In accordance with Article 14 of the EC Treaty, the internal market is an area without internal frontiers in which the free movement of goods, persons, services and capital is ensured. This is further strengthened by a series of complementary policies (anti-cartel enforcement, merger control, controls on state aids, public procurement).
The removal of economic and commercial barriers between the EU Member States has been an aim of the European integration process since the start. The process was formally concluded with the creation of the EU internal market on 31 December 1992 as envisaged by the Single European Act of 1987. Structuring the internal market is nevertheless an ongoing process which must constantly adapt to new economic and political configurations.
The EEC Treaty creates a supranational community of States with the aim of establishing a common market. The purpose of the common market/internal market is to achieve the goals enshrined in the EEC/EC Treaty (in particular the four freedoms: free movement of goods, persons, services and capital).
The Single European Act sets a specific target date for completion of the internal market: 31 December 1992. The political basis for this Treaty amendment is the European Commission’s White Paper of 14 June 1985. The White Paper proposes creating a number of instruments to realize the internal market, in particular the extension of decision-making by majority vote in the Council. In addition, the principle of mutual recognition is introduced on an equal footing with the harmonization of legal provisions.
Jacques Delors, the President of the European Commission, launches a new initiative in a speech to the European Parliament, designed to include the EFTA countries wishing to join the European Economic Community (EEC) in the internal market project. A European Economic Area (EEA) is to be created to enable the EFTA countries to participate in the internal market.
The Agreement on the European Economic Area is signed.
The internal market, which is the basis for economic and monetary union, is largely completed by 1 January 1993. Work on fully achieving the aims of the internal market, i.e. the establishment of the four freedoms and the elimination of barriers to trade, continues.
The EEA enters into force. The four fundamental freedoms are implemented and extended to the EFTA countries Austria, Sweden, Finland, Norway and Iceland. Following a no vote in a referendum, Switzerland abandons its plan to join the EEA.
1. Free movement of goods
Establishment of a customs union, elimination of all quantative barriers
2. Free movement of persons
Free movement of labour, freedom of establishment
3. Free movement of services
Freedom to exercise professions in other Member States
4. Free movement of capital
Movements of capital between Member States may not be subject to restrictions.
The EFTA countries Austria, Sweden and Finland join the EU. The remaining EFTA countries are: Iceland, Norway, Liechtenstein and Switzerland. Liechtenstein becomes a party to the EEA Agreement on 1 May 1995.
The aim of the Lisbon Strategy launched in March 2000 is to make the EU the world’s most dynamic and competitive knowledge-based economy by 2010. The Strategy consists of three pillars, namely sustainable economic growth with more and better jobs, greater social cohesion and respect for the environment. Following a mid-term review at the European Council of March 2005, the Strategy is relaunched with a new focus on growth and employment, as favoured by the Federal Government. Three areas of action are identified:
For the internal market to be fully realized, particular action is needed in the areas of services, network-based sectors (energy, transport, telecommunications and postal services) and the awarding of public contracts, as well as in intellectual and industrial property and tax issues.
