INTRODUCTION:With this report I will analyse theEuropean Union internal market, touching on how it is regulated and explainingthe four fundamental freedoms that were laid down during the Maastricht treaty.In addition, I will touch on the EU tourism policy and how the four freedomshave help the tourism growth in European countries. THE EUROPEAN UNION INTERNAL MARKETWe can define the European Unioninternal market as a single market that allows the free movement of capital,goods, services and labour.
It gives people the freedom to work, live, studyand travel freely with the European Union countries. The goal of the internalmarket is to rouse competition and trade, improve efficiency, increase value,and help cut prices. To achieve these goals costs of businesses were reduced byremoving internal charges and standardising regulation, but due to poor decisionmaking, it proved problematic to make progress.There are four fundamental principlethat upholds the European Union and it internal market. The four freedoms wherefirst laid down during the Maastricht treaty in 1992 and was reformed duringthe Lisbon treaty in 2007. With the four freedoms European citizen can freelymove among themselves. The FREE MOVEMENT OFGOODS is one of the main element of the internal market.
It opensdoors for producers of the Member States and offers a wide variety of goods forconsumers. Once a product has been produced and places on the market in aMember State it can be traded in the whole EU. With the free movement of goods,countries of the European Economic community (EEC), remove customs barriersbetween each other and apply common customs policy towards third countries. Thus,traders do not have to pay duty to export product to other EU countries.Although customs tariffs were abolished, other barriers made it difficult for afree movement of goods. To eliminate these barriers harmonization directiveswere appointed and they have the job of converging national regulations. Toproperly define the phrase free movement of goods we would say that countriesof the EU must not enforce any kind of duties on goods produced in the EU whencrossing borders and neither goods produced in the third country once importedto the EU. Because of the single market, EU Member States negotiate jointly inthe frame of the World Trade Organization (WTO), where the regulations of theinternational trade are laid down.
However, decision makers must take intoconsideration that customs duties do not only reduce competitiveness, but italso reduces other kinds of measures. i.e. if a country enforces limitations onthe importable amount of a certain product, or on the quantity of theingredient, or on the label, they also hinder free movement.
Consequently, anycharge that has an equal outcome on trade or quantitative restrictions onimports are similarly forbidden, any discrimination must be justified bynon-economic considerations, like public morality, policy, security or orderand environmental protection of cultural heritage and intellectual property.The free movement of capital on the other hand was introduced when the European Monetary Union became anobjective. The Council Directive presented a complete freedom for capitalmovements.
However, under the safeguard clause, countries could take certainrestrictive measures when capital movements could disrupt monetary policy. The Maastrichttreaty consolidated the freedom through asserting the prohibition of any kindof constraint on capital transactions and payments between Member States andbetween the member states third countries. Therefore, to define what freemovements of capital, we will say it is a supplementary element of the otherthree freedoms. It contributes to the introduction and consolidation of theEuropean currency and the European Monetary Union.
It allows a betterdistribution of resources within the EU, enables trade across borders, favoursworkers mobility, and makes it easier for businesses to raise the money theyneed to start and grow. With this European citizen have access to benefitsservices such as loans, insurances and securities and can conduct numerousfinancial operations. It is also beneficial for government as the can borrow onlower rates.The free movement of workers is one of the leading principals in theEuropean law. It is a vital element of European citizenship, and therefore enablesEU citizens the right to enter and circulate within the territory of another EUcountry without complications. The EU citizen has the right of equal treatmentto national workers regarding working and employment conditions, social and taxbenefits. It gives opportunities to workers and makes the labour markets moreflexible. At its initial development the free movement of workers was quitesuccessful because the EU countries were less and the participating countriesat that time has similar economies.
However, as the EU expanded it brought bycertain debates, because it expansion led to large number of migrant flows fromlow-income countries to high-income countries. Even though the idea behind thefree movement of workers is purely economic it creates many tensions in thesocial realm. Social issues such as: transfer of pensions, entitlement ofmigrant workers to unemployment’s, social security and other benefits. Theseissues are dealt with under the economic rubric of the free movement of workerswhich generates an unbalanced situation between the economic and social view ofthe free movement of workers.The free movement of services Allows professionals who are legally in aMember State to continue their economic activity in another Member State. Self-employedpeople can also offer and provide services in another Member State. The freedomto provide services refers to all the services that brings by remuneration.
Restrictionson freedom to provide services within the EU is prohibited in respect ofnationals of the member states who are established in a different Member Stateto the end user of the services. To ensure that the free movement of servicesworks the EU must remove all technical barriers impeding it success. However,these barriers do not relate to the service itself. The barriers may range fromdifferent rules regarding authorisations, employment and qualifications. Tourism is among the main resourcesin the European Union community. It aids in the progress, social developmentand services in the European countries.
The goal is to uphold Europe as a topdestination while ensuring that the tourism sector influences the developmentand employment in the EU countries as an exercise of good practice. With thelaws that were laid down during the Lisbon treaty, the EU can fund, manage andboost the of the Member States. For example, since EU citizen does not need avisa while traveling to other European Countries, this practice opens doors totravel around the European Union zone without having to facerestrictions.