EU Single Market
Having initially started as six countries (Belgium, France, Germany, Italy, Luxembourg and the Netherlands), the EU is now the world's largest international single market. Following the expansion of the EU in May 2004 (the A8 countries as well as Cyprus and Malta) and in January 2007 (Bulgaria and Romania), the Single Market is now made up of 27 Member States. With almost 500 million people generating €12 trillion in economic activity, the EU is a bigger trading area than the US and Japan combined and accounts for over half of all UK trade in goods and services.
Since its launch on 1st January 1993, the Single Market has brought major benefits to businesses, consumers and employees alike. The Single Market has been a key driver for growth, with Member States trading twice as much with each other as they would do if the Single Market were not in place. The single market has also contributed increased growth of at least 1.85% and the creation of 2.75 million new jobs across the EU. Some of the changes that have come with the Single Market have been very noticeable – border controls have been abolished, cutting costs to business and speeding up the physical movement of goods and people across the EU. Other changes have been less noticeable, but have made a real difference to people’s everyday lives. Standards have been harmonized for hundreds of products, producing a level playing field for manufacturers across the EU, regardless of where they are based. And ‘mutual recognition’ of goods by all Member States means that if a product is good enough to be sold in one country, it cannot be excluded from sale in another. The overall effect has been to turn the EU into a “domestic” market for both businesses and consumers.
The EU is based on the four freedoms – the free movement of goods, services, people and capital. It is these four freedoms as set out in the EC Treaty that forms the basis of the Single Market. The Government believes that a strong Single Market benefits all Member States and operating at its full capacity provides a platform for growth and job creation.
Recent Developments
The European Commission launched a consultation on a strategic initiative to reinforce the Single Market by 2012 in October 2010. This is known as the Single Market Act. The consultation closed on 28th February. Further information regarding the consultation can be found on the Commission’s website. The UK’s response to the consultation can be found at the link below.
The Single Market Act (PDF, 170 Kb)
Further information can also be obtained from the Foreign & Commonwealth Office's and EU Commission's Living and Working in Single Market web sites, click on links below:
