European single market

The European single market is a big area where 27 countries in the European Union work together to make it easier to trade and move around. It includes places like Iceland, Liechtenstein, Norway, and Switzerland too, through special agreements. The main idea is to let people, goods, money, and services move freely between these countries. This is called the four freedoms of the European Union.

Countries that want to join the European Union must first make agreements with the EU. Some nations, like Georgia, Moldova, and Ukraine, have special deals that let them join parts of the single market. The United Kingdom left the single market on 31 December 2020, but Northern Ireland still follows some of the same rules to keep the border open with Ireland.

The single market helps countries grow by letting them focus on what they do best and share things more efficiently. It also brings economies closer together, making them stronger as one big EU-wide economy.

History

One of the main goals of the European Economic Community when it started in 1957 was to create a common market. In this market, goods, services, people, and money could move freely. At first, this was hard because countries had different rules and often protected their own businesses.

In the 1980s, leaders wanted to improve the economy. They made a plan to fix problems that stopped the market from working well. This led to new rules and a goal to finish the single market by the end of 1992. The market officially started on January 1, 1993.

Since then, more rules have been added to help businesses and people move around more easily. In 1997, border checks between many countries were removed. In 2010, a report suggested new ways to make the market stronger. Recent reports continue to find ways to update the market for new technologies and growth.

Four freedoms

The European single market has four main rules, called "freedoms," that help it work well. These are:

• Free movement of goods
• Free movement of capital
• Freedom to establish and provide services
• Free movement of labour

Goods

The rule about goods means that products can move freely between countries in the market. Almost anything with value can be a good, like art, coins, and water. Fish are goods, but fishing rights are considered a service.

Rules help make sure goods can move without extra taxes or barriers between countries. There are special rules to stop unfair charges and make sure products follow safety and quality standards.

Capital

The free movement of capital means money and investments can move freely between countries. This includes buying and selling shares, investing in businesses, and moving money between banks. There are rules to stop unfair taxes and make sure investments are treated fairly.

Services

Services include things like professional work, education, and healthcare. People and businesses can offer services in any country without many restrictions. There are rules to make sure services are safe and fair, and countries can make some rules to protect their people.

People

People in the European Union can move freely between countries to live, work, or study. There are rules to make sure everyone is treated fairly, and people can vote in elections even if they live in a different country. There are also rules about how long people can stay in a country and what services they can use.

The main goal is to make it easy for people to move and work anywhere in the European Union.

Public sector procurement of goods and services

Main article: Government procurement in the European Union

When governments in the European Union buy things like goods and services, they follow special rules. These rules help make sure everyone is treated fairly. The rules let people and businesses move freely across Europe. They make sure that no one is treated unfairly and that everything is done in a clear way. This helps keep things open and honest when governments make purchases.

Integration of non-EU states

See also: Potential enlargement of the European Union

Only countries that are members of the European Union are fully part of the European single market. But some other countries can join in parts. For example, Iceland, Liechtenstein, and Norway are part of the market through an agreement called the European Economic Area. Switzerland also joins in some ways through special agreements.

Some areas, like farming rules or money rules, these countries do not fully follow. Also, Turkey has its own special deal for moving goods freely, but not for other things like people or services. Countries like Georgia, Moldova, and Ukraine can also enjoy many benefits of the market through different agreements.

Northern Ireland, which is part of the United Kingdom, has special rules to keep things smooth with nearby Ireland, even though the UK left the European Union. This means some rules about goods and taxes still apply there.

Akrotiri and Dhekelia, special areas owned by the United Kingdom but located on Cyprus, are also part of the EU's rules for moving goods freely.

Further developments

Since 2015, the European Commission has worked to create single markets for energy and for the defence industry.

On 2 May 2017, the European Commission shared new plans to make the single market work better. These plans included a digital gateway to help people find information and services across Europe, a tool for businesses to share important information, and ideas to improve a network that helps solve problems within the single market.

New Hanseatic League

Further information: New Hanseatic League

The New Hanseatic League is a group of northern European countries formed in February 2018. They want to make the European single market stronger, especially for services sector work.