INTERNAL MARKET

The internal market as an objective of the EU Article 3 TEU: The EU’s aim is to promote peace, its values and the well-being of its people. Article 3, para 2: The Union shall establish an internal market. Article 3, para 1 TFEU: The EU shall have exclusive competence in the following areas: a) customs union, b) the establishing of the competition rules necessary for the functioning of the internal market. Article 4,para 2 TFEU: Shared competence between the Union and the Member States applies in the following principal areas: a) internal market…

THE CONCEPT OF THE INTERNAL MARKET Article 26 TFUE: The internal market shall comprise an area without internal frontiers in which the free movement of goods, persons, services and capital is ensured in accordance with the provisions of the Treaties. The Council, on a proposal from the Commission, shall determine the guidelines and conditions necessary to ensure balanced progress in all the sectors concerned. Article 27 TFEU: The Commission has to take into account the extent of the effort that certain economies showing differences in development will have to sustain for the establishment of the internal market.

Overview of the four freedoms Free movements of goods: the “cornerstone” of the internal market/ For many MS a primary reason for membership/it applies to all goods, including goods imported from outside the EU/Common commercial policy based on a customs union/ prohibition of customs duties and of quantitative restrictions/States are required to adjust any state monopolies of a commercial character.

Free movement of person: a right to leave, or enter and reside in a MS for the purposes of work or establishment and the right to be treated without discrimination/ Derogations on the ground of public policy, public security, and public health/ Employment in the public service. Freedom to provide services: movement or not movement of a person to provides services (insurance). Free movement of capital: distinction between payments and capitals and between MS and third countries/ Public- policy exceptions.

Common themes in the free movement provisions Economic activity: in the earlier years, the non- discrimination principle was linked to an economic activity/ With the introduction of the EU citizenship, the need for an economic link began to dilute. Internal situation and migration: The principle: the EU law has no application to purely internal matters/ Exceptions: in relation to citizenship/ Reverse discrimination.

Discrimination and access to the market: The prohibition of discrimination on the grounds of nationality applies to all forms of discrimination, both overt and covert (residence or length-of- residence requirement)/ Moreover, the ECJ looks to the effect of a national measure (creation of an obstacle), even not overtly or intentionally protectionist/ unless are “objectively justified” as necessary to safeguard vital interests.

Direct effect: Although the free-movement provisions are addressed to MS, all the main articles have been found to be directly effective and thus may be invoked by individuals. Whether, all the treaty freedoms are horizontally effective is less clear. Need for harmonization: The Treaty derogations and the exceptions accepted by the ECJ can jeopardize the functioning of the single market. White Paper, 1985, a massive harmonization program, designed to provide common standards of protection ( TFUE). The so-called open method of coordination (OMC) aims at lessening the regulatory burden of businesses.

The social dimension In addition to the right of free movement, the Treaty seeks to increase the social protection. Worker’s protection is ensured by the principle of non-discrimination. EU employment legislation is to harmonize national laws. Harmonized standards create a level playing field. Otherwise, MS with lower standards will have a competitive advantage. EU social rights aim at promoting the well-being of EU citizens. EU measures complement rather than replace national provision, according to the principle of subsidiarity.

Completion of the internal market Single market Act I ( ). The Commission announced twelve key actions (a single market for venture capital, a better system of recognition of professional qualifications, a unitary patent system, faster solutions to disputes, a cross-border use of electronic identification etc. Single market II ( ). The Commission identifies four drivers around which to focus key actions: 1. Developing fully integrated networks (energy and transport), 2. Fostering mobility of citizens and business across borders, 3. Supporting digital economy across Europe, 4. Strengthening social entrepreneurship, cohesion and consumer confidence.