Preface :: Economics

Preface Since the early customs union, the European Union has been keen to create a single market for its member states. In this assignment, I am going to discuss to what extent the European Union has created a single integrated economy for its member states. 2. Introduction From the early Customs Union to the Single European Market to the recent Single European Currency—the Euro, the European Union achieved a lot of successes in the process of creating a single integrated economy for its member states in the last fifty years. Nonetheless, with so many successes, the European Union still have a long way to go to create a true single economy for its member states. For example, there are still significant differences of corporate governance regimes and social/labour models between member states. And the enlargement towards Central and Eastern Europe is another incomplete big task for the European Union. In the following, I am going to discuss, with more details, to what extent the European Union has created a single integrated economy for its member states. 3. Major Achievements 3.1 Customs Union and The Early Enlargement In 1948, the Benelux--a customs union in industrial goods was formed by the Netherlands, Belgium and Luxembourg. After the Treaty of Paris and the Treaty of Rome were signed, the customs union comprised Benelux, France, Germany and Italy and was extended to all industrial goods (not just for coal and steel). In 1969, the customs union completed the elimination of customs duties and quantitative restrictions on the import and export goods between the original six. (McDonald D, 1999) This was the most basic economic arrangement of the EU. Between the elimination of tariffs and quotas and the agreement of establishing the Single European Market, there was very little progress towards the single market. (McDonald D, 1999) But enlargements were very successful with member states growing from 6 to 15 which included Denmark, Ireland and the United Kingdom joined in 1973, Greece in 1981, Spain and Portugal in 1986 and Austria, Finland and Sweden in 1995. (Europa, 2003a) 3.2 The Single European Market In 1985, the European Commission chaired by Jacques Delors published a White Paper proposing the member states for completing the internal market. This white paper made it clear that there were three types of barriers (physical, technical and fiscal) standing in the way of the completion of the internal market. (Mercado S. et al, 2001) In the next year, 12 member states signed the Single European Act which contained a blueprint and a timetable for adopting over 270 liberalising measures which would be necessary for the creation of a single market. (Europa, 2003a) Between the passing of the Single European Act and the deadline of 31st