Applied Economics

Abstract

The first page of this assignment offers a guide to the history and institutions of the EU (background to the single market), it also examines the direct effects of integration on international trade in manufacturing goods on direct investments and other international transactions. Topics touched on are the position of UK applications of EEC membership and the general political and economic implications of integration policies in Europe and also advantages to Irish businesses operating in the internal market.

Background to the Single Market Programme

The single market idea is simply to treat the EU as one territory where people, money, goods and services interact freely to stimulate competition and trade, and improved efficiency. The highly choice of goods and services will raise quality and cut prices. This is the basic recipe for prosperity. This year Single Market mark the 20th anniversary of the existence, which has not only fuelled economic growth but has also become a part of everyday life of Europeans. In 1986 the European Union adopted the Single European Act, this allowed for over 280 pieces of legislation to be passed to pave the way for one common law for the EU based on the principle of mutual recognition for law and regulations of member states.

After EEC began to lag behind the rest of the developed world and this makes Delors Commission to take the initiative to attempt to relaunch the common market by publishing the white paper in 1985 that identifies 300 measures to be addressed in order to complete a single market. The white paper was well received and led to the adoption of the Single European act, a treaty which reformed the decision making mechanisms of the EEC and they set deadline of 31 December 1992 for the completion of a single market. The European Single Market based on the free movement of people, goods, services and capital was launched however on 1 January 1993 internal border controls between EU countries...