With this report I will analyse the
European Union internal market, touching on how it is regulated and explaining
the 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 freedoms
have help the tourism growth in European countries.



We can define the European Union
internal market as a single market that allows the free movement of capital,
goods, services and labour. It gives people the freedom to work, live, study
and travel freely with the European Union countries. The goal of the internal
market is to rouse competition and trade, improve efficiency, increase value,
and help cut prices. To achieve these goals costs of businesses were reduced by
removing internal charges and standardising regulation, but due to poor decision
making, it proved problematic to make progress.

There are four fundamental principle
that upholds the European Union and it internal market. The four freedoms where
first laid down during the Maastricht treaty in 1992 and was reformed during
the Lisbon treaty in 2007. With the four freedoms European citizen can freely
move among themselves.

GOODS is one of the main element of the internal market. It opens
doors for producers of the Member States and offers a wide variety of goods for
consumers. Once a product has been produced and places on the market in a
Member State it can be traded in the whole EU. With the free movement of goods,
countries of the European Economic community (EEC), remove customs barriers
between 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 a
free movement of goods. To eliminate these barriers harmonization directives
were appointed and they have the job of converging national regulations. To
properly define the phrase free movement of goods we would say that countries
of the EU must not enforce any kind of duties on goods produced in the EU when
crossing borders and neither goods produced in the third country once imported
to the EU. Because of the single market, EU Member States negotiate jointly in
the frame of the World Trade Organization (WTO), where the regulations of the
international trade are laid down. However, decision makers must take into
consideration that customs duties do not only reduce competitiveness, but it
also reduces other kinds of measures. i.e. if a country enforces limitations on
the importable amount of a certain product, or on the quantity of the
ingredient, or on the label, they also hinder free movement. Consequently, any
charge that has an equal outcome on trade or quantitative restrictions on
imports are similarly forbidden, any discrimination must be justified by
non-economic considerations, like public morality, policy, security or order
and 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 an
objective. The Council Directive presented a complete freedom for capital
movements. However, under the safeguard clause, countries could take certain
restrictive measures when capital movements could disrupt monetary policy. The Maastricht
treaty consolidated the freedom through asserting the prohibition of any kind
of constraint on capital transactions and payments between Member States and
between the member states third countries. Therefore, to define what free
movements of capital, we will say it is a supplementary element of the other
three freedoms. It contributes to the introduction and consolidation of the
European currency and the European Monetary Union. It allows a better
distribution of resources within the EU, enables trade across borders, favours
workers mobility, and makes it easier for businesses to raise the money they
need to start and grow. With this European citizen have access to benefits
services such as loans, insurances and securities and can conduct numerous
financial operations. It is also beneficial for government as the can borrow on
lower rates.

The free movement of workers is one of the leading principals in the
European law. It is a vital element of European citizenship, and therefore enables
EU citizens the right to enter and circulate within the territory of another EU
country without complications. The EU citizen has the right of equal treatment
to national workers regarding working and employment conditions, social and tax
benefits. It gives opportunities to workers and makes the labour markets more
flexible. At its initial development the free movement of workers was quite
successful because the EU countries were less and the participating countries
at that time has similar economies. However, as the EU expanded it brought by
certain debates, because it expansion led to large number of migrant flows from
low-income countries to high-income countries. Even though the idea behind the
free movement of workers is purely economic it creates many tensions in the
social realm. Social issues such as: transfer of pensions, entitlement of
migrant workers to unemployment’s, social security and other benefits. These
issues are dealt with under the economic rubric of the free movement of workers
which generates an unbalanced situation between the economic and social view of
the free movement of workers.

The free movement of services Allows professionals who are legally in a
Member State to continue their economic activity in another Member State. Self-employed
people can also offer and provide services in another Member State. The freedom
to provide services refers to all the services that brings by remuneration. Restrictions
on freedom to provide services within the EU is prohibited in respect of
nationals of the member states who are established in a different Member State
to the end user of the services. To ensure that the free movement of services
works the EU must remove all technical barriers impeding it success. However,
these barriers do not relate to the service itself. The barriers may range from
different rules regarding authorisations, employment and qualifications.


Tourism is among the main resources
in the European Union community. It aids in the progress, social development
and services in the European countries. The goal is to uphold Europe as a top
destination while ensuring that the tourism sector influences the development
and employment in the EU countries as an exercise of good practice. With the
laws that were laid down during the Lisbon treaty, the EU can fund, manage and
boost the of the Member States. For example, since EU citizen does not need a
visa while traveling to other European Countries, this practice opens doors to
travel around the European Union zone without having to face

Written by

I'm Colleen!

Would you like to get a custom essay? How about receiving a customized one?

Check it out