Single European Market Flashcards
What is CJEU?
Court of Justice of the European Union (one of the five main institutions)
What is the EEC? Now EC?
+ Purpose
The European Economic Community (EEC) created in 1957 in the Treaty of Rome.
It is now called the European Community (EC)
It’s purpose was to bring economic integration of the six founding nations
- and especially to avoid protectionism (where the nations would put tariffs etc. on their imports in the ECSC)
- and to cooperate and be able to compete with the american market
Treaty of Rome? What and when? 2 new communities + general
1957
- Mandated (give official permission) to a common market
Including:
- Free movement of people, services and capital
- Euratom (European Atomic Energy Communtiy)
General: Less centralization, less pressure for political union /French project)
Why was the journey to an internal market gradual (the political and economic challenges)
1965: Empty chair crisis
- Where french president withdrew from EEC meetings
1970s: Stagnation (Rising inflation, falling production - oilprices) with NON-TARIFF barriers (NTBs)
What is a Non-Tariff barrier (NTB)
Toldbarrier:
can be barriers restricting external goods to enter a market
What is project 1992?
Creation, measures, cultivation
In the mid 80s there was a tourning point in the progression towards an internal market: project 1992, which aimed to complete the internal market by 1992
It included around 300 legislative measures to adress:
- NTBs
- Harmonize taxes
- Promote the free movement of people, goods, services
It cultivated in the Single European Act (SEA) which introduced QMV and tackled the issues the legislative measures were about
Post 1992 - succes + implementation challenges
By the end of 1992 95% of the proposed measures in project 1992, had been implemented
Issues like tax harmonization and company law remained unsolved. Enforcing these laws was uneven across member states ex Ireland was falling behind on the implementation
telecommunication and energy - what was vital in these sectors, and what hindered the liberlization?
Liberalization of telecommunication and energy was slow but vital to the single market, because it was important that the cross-border trade was not hindered by monopolistic practises
Political opposition especially from France and Germany delayed the implemantion
what is the Service Directive?
sought to liberalize services across the EU
especially in traditionally closed sectors like energy and telecommunication
Impact of the Eurozone 2009 crisis on the single market
The eurozone crisis called for economic reforms to restore confidence in the internal EU-trade
Therefore the report ‘new strategy for the single market’ was proposed; which focused on reducing economic nationalism and deepening integration sectors such as tranport and intellectual property (like patents, trademarks, copyright)
Explanation of the single market through liberal intergovernmentalism and Neofunctionalism:
Neofunctionalism: spillover from sectors like the ECSC to encouarge broader market integration
Liberal Intergovernmentalism: Emphasis on the actions of national governments; particularly large states like Germany and France
what is an Acceleration Agreement?
After the 1960s interest for internal market integration increased
French industrial interests played a significant role in pushing for a common market, even though they had originally opposed the idea
The Commission played a central role in nurturing the spillover (from a NF perspective)
Political pressure to be able to compete with the international playes (LI)
CJEU role after SEM was initiated
Court of Justice of the European Union (CJEU) had a vital role, because they had to interpret laws and rule on disputes (disagreements) particularly recarding regulatory barriers
- its judgements often favored market liberalization aligning with EU ambitions of free movenment and competitio
what is the European Round Table of Industrialists (ERT)
European Round Table of Industrialists (ERT) is a forum where 60 european business leaders meet to promote competetiveness in Europe.
It was an influential in the creation of SEM, often lobbying for policies that supported market integration; especially the removal of national regulatory banks
Evaluating of SEM: arguments against (neoliberalism), and arguments against the neoliberalism AND SEM
(+ Brexit)
Neoliberalism: Ex. Majone (an italian scholar that generally do not care for market regulations); argues that SEM has turned the EU into a regulatory state overseeing market efficiency: Making the EU a facilitator of market rules more than of social welfare
Against this neoliberalism standpoint: Critical political economy scholars argue that SEM has contributed to neoliberalism.
- highlighting that corporate interests have shaped the EU policies, and this neoliberal agenda undermines national social protections
Lexiteers (left-wing Brexit supporters) ague that the SEM imposes neoliberalism and that that is not aligned with British interests
Evaluating of SEM: what has it been praised for?
SEM has been praised because it can represent the ultimate achievement for European Integration, fostering economic growth and removing barriers to trade
what is ‘the single market’? + ‘members’
SEM is an area without internal frontiers in which the free movement of goods, people, services and capital is ensured
Include the entire EU + Norway, Iceland, Liechtenstein (and Switzerland kinda)
what are the risks of free movement?
people moving from poor to rich countries
What is still a major disagreement (in the SEM implementation)?
Tax Harmonization and company law (which is legislation for companies to operate without regard to national boundaries)
If the taxes were harmonized Denmark wouldn’t be able to uphold their social welfare system, and with company law a lot of danish firms would probably move to get rid of high taxes
Why are Germany so careful in their fiscal policies?
Perhaps because of traumas from the world wars (hyperinflation)
Besides, they are the backbone in the EU economy because they are so stable
what is the idea of supply-side economics
A macroeconomic theory where the idea is that economic growth is most efficient if: lowering taxes, reducing regulations and making way for free trade
