Internal MarketInternal Market

Free Movement of GoodsFree Movement of Goods Free Movement of PersonsFree Movement of Persons

Simina Iancau, Lida Sherafatmand, and Massimiliano ColombiSimina Iancau, Lida Sherafatmand, and Massimiliano Colombi

Free Movement of GoodsFree Movement of Goods

50 years from the Treaty of Rome 50 years from the Treaty of Rome (1957) to the EU (2007) (1957) to the EU (2007) Economic Economic and social progressand social progress

There have been three key There have been three key milestones since the EU has been milestones since the EU has been founded: founded:

- Creation of Customs Union - Creation of Customs Union

- The Single Market - The Single Market

- Economic and Monetary - Economic and Monetary UnionUnion

Definition:Definition:

The principle of free movement The principle of free movement of goods is one of the of goods is one of the cornerstones of the internal cornerstones of the internal market. This principle implies market. This principle implies that national barriers to the free that national barriers to the free movement of goods within the movement of goods within the EU be removed.( see EU be removed.( see www.www.ecec..europaeuropa..eueu) )

Legal Instruments:Legal Instruments: Article 28, 29, and 30 of the EC TreatyArticle 28, 29, and 30 of the EC Treaty which which

prohibit measures which have an effect equivalent prohibit measures which have an effect equivalent to quantitative restrictions in intra Community trade.to quantitative restrictions in intra Community trade.

Decision 3052/95/CEDecision 3052/95/CE of the European Parliament of the European Parliament and Council of Ministers dated the 13 December and Council of Ministers dated the 13 December 1995 established a procedure of information 1995 established a procedure of information exchange between Member States on national exchange between Member States on national measures which derogate from the principle of free measures which derogate from the principle of free circulation of goods within the Community.circulation of goods within the Community.

There is ample case law of the There is ample case law of the Court of JusticeCourt of Justice concerning Articles 28 to 30 of the Treaty. This case concerning Articles 28 to 30 of the Treaty. This case law serves as a basis for a practical guide to the law serves as a basis for a practical guide to the concepts and application of Articles 28 to 30 of the concepts and application of Articles 28 to 30 of the EC Treaty.EC Treaty.

Since the case Since the case ""Cassis de DijonCassis de Dijon""   the principle of the principle of Mutual Recognition, has been used in the process Mutual Recognition, has been used in the process of free movement of goods.of free movement of goods.

Benefits:Benefits:

The free movement of goods has generated nearly The free movement of goods has generated nearly €900 billion in extra prosperity-about €6000 per €900 billion in extra prosperity-about €6000 per household- in its first ten years.household- in its first ten years.

It has contributed to a 30% increase in trade in It has contributed to a 30% increase in trade in manufactured goods in the EU since 1992, thus manufactured goods in the EU since 1992, thus increasing the selection of goods available and increasing the selection of goods available and increasing competition.increasing competition.

It has made the EU more internationally It has made the EU more internationally competitive. For example EU export to countries competitive. For example EU export to countries outside the EU increased from 6.9% of the EU GDP outside the EU increased from 6.9% of the EU GDP in 1992 to 11.2% in 2001.in 1992 to 11.2% in 2001.

It has boosted purchasing power through pressure It has boosted purchasing power through pressure on prices. The gap between the EU’s highest and on prices. The gap between the EU’s highest and lowest prices has been narrowing; some goods are lowest prices has been narrowing; some goods are cheaper in absolute terms.cheaper in absolute terms.

Free Movement of PersonsFree Movement of Persons

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

In the context of EU In the context of EU integration:integration: European citizenship (Maastricht Treaty European citizenship (Maastricht Treaty

1992)1992) Empowerment of the labour market for Empowerment of the labour market for

more growth (Lisbon Strategy 2000)more growth (Lisbon Strategy 2000) Adoption of common values of fundamental Adoption of common values of fundamental

human rights ( European Convention on human rights ( European Convention on Human Rights- 1950)Human Rights- 1950)

Help easier intercultural dialogue (The EC-Help easier intercultural dialogue (The EC-Treaty art. 151 (1): “flowering of Treaty art. 151 (1): “flowering of culture”…”respecting their national… culture”…”respecting their national… diversity”)diversity”)

Basic Legal Instruments and Basic Legal Instruments and components: components: BASIC LEGAL INSTRUMENTS:BASIC LEGAL INSTRUMENTS:

- Article 39 (ex 48) of the EC Treaty- Article 39 (ex 48) of the EC Treaty

- Regulation (EEC) No 1612/68 - Regulation (EEC) No 1612/68

- Community law by Directive 73/148/EEC- Community law by Directive 73/148/EEC

- Council Directive 64/221/EEC- Council Directive 64/221/EEC of 25 February 1964 of 25 February 1964

- Regulation 1408/71 of 14 June 1971 - Regulation 1408/71 of 14 June 1971

- Citizenship Directive 2004/38- Citizenship Directive 2004/38

COMPONENTS:COMPONENTS:

- Issuing of Visas (students, workers, residences)- Issuing of Visas (students, workers, residences)- Family and dependents of workersFamily and dependents of workers- Coordination of Social security systems, Invalidity insuranceCoordination of Social security systems, Invalidity insurance- EURES, (EURES, (- University exchanges for students (e.g Erasmus)University exchanges for students (e.g Erasmus)- Vocational training exchanges (e.g. Leonardo Da Vinci)Vocational training exchanges (e.g. Leonardo Da Vinci)- Protection of human rights ( European Monitoring Centre on Racism and Protection of human rights ( European Monitoring Centre on Racism and

Xenophobia- 1998, Charter of Fundamental Rights- 2000)Xenophobia- 1998, Charter of Fundamental Rights- 2000)

Going ahead and meeting the Going ahead and meeting the challenges:challenges:

- Patent systemPatent system- European Year of Equal Opportunities, anti-discrimination European Year of Equal Opportunities, anti-discrimination

policiespolicies-   Eastern European Countries feeling disadvantaged because of Eastern European Countries feeling disadvantaged because of

‘transitional periods’.‘transitional periods’.- Fear of losing national identitiesFear of losing national identities- ““Inform citizens; ensure strict compliance with existing Inform citizens; ensure strict compliance with existing

Community law; make Community law on the free movement of Community law; make Community law on the free movement of persons easier to understand and to restructure it around the persons easier to understand and to restructure it around the concept of "citizenship of the Union"; consider substantive concept of "citizenship of the Union"; consider substantive changes to existing law.” (conclusions suggested by EU changes to existing law.” (conclusions suggested by EU officials: http://europa.eu/ )officials: http://europa.eu/ )

- Adjusting of the welfare systems for dealing with migrant Adjusting of the welfare systems for dealing with migrant citizens after the transitional periods are overcitizens after the transitional periods are over

The Internal Market TodayThe Internal Market Today

Important benefits for Important benefits for citizens and businesses citizens and businesses

Challenges:Challenges:

The internal market is still not a The internal market is still not a reality in all areasreality in all areas

EnlargementEnlargement Globalisation is changing Globalisation is changing

profoundly how our economy profoundly how our economy worksworks

Rapid technological change is Rapid technological change is affecting traditional patterns of affecting traditional patterns of generating wealthgenerating wealth

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

Priorities for Future Internal Priorities for Future Internal Market PolicyMarket Policy

A stronger focus on fostering market A stronger focus on fostering market dynamism and innovationdynamism and innovation

Better regulationBetter regulation Better implementation and Better implementation and

enforcementenforcement Taking better account of the global Taking better account of the global

contextcontext Investing more in information and Investing more in information and

communicationcommunication