Unit 3 - Single Market

Question 1

What is the single market?

Answer 1

It is the internal market in EU where the four freedoms are realised through a (trade) agreement. This arrangement make it easier for goods, services, people and capital to move freely between the member states.

Question 2

Which countries are the single market encompassed of?

Answer 2

The 28 EU member states + the four EFTA states: norway, lichtenstein, iceland and switzerland. The first 3 are linked to the single market through the EEA agreement whereas Switzerland has a bilateral agreement with EU.

Question 3

Schengen area:

Answer 3

An area with 26 European countries where the borders for people are abolished and therefore people can move freely without any ID controls at the borders.

Question 4

Which 6 countries are not within the Schengen?

Answer 4

UK, Ireland, Croatia, Romania, Bulgaria and Cyprus (but instead the four EFTA states are within Schengen).
So 28-6+4=26 schengen countries.

Question 5

Can everyone move freely in the schengen area?

Answer 5

Yes, as soon as you are in the area, you can move freely even if you are a non-EU-citizen. BUT you need a schengen visa (a single visa for all countries!) the for the first country you are entering. There are no borders within the area but kind of tight controls at the common external border.

Question 6

If you buy stuff in Germany and then travels to UK, what will happen?

Answer 6

Since they are within the single market, they will not check the goods you are bringing with you, BUT they will check your identity as they are outside the schengen area.

Question 7

Are all citizens in the EU countries automatically an EU citizen?

Answer 7

Yes, and can therefore move freely within EU without being discriminated on the grounds of your nationality.

Question 8

What is the objectives of the free movement of workers?

Answer 8

(Article 45 in TFEU) - that no one can be discriminated for its nationality when living, working or trying to find a job in another EU member state.

Question 9

First 3 months in another EU- single market state?

Answer 9

No conditions or formalities are needed, bring your ID card to be sure, that’s the only thing you need. But for residence you might be required to register your presence at the authorities.

Question 10

Staying longer than 3 months?

Answer 10

Here, it depends on your situation: if you are not working you must have sufficient resources to not become a burden for the host state and their public services, plus you must have a sickness insurance. If you are working, you don’t need to worry, no permit is needed.
But also here you might be required to register your presence.

Question 11

Which rights and responsibilities do you have if you work in another country?

Answer 11

You are under the rules and regulations of the state you are working in, so they have the same social and tax benefits and right to get help from the national employment office as the domestic ones.

Question 12

After working continuously in another country (legally ofc) for 5 years…

Answer 12

…you will acquire the right of a permanent residence and can stay for as long as you want, BUT you can lose this right if you live in another country for 2 years.

Question 13

If you seek a job but haven’t found any yet?

Answer 13

You can seek a job for up to 6 months but if you are still unemployed after these months you must have evidences to prove that you are actively seeking and you must also have a ‘genuine chance’ of getting employed. Otherwise you can be asked to leave the country.

Question 14

When can you be refused to enter a country? (a limit of the free movement)

Answer 14

If you are posing a serious threat to the state. So on the grounds of public security, public policy or public health you might be refused to enter or if you are already in, you can be deported out.

Question 15

3 rights for an EU citizen (movement of people):

Answer 15

1. You can work in another EU state without needing a work permit.
2. Right to equal treatment (employment, taxes, housing etc.)
3. Reside in another EU state for the purpose of working.

Question 16

Where should you claim unemployment benefits if you lose your job?

Answer 16

In the country where you were employed at the end, so even if there are better benefits in your home country you have to go through your host state’s system. (But they must take into account all the jobs you have had and all you have contributed with in the EU, no matter which country it was done in).

Question 17

Are you allowed to stay in another country if you lose your job?

Answer 17

It depends on how long you have been working there and the type of contract that you had before you lost your job.

Question 18

What about family members who are not nationals of EU?

Answer 18

They must apply for a residence permit that is valid for their duration of stay or 5-year period permit.

Question 19

What is special for UK and Ireland regarding Schengen?

Answer 19

They are not within the schengen area but have an ‘opt in’ to selected parts of the schengen body of law. So for ex UK participates in the cooperation of the judical/criminal parts with SIS.

Question 20

And what about Denmark then?

Answer 20

They are within the S but have an ‘opt out’ instead and do not need to take part of new measures regarding justice and home affairs if they don’t want to. But they are of course bounded by the common visa policy.

Question 21

Bulgaria, Romania and Cyprus?

Answer 21

They are not within S yet but are in the process of becoming a part of it but have delays for different reasons.

Question 22

How are the borders managed for the EU and Schengen countries?

Answer 22

The EU Coast Guard agency Frontex helps managing the external borders and harmonising the border controls across the EU. It cooperates with border authorities in each country and provide technical support and expertise.

Question 23

What must the ROW do to enter the EU?

Answer 23

It depends on where in EU they are travelling: if they are going to a S-area country they must have a schengen visa which is a single visa allowing you to enter all of the schengen countries (no borders).
But if you are going to one of the six states outside S-area you must apply for specific visa for those countries.

Question 24

SIS

Answer 24

Schengen Information System = an efficient large-scale information system supporting the external border controls and polices and law enforcement cooperation in the S-area states (sharing info about criminals and missing people etc).
This was set up because when the internal borders were abolished they needed to compensate with higher security and improved cooperation.

Question 25

The two core principles in the single market for services?

Answer 25

1. The freedom to establish a company in another EU country.
2. The freedom to provide or receive a service in another EU country.

Question 26

Services directive

Answer 26

The act by EU to apply the core principles into law. It cover most of the service types, but not all of them, ex not health care services. The goal of the implementation was to remove barriers to trade with services both between countries but it also applies to the national markets.

Question 27

3 specific concepts in the service directive:

Answer 27

• Points of single contact: one-stop-shops for service providers to get info and do admin formalities online in all EU countries.
• Rights of recipients of services: the directive strengthen the rights those receiving the service in EU.
• Administrative cooperation: EU countries must cooperate and give mutual assistance in the supervision of service providers.

Question 28

How do businesses benefit from the service directive? (3)

Answer 28

1. Easier establishment
2. Easier provision of cross-border services
3. Simplified procedure and formalities.

Question 29

How do consumers benefit from the service directive? (3)

Answer 29

1. Strengthen rights when receiving it
2. Higher quality of services
3. Enhanced info and transparency on the providers

Question 30

Professional qualifications directive

Answer 30

The obstacle of different professional qualifications in diff countries is somewhat solved by EU through this directive which facilitate mutual recognition of some qualifications. ex a doctor in Spain should be able to work as a doctor in Sweden as well.

Question 31

The four types of cross border services:

Answer 31

1. Cross-border supply: A Swe service (ex consultancy or distance training) is supplied into another EU state.
2. Consumption abroad: A service is supplied in Swe to a foreign consumer who travels to receive it (ex tourist in Stockholm).
3. Commercial presence: A Swe company provide a service through commercial presence in another country. (Ex a subsidiary/swe-owned company with a local business in France, ex hotel, bank etc).
4. Movement of natural persons: Service supplied by a Swe company through the presence of Swe workers in another country (ex a temporary worker as consultant, health worker etc).

Question 32

Conformity assessment on goods:

Answer 32

All the goods that are put into the EU market must meet the standards and requirements for quality and safety in this conformity assessment procedure.

• Testing, inspection, certification
• The procedure for each product is specified in the applicable product legislation.

Question 33

CE Marking:

Answer 33

Many products require CE marking before they can be sold in EU (to be exact - EEA). This marking signifies that the products have gone through an assessment process and therefore meet high health, safety and environmental standards/requirements.

Question 34

Which EU institutions is ensuring the safety in the internal market?

Answer 34

It is the European Commission’s main goal to ensure the free movement of goods and that these goods are approved.

Question 35

If there are several applicable conformity assessments?

Answer 35

Then the manufacturer can choose which of them they want to use on their products.

Question 36

Who does the assessment?

Answer 36

Sometime a conformity assessment body must do it but mostly the manufacturer can do the test themselves –> there are random controls and surveilliance so donät cheat.

Question 37

Customs controls:

Answer 37

At the EU-borders we have customs controls for the goods taken into the EU to check if they comply with our requirements. Don’t check the products themselves, instead checking for a certification assuring the compliance.

Question 38

How can a Japanesee company sell products in EU?

Answer 38

Must read the EU legislation for the specific products they want to sell and make sure that they meet the requirements, then ask for a certification from an accredited certification body in Japan that can assure the compliance with the requirements.

Question 39

Where does the customs controls take place?

Answer 39

Where the goods arrive, so mainly in the ports or at the airport or at the border when crossing it.

Question 40

Who makes the controls?

Answer 40

Officers at the borders.

Question 41

Why are these controls needed?

Answer 41

Because the regulatory frameworks are different in EU compared to other countries.

Question 42

Are there never controls within the EU market?

Answer 42

It is, because the production within the EU must of course also meet the requirements so there are random controls across the EU all the time to check that the products sold in the EU member states meet the requirements. Ex livsmedelsverket visiting ICA to check the food safety.

Question 43

Are there different standards in different EU countries?

Answer 43

Yes, because for non-sensitive product, the EU sets a minimum level in a directive where the states themselves then can set a higher standard level. So for trade between EU countries you must meet the standard requirements for the country you want to sell in.

Question 44

If EU require higher standards for a product, do you need to change your product/process?

Answer 44

No, if Sweden decides that it wont require higher standards from their domestic companies, the companies themselves can decide if they want to sell only in sweden. But if they want to be able to sell in the EU market they must change their product.

Question 45

What is the EU Budget?

Answer 45

It is the pooled money from all the member states that together help EU becoming a strong and efficient community where less developed countries are helped by the wealthier.

Question 46

Difference between EU budget and the national budgets?

Answer 46

That the EU budget is an investment budget that brings added value thanks to the economies of scale, ex in the infrastructure, and also makes risky investments in tech and research that a state alone never could have done.
In contrast, the national budgets is spend on social protection, education and healthcare.

Question 47

Is the EU budget an annual budget?

Answer 47

Partly, it is mainly a long-term budget for the upcoming 7 years where they set the maximum amounts of spending in each category per year. This is called the multiannual financial framework (MFF). Then each annual budget is adopted within the limits of MFFs ceilings.

Question 48

The five headings (spending areas) of the EU budget?

Answer 48

1. Smart and inclusive growth (49%) - competitiveness for job and growth + Economic, social and territorial cohesion.
2. Sustainable growth (36%)
3. Security and citizenship (2%)
4. Global Europe (7%)
5. Administration (6%)

Question 49

How is the EU budget financed?

Answer 49

The money comes mainly from the member states:

• custom duties on imports from outside EU (13%)
• value added tax from each member state (11%)
• a proportion of each country’s GNI. (65%)
• other revenues (11%)

Question 50

How often is the EU budget voted on?

Answer 50

Every year the European Parliament and the Council vote on the EU Commission’s proposal on an annual budget within the MFF framework.

Question 51

How is the EU budget implemented?

Answer 51

We have three level of management when it comes to the distribution of the money:

1. Direct management - the 18% that the Commission has full control over.
2. Shared management - the 74% that the member states can spend but with the supervision of th Commission. Often assigned to the agricultural sectors.
3. Indirect management - the 8% that the international org and dec. agencies within the EU are managing.

Question 52

Why is the EU budget so small relative to the states’ budgets?

Answer 52

Because the main activities that EU provide us with don’t require money. The welfare policies and activities are managed within the states by themselves and this is what costs the most. So, the EU don’t need that much money to do their thing.

Question 53

What is the NANDO list?

Answer 53

It is the list of the notifed (accredited) bodies within each member state that has been given the power to do the conformity assessments. So if your production needs an external body to certify it, you must make sure that the organisation doing it is on the list (otherwise it is not valid).

Question 54

When will EU determine a regulation vs directive on product standards?

Answer 54

They will conduct regulation when they consider that the product is sensitive and must be harmonised throughout the whole EU, no room for discrepancies. In contrast, they will make a directive when they consider that a minimum level is enough, so that each state then can make a decision on whether they will require higher standards or not.

Question 55

Why don’t EU harmonise all types of products?

Answer 55

Because, all EU member states have their own history and political and cultural views of products and markets and therefore rigid regulations are not always a good idea. As long as EU sets a minimum level, this can in many cases be enough. They don’t need to be so strict.

Question 56

Is it enough to have the CE marking for selling i the whole EU?

Answer 56

No, CE-marking says that it complies with the EU standards, but each member state can have higher standard requirements and therefore the product must always meet the requirements and legislation of that country.

Question 57

Describe the free movement of capital:

Answer 57

Aims to integrate, open and make the European financial market more efficient. For EU citizens this means that you can open a bank account, buy shares, invest where the interest is highest and purchase real estates in all countries. And companies can invest and raise funds from all countries. Do not mix it with the Capital markets union which is an org boosting the capital transfers.

Question 58

Why is the EU capital movement risky?

Answer 58

Because we are so deeply integrated with each other so if one big actor falls, we all will fall too.