well as customs union where there was a mechanism
of single customs tariff among the member states. This also involved provision of free movement
with regard to services and workers as well as policies on competition and state aids. These
policies and mechanisms have had significant contributions to the core concept of Single
European Market in the current global market. There were limitations with regard to formal
evolution in single market system until around early 1980s. This was followed by the completion
of custom unions and the abolishment of duties among state members in 1968(Dēmētriou 2014,
72).
However, there was parallel jurisprudence whose evolution was significant due to the
way it affected the system through a series of judgments that led to the promotion of Single
European market. The main objective of the creation of Single European Market was the
development of a common system of legislation that would encourage the interdependency of the
economies of the member states. The tripartite collaboration involving Baltic States is very
significant with regard to its historical background, which has experienced the impacts of new
impulse after joining the EU single market. Baltics nations are collaborators to SEM and other
policies in the common market such as energy policy due to the aspect of business development.
Albania is included in the list of state members since it has been regarded as a potential
candidate for EU accession after the Thessaloniki European Council that took place in June
2003. Five years later the Council secured a new European partnership with Albania.

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It is argued that EU-Albania collaboration facilitated the agreement that came into force
in January 2008 (Bomberg and Corbett 2014, 89). In the absence of appropriate
intergovernmental and supranational structures for decision-making, it was not easy to make
progress beyond more intangible barriers to secure free movement of services, goods, labour and
capital as well as protectionist attitudes that are persistent. The SEM as a customs union entails
free trade in regions with common external tariff on the goods and services that circulate within
the EU. The creation of single market was achieved through the internal market program
(Stothers 2007, 153).
Percentage share of Euro area GDP
Success of Single European Market
The economic integration process in Single European Market has had successful
developments with regard to its major axes. There has been a significant increase in the number

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of member state in terms of custom union for commercial goods from early 1960 to date. The
process of successful development of has also seen the adoption of Single European Act, which
took place in 1986 and offered fresh impetus to the integration of European states (Bomberg et
al. 2012, 79). The achievement of this integration among the European states was realised
through the introduction of a system that ensured removal of cross-frontier goods traffic controls
and the abolishment of all differences in tax as well as the creation unifying standards of
production.
This has allowed for the creation of common markets for goods and services that allows
for accessibility of majority of the companies in Europe as well as government institutions and
industries such as energy, transportations and telecommunications. The Single European Market
has also been successful in securing a unified financial market across Europe by relaxing the
controls of national capital movements (Dēmētriou 2014, 107). The effect of SEM has been
positive in offering support to capital movements and foreign trade. In the years between 1958
and 1872, the intra-trade among the EU member state experienced an increase from about 30 %
to over 50 % of all the entire international trade. This gave a boost to the world trade share of the
European community from 21.9% to 29.8% (Bomberg et al. 2012, 78).
Failures of Single European Market
Contrary to the successes of the SEM across Europe and beyond, there are failures
associated with the introduction and development of this process. The system has experienced
challenges and failures in its attempts towards the creation of a European monetary union. Part of
the failures associated with the development and implementation of SEM policies across Europe
is the economic development, which has been taking place at varying levels, language barrier

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and the impingement of justice and social policy on the economic vision for the SEM and the
continuation of economic among the member states (Staab 2011, 132).
There is also the challenge brought about by the member state pursuing interests of their
own nation at the expense of a common greater good of the European Union. The other problem
and failure are specifically associated with EU directives, which comprise instructions to the
governments of member state to act towards the achievement of particular objectives. It is argued
that the strict interpretation of some of SEM’s directives has subjected consumers and British
companies to disadvantages jurisdictions requiring less demand. Failures of SEM have also
resulted from financial crises, combined with some very real certain concerns regarding
(Welfens 2011, 86). This has had an adverse effect on the single market services taking place
across Europe.
Directives of Single European Market
The Directives on the services associated with SEM are European Union (EU)
legislations whose major objective is the establishment of a common market for the operation of
services within the EU. These Directives have received harsh criticism from the European
politicians in the left wing who also suggested that the Directives would bring about unfair
competition among workers from different parts of Europe. The approval of substantial
amendments to the original SEM Directives was done in 2006 through the involvement of
European parliament. The other reason for the formulation of the service Directives associated
with SEM was to ensure the release of the potential in service markets across Europe. This was
achieved through the removal of administrative and legal barriers to trade. The measures of
simplification foreseen by the Directive should be utilised in significant facilitation of life and

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increase in transparency for consumers who are using services in the single market (Bomberg,
Peterson, and Corbett 2014, 171).
Intellectual property of Single European Market
The intellectual property of SEM was introduced for creating genuine restrictions with
regard to anticompetitive practices and freedom movement, which may be misused. The policies
created in relation to the intellectual property of SEM play an important role in the creation of a
favourable environment to investment and innovation. In this context, Intellectual property of
Single European Market and its implementation is a key element as far as the success of single
market in Europe is concerned (Menon et al. 2012, 95). For most economies in Europe, the
protection of intellectual property with regard to single market is critical not only for the
promotion of creativity and innovation, but also for the improvement of competitiveness and
development of employment.
What would happen if Britain left the EU in terms of trade agreement?
The idea of Britain leaving the EU with regard to trade agreement would certainly have
consequences. This would lead to the termination of a good relationship that Britain has enjoyed
with the EU for close to four decades. This would go to the extent of interfering with the pieces
of investment and trade. This is because several studies have indicated that has been considerable
foreign investment being channelled into Britain as a direct outcome of its EU membership.
Most of the major economies such as the United States, China, Japan and India consider Britain
as their gateway into the EU (John 2014, 87). This would be the case since officials in the United
State have, in the past, expressed their concern citing Britain as one of the member states with a
strong voice at the EU table.

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Conclusion
In conclusion, the introduction and operation of Single European Market has contributed
to a rise in the level of competition in most economies in the global and international markets. In
general, both the member states and the non-member states are able to experience a growth
presently and in the past. There are differences with regard to concrete impacts as a result of
diversity in trade and economic structures but it is important to recognise that the system of
single market has more benefits and successes that challenges and failures to member states.
There is a lot that is yet to be achieved with regard to the development of the single market
concept in the global market. In a free market, there is a lot of potential that is still available and
this cannot be explored and exploited within a short time. This is because, thee are slow process
involving the acquisition of the relevant skills and qualifications as well as alteration of export
and import networks. The concept of single market across Europe plays a significant role in
enhancing the global competitiveness within the European Union. It is thus important for the
European state members to cooperate with properly functional economies in the region for it to
maintain its global influence and prosperity.

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Bibliography
Bomberg, Elizabeth, John Peterson, and Richard Corbett. 2012. The European Union: how
does it work? Oxford [etc.]: Oxford University Press: 78-171
Bomberg, Peterson, and Corbett. 2014. The European Union. How does it work?. Oxford:
Oxford University Press: 74-182
Dēmētriou, Kyriakos N. 2014. The European Union in crisis: explorations in representation
and democratic legitimacy: 72-107
John, Pinder. 2014. The Building of the European Union. Oxford: Oxford University Press: 84-
97
Menon, Anand, Erik Jones, and Stephen Weatherill. 2012. The Oxford handbook of the
European Union. Oxford: Oxford University Press: 95-104
Staab, Andreas. 2011. The European Union Explained, Second Edition Institutions, Actors,
Global Impact. Bloomington, IN: Indiana University Press: 131-133
Stothers, Christopher. 2007. Parallel trade in Europe: intellectual property, competition and
regulatory law. Oxford [UK]: Hart: 152-154
Welfens, Paul J. J. 2011. Financial Market Integration and Growth: Structural Change and
Economic Dynamics in the European Union. Berlin: Springer Berlin: 83-96