The four freedoms of the European Union


Elaboration, 2014
9 Pages, Grade: 2,0

Excerpt

Table of Content

1. Introduction

2. The Free Movement of Goods

3. The Free Movement of People

4. The Freedom of Services

5. The Freedom of Movement of Capital

6. The Advantages and Disadvantages of the EU’s Single Market

7. Conclusion

8. References

1. Introduction

In 1992 the European Union established a huge European Single Market, which includes its 28 Member States as well as Liechtenstein, Iceland, Norway and Switzerland.[1] It contains four freedoms that guarantee free movements of goods, services, capital and people. With a possession of 4.325 Mio. km² and 493 Mio. citizens it is one of the biggest internal markets on earth. Due to the omitted border formalities people are free to choose their place of residence, university and work place. But also the increasing quantity of goods followed by much more competition on the market in the EU leads to a price advantage for the consumers and therefore to a competitive position on the international market.[2]

Besides the European Union framed some rules and additives to regulate the domestic market, like the implementation of a single currency in year 2001.

In addition particular minimum standards, common standards for the environment, energy political measures, arrangements for consumer protection, a common transport policy, research funding as well as a solidary contribution for less developed Member States exist or are in process in the new regions which now belong to the EU.[3]

But there is still plenty of room for improvement with regard to the implementation of these regulations.

Actually critics suppose that the transformation of normal markets in different countries into an internal market for all countries is a dubious method with incidental negative ancillary effects with unpredictable extents for the future.

On account of this the Research Paper primarily implies an explanation of the four freedoms of the European Union’s Single Market considerably. Secondly the main advantages as well as the disadvantages of the internal European trade are carved out and analysed.

2. The Free Movement of Goods

The free movement of goods is one of the four freedoms of the European Union’s Single Market which arises from the contract about the foundation of the European Community.

It consists of the tariff union and the prohibition of a quantitative constriction for imports and exports of goods plus other measures which ensue similar effects.[4]

A tariff union is the association of several independent countries, forming a customs territory, with the agreement of duty-free trade among themselves and a duty-unification with third countries.[5]

As said in the Treaties of the European Union, this arrangement shall enable a cross-border transport with the interconnected EU’s Member States that simultaneously conduces an emancipated intra-community trade. The regulation of such a free movement includes all goods that are a movable commodity of a trade transaction for which they must have a commercial value. Goods from third party countries are also included, meaning that the commodities do not necessarily need to originate from a member country of the European Union if they are in the free movement process within those regions.

Besides the European Court of Justice developed the so called Dassonville-formula which indicates state-run measures that are adequate to restrain the commercial intercourse between the member states in a potential, direct or indirect way, thus basically every barrier to trade.

The regulation of the free movement of goods only corresponds to products on offer which hail from the Member States Community or on the ones that are attendant in the free trade among these regions.

But as the Keck-formula says, the national designations like for example the closing-time of stores, advertisements or an age limit for particular commodities is explicitly excluded in the formulated treaties of the European Union.

However the contract implies that the free movement regulation is allowed to be restricted if it is necessary for the protection of human life, when the health of citizens, animals and plants is endangered or by reason of consumerism and environmentalism.[6]

3. The Free Movement of People

The second freedom of the European Union’s Internal Market is the Free Movement of People. It comprises and refers to the free mobility of employees, free settlement and methodically the freedom of services among the Member States.[7]

The Free Movement of People provides an equal treatment with regard to all citizens. In fact the nationality is independent if a person is employed. In the Treaties of the European Union it is clearly conveyed that it is prohibited to discriminate against someone due to his native place. Additionally a rule has been established which forbids a national discrimination in terms of rights which have been acquired abroad.[8] But indirect constrictions like labour legislation laws are not affected by this rule whether they are determined by objective attributes and if they are irrespective of the citizenship for all people in the Member Countries.[9]

First and foremost the Treaties protect the right for entrance into gainful employment in the public and private realm where the worker has to be treated equally. Furthermore an EU citizen is permitted to enter into all Member States and to stay there.

This is the basis for the free mobility of employees who nowadays are able to move and to apply for jobs everywhere in the European Union. Besides they are allowed to stay and live in the country after they resign their work. Even the appropriate members of the family of the employed are included and have a right of residence. Companies and Unions are implied, too.[10]

Actually the legislation not only involves employable citizens but also students and apprentices. Moreover private citizens are obliged to close equal contracts for tariffs and individual employment agreements with respect to the wage in such a way that no EU citizen is discriminated.[11]

As all four freedoms of the EU are not absolutely without restrictions, the Free Movement of People can be regulated differently because of health, security and protection.[12]

4. The Freedom of Services

Another Freedom within the European Union is the so called Freedom of Services and it only can be applicable to the EU citizens.[13]

A service is an accomplishment which can be performed in all Member States across national boundaries and generally they are provided in return for payment. The rules about the Freedom of Services in the Treaties of the European Union cover the regulations of all services which are not already considered in other articles about the fundamental freedoms. Such services are in the industrial, commercial, technical self-employed realm.

Besides, this kind of freedom is rather related to the transport – import and export – of products than to labour. The service and the residence in a foreign Member Country has a temporary limit in this case. But everyone who renders a service has the right to be treated equally without discrimination against the nationality, just as the Free Movement of People declares.[14]

The European Union protects all services, meaning the supply as well as the receipt of services both at home and abroad.

In pursuance of the Treaties it is prohibited to restrain any service except when such a constriction is justified and in the benefit of the public interest, on grounds of security for the EU citizens.[15]

5. The Freedom of Movement of Capital

The fourth and last of the Fundamental Freedoms is the Freedom of Movement of Capital in the EU which has been established by the economic and monetary union. It shall unitise the European capital market, containing different data transfers like investments, bonds, current accounts, loans, pledges and assets.[16]

Therefore this Freedom delivers the information to the Member States that they have the obligation to reduce and abolish any hindrances that appear in the transnational capital movement and money transfers for an effective functioning in the internal market.

[...]


[1] Cf. GRUPP, Claus. Binnenmarkt Europa Grenzenlos [online]. Stuttgart: Aktion Europa. OMNIA Verlag GmbH, June 2012 [last accessed on 10 August 2014]. Retrieved from: http://www.europarl.europa.eu/brussels/

website/content/modul_05/start.html#08

[2] Cf. Bayerische Staatskanzlei. Der Europäische Binnenmarkt [online]. Bayerische Staatskanzlei (StK), n.d. [last accessed on 10 August 2014]. Retrieved from: http://www.bayern.de/Einfluss-Bayerns-.1189.22814/index.htm

[3] Cf. Ibid.

[4] Cf. Valuenet. Warenverkehrsfreiheit [online]. Valuenet GmbH 2000, Content Recht und Steuern, n.d. [last accessed on 11 August 2014]. Retrieved from: http://www.rechtslexikon-online.de/Warenverkehrsfreiheit.html

[5] Cf. SCHUBERT, Klaus & KLEIN, Martina. Zollunion [online]. Bonn: Das Politiklexikon 5th Edition, Dietz-Verlag 2011 [last accessed on 11 August 2014]. Retrieved from: http://www.bpb.de/nachschlagen/

lexika/politiklexikon/18510/zollunion

[6] Cf. Valuenet. Warenverkehrsfreiheit [online]. Valuenet GmbH 2000, Content Recht und Steuern, n.d. [last accessed on 11 August 2014].

[7] Cf. VAN BÖMMEL, Sophie. Die Grundfreiheiten des Gemeinsamen Europäischen Marktes [online]. Hamburg: Europe Direct, Info-Point Europa, 26 May 2005 [last accessed on 12 August 2014]. Retrieved from: http://www.infopoint-europa.de/aktuell/beitragsarchiv/11-aktuell-beitraege-grundfreiheiten-des-gemeinsamen-marktes

[8] Cf. Valuenet. Personenverkehrsfreiheit [online]. Valuenet GmbH 2000, Content Recht und Steuern, n.d. [last accessed on 11 August 2014]. Retrieved from: http://www.rechtslexikon-online.de/

Personenverkehrsfreiheit.html

[9] Cf. VAN BÖMMEL, Sophie. Die Grundfreiheiten des Gemeinsamen Europäischen Marktes [online]. Hamburg: Europe Direct, Info-Point Europa, 26 May 2005 [last accessed on 12 August 2014].

[10] Cf. Valuenet. Personenverkehrsfreiheit [online]. Valuenet GmbH 2000, Content Recht und Steuern, n.d. [last accessed on 11 August 2014].

[11] Cf. VAN BÖMMEL, Sophie. Die Grundfreiheiten des Gemeinsamen Europäischen Marktes [online]. Hamburg: Europe Direct, Info-Point Europa, 26 May 2005 [last accessed on 12 August 2014].

[12] Cf. Valuenet. Personenverkehrsfreiheit [online]. Valuenet GmbH 2000, Content Recht und Steuern, n.d. [last accessed on 11 August 2014].

[13] Cf. Valuenet. Dienstleistungsfreiheit [online]. Valuenet GmbH 2000, Content Recht und Steuern, n.d. [last accessed on 11 August 2014]. Retrieved from: http://www.rechtslexikon-online.de/Dienstleistungsfreiheit.html

[14] Cf. VAN BÖMMEL, Sophie. Die Grundfreiheiten des Gemeinsamen Europäischen Marktes [online]. Hamburg: Europe Direct, Info-Point Europa, 26 May 2005 [last accessed on 12 August 2014].

[15] Cf. Valuenet. Dienstleistungsfreiheit [online]. Valuenet GmbH 2000, Content Recht und Steuern, n.d. [last accessed on 11 August 2014].

[16] Cf. VAN BÖMMEL, Sophie. Die Grundfreiheiten des Gemeinsamen Europäischen Marktes [online]. Hamburg: Europe Direct, Info-Point Europa, 26 May 2005 [last accessed on 12 August 2014].

Excerpt out of 9 pages

Details

Title
The four freedoms of the European Union
Grade
2,0
Author
Year
2014
Pages
9
Catalog Number
V339299
ISBN (eBook)
9783668292215
ISBN (Book)
9783668292222
File size
513 KB
Language
English
Tags
Grundfreiheiten, Europäische Union, Four Freedoms, Trade, EU, International Relations, International Business, BWL
Quote paper
Sarah Roggenthien (Author), 2014, The four freedoms of the European Union, Munich, GRIN Verlag, https://www.grin.com/document/339299

Comments

  • No comments yet.
Read the ebook
Title: The four freedoms of the European Union


Upload papers

Your term paper / thesis:

- Publication as eBook and book
- High royalties for the sales
- Completely free - with ISBN
- It only takes five minutes
- Every paper finds readers

Publish now - it's free