Transcript Completing Unfinished Business: Development and Operation of

Completing Unfinished Business:
Development and Operation of
Single European Market
Darko Pantelić, M.A.
University of Novi Sad, Serbia
Theory about
Economic Integration
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Preferential Trade Agreements
Free Trade Area
Custom Union
The Common Market
Economic Union
Monetary Union
Beyond?
From The Treaty of Rome…
 European integration is based on four founding
treaties:
- European Coal and Steel Community (1951)
- Treaty of Rome establishing European Economic
Community (1957)
- European Atomic Energy Community (1957)
- The Treaty of European Union known as Maastricht
Treaty (1992)
… to The Treaty of Nice
 Moreover, founding treaties are amended on
several occasions:
- The Merger Treaty in Brussels (1965)
- The Single European Act in Luxemburg and Hague
(1987)
- The Treaty of Amsterdam (1997)
- The Treaty of Nice (2001)
Close up to
Single Market Idea
 EEC Treaty: “promoting the harmonious development
of economic activities, continuous and balanced
expansion, increased stability, a rapid rise in living
standards and closer relations between its Member
States”
 Opening boarders between member countries
 Free movement of individuals, goods and services
and capital
 Common policies and common financial services
Economic History of EU
 First success – July 1968 internal custom duties and
quotas vanished
 Hard – hitting 1970’s – “Euro-sclerosis”
 1985 introduced White paper – cost of non-Europe
had to be neutralized
Ten Years from…
 White Paper’s dead-line – 1993
- blueprint and timetable to creation of Single
Market
- multi area phenomenon
- more freedom to…
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Treaty of Maastricht – single currency perspective
Ten Years:
Economic Benefits
 Direct benefit to EU GDP from single market in 2002 is
1,8% OR 165 billion euros
 About 2,5 million of jobs created
 Extra prosperity 870 billion euros in past ten years
accumulated
 Raising competitiveness in global markets (EU export
towards third countries raised from 6,9% to 11,2% of
GDP)
 Attracting foreign investors
Ten Years:
Citizen/Consumer Benefits
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Wider choice of goods and services
Prices
Lower telecommunications tariffs
Lower airfares
15 million of Europeans moved across boarder
Consumer protection is improved
System of EU procurement rules led to savings
Ten Years:
Benefits for Business
 Trade within EU has become much easier
 Mutual recognition principle
 Complex and different national laws are replaced
with a single framework
 Boost of cross border sales
 Small and medium size enterprises have clear path
to new markets
 Opening of public procurement system
 SME benefited from lower electricity cost
What areas are considered
successful
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Movement of goods
Movement of capital
Financial services
Transport
Regulations and technical standards
Intellectual and industrial property protection
Public procurement
Unfinished business
 Company law
 Taxation
 Pension problems
 Electricity and telecommunications
 Enlargement
Supporting Single Market
Idea and Practice
 Legislation
 Transposition
 Enforcement
 Facilitation and promotion
Looking ahead
 It is not a single dimension judgment
 Perfect doesn’t exist
 Intergovernmental vs. Supranational
 Single currency achievement
 Enlargement
Enlargement
- in eyes of new members
 “The EU as it is” (acquis communataire) and new
members of European family
 Expectations
- easier access to European markets
- tougher competition on the domestic market
- more transparent business practice on home market
Enlargement
- in eyes of new members
- bigger inflow of foreign direct investments
- more competitive conditions for acquiring new
capital equipment and IT
- long term strengthening of competitiveness
- difficulties in financial area
- difficulties in commercial area
- difficulties in technical area
- difficulties in human resources area
Instead of conclusion Reaching Lisbon target