Tutorial 5 - Economic policies (Single market, EMU, trade)
Assigment 1 - Understanding the single market
1. Discuss the key economic historical milestones of the EU/Single Market. Link to Belassa’s
stages of integration. What were the main achievements in each of these stages? Which
barriers to trade were removed?
1951: ECSC
1957: Treaty of Rome and EEC agreement on realising a customs union, the intention, but
was not realised yet. Couple of years later, the industry pushed to complete what they
promised in the Treaty of Rome.
1960: accellerated agreement
1968: Completion of the Customs Union, but there were still NTB’s (for example quality
standards, packaging requirements)
1985: (British budget rebate, they get more money so they are more willing to cooperate,)
Delors was a new commissioner and this lead to a white paper of Lord Cockfield. All trade
barriers (300) that he thought could be and he wanted removed. They wanted a CM
completion by 1992.
1986-1992: This white paper was signed in 1986: the Single European Act, one common
rule. There is one common rule for several things, such as competition law, quality
standards. With mutual recognition there is still different rules. Cassis de Dijon and Belgian
Margerine case.
1993: Common market completion, except for some areas, such as services.
2006: Service Directive, services are not tangible, dentist, lawyers, doctors. Optimal
currency area. The most controversial services are the public services (such as energy,
postal services) and they wanted to exclude this. They did this because it costs way too
much money to send a postal card from The Netherlands from the south of France. This will
cost 400 euros for one postcard and this is way too expensive and this is not interesting to
entrepreneurs. They need to make some money from it. However, if no one does this, the
service will not be provided anymore and sometimes this is necessary. Therefore, the
government takes this over (for example in the public transport) in order to make sure that
there is still a bus in an area where almost no one lives. Broadcasting and audiovisial is one
of the aspects because the governments want to guarantee this ‘freely’, so the cost is higher
than the benefit. There are some channels that are being watched less or more. Guarantee
from all information from all points of view, thats why we also have private and free
channels. The private channels are privatised and the free channels are public. Positive
external effect. This is the background for the services directive’s exclusion of certain areas.
Not all electricity or public transport is being liberalised, it is going step by step.
2010: Monti report, someone had a great idea to bring back the aspects that are still there.
This lead to the Single market I and later on Single market II.
If you want to recognize each others diplomas, first you need an optimal currency area.
2. What were the main pressures for the creation of a Single Market and how was
unanimous agreement secured?
It was the businesses that pressured, which lead to spillover. The EP and the Council took
main road what we wanted to achieve and how we wanted to achieve it. They saw that it
was necesary to bring all strenghts together. Thus, the economic advantages were more
Assigment 1 - Understanding the single market
1. Discuss the key economic historical milestones of the EU/Single Market. Link to Belassa’s
stages of integration. What were the main achievements in each of these stages? Which
barriers to trade were removed?
1951: ECSC
1957: Treaty of Rome and EEC agreement on realising a customs union, the intention, but
was not realised yet. Couple of years later, the industry pushed to complete what they
promised in the Treaty of Rome.
1960: accellerated agreement
1968: Completion of the Customs Union, but there were still NTB’s (for example quality
standards, packaging requirements)
1985: (British budget rebate, they get more money so they are more willing to cooperate,)
Delors was a new commissioner and this lead to a white paper of Lord Cockfield. All trade
barriers (300) that he thought could be and he wanted removed. They wanted a CM
completion by 1992.
1986-1992: This white paper was signed in 1986: the Single European Act, one common
rule. There is one common rule for several things, such as competition law, quality
standards. With mutual recognition there is still different rules. Cassis de Dijon and Belgian
Margerine case.
1993: Common market completion, except for some areas, such as services.
2006: Service Directive, services are not tangible, dentist, lawyers, doctors. Optimal
currency area. The most controversial services are the public services (such as energy,
postal services) and they wanted to exclude this. They did this because it costs way too
much money to send a postal card from The Netherlands from the south of France. This will
cost 400 euros for one postcard and this is way too expensive and this is not interesting to
entrepreneurs. They need to make some money from it. However, if no one does this, the
service will not be provided anymore and sometimes this is necessary. Therefore, the
government takes this over (for example in the public transport) in order to make sure that
there is still a bus in an area where almost no one lives. Broadcasting and audiovisial is one
of the aspects because the governments want to guarantee this ‘freely’, so the cost is higher
than the benefit. There are some channels that are being watched less or more. Guarantee
from all information from all points of view, thats why we also have private and free
channels. The private channels are privatised and the free channels are public. Positive
external effect. This is the background for the services directive’s exclusion of certain areas.
Not all electricity or public transport is being liberalised, it is going step by step.
2010: Monti report, someone had a great idea to bring back the aspects that are still there.
This lead to the Single market I and later on Single market II.
If you want to recognize each others diplomas, first you need an optimal currency area.
2. What were the main pressures for the creation of a Single Market and how was
unanimous agreement secured?
It was the businesses that pressured, which lead to spillover. The EP and the Council took
main road what we wanted to achieve and how we wanted to achieve it. They saw that it
was necesary to bring all strenghts together. Thus, the economic advantages were more
