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Single Market

In: Business and Management

Submitted By LCNL
Words 1795
Pages 8
Economics of the European Union

ECN309X

Essay term 1

To what extent did the 1992 Single Market programme create a single market across the EU?

Linde Cloosterman
10418300
14th December 2012
In January 1992 The European Single Market was formed. The prospects were compromising. Hooley et al. (2012) explain that the programme would provide the free flow of products and services, people and capital between the member states of the European Union. Another point was the intention to improve economic performance by lowering costs of trading across national borders within the European Union. But also to boost economies of scale of operation to achieve more competitiveness against the US internal market. However, the developments within the Single Market were not always positive. An example that illustrates this are diverse economies in the euro-zone operating at different speeds, facing different levels of public sector debt but without the freedom to set separate exchange or interest rates (Hooley et al., 2012). The economic crisis within the euro-zone had negative effects on the Single market as well. Therefore it can be questioned: to what extent did the 1992 Single Market programme create a single market across the European Union?
Due to the prolonged economic recession by the beginning of 1980 it was clear that the competitive position of the European Community was decreasing. Outcomes with stagnating negative effects within the European economy, rising unemployment and declining world export shares (Nello, 2009). It is also explained that these developments resulted in uneasiness among the European Community about the growing gap between the economic performance compared to the economy of the USA and Japan, especially in high technology sectors. Besides losing market share within different industrial sectors, such as automobiles and machinery, the...

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