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Selected Online Reading on the Single Market: The Origins and Evolution

Find a list of selected electronic books and articles, online databases, newswires and training sessions to enhance your knowledge from home.

History

Abstract by the author: This article offers a historical assessment of the ‘Europe Open for Business’ campaign, launched in 1988 by Margaret Thatcher's Conservative government and related to the programme to complete the single market. The campaign, which greatly increased business awareness of the 1992 programme, was a unique propaganda exercise that emphasized the importance that the Conservatives attached to the single market. However, the campaign was undermined by Thatcher's September 1988 Bruges speech. Using contemporary public opinion data related to the single market, the article also argues that it was limited by the decision to target solely a business, rather than a public, audience. Through its assessment of the Europe Open for Business campaign, the article thus contributes to four areas of inquiry: British government propaganda over European integration; Conservative Party European policy; the growing literature on the Bruges speech; and broader debates on the role of publics in the European integration process.

Abstract by the author: El objetivo de este artículo es situar el actual mercado único europeo en una perspectiva de largo plazo que ayude a entender mejor las fortalezas y debilidades de este experimento singular. Me centraré particularmente en la cuestión de la legitimidad.Para ello utilizaré elementos de análisis histórico, económico y político. Como adelanto de las conclusiones diremos que la supervivencia y el buen funcionamiento de un mercado interior como el de la UE dependen crucialmente en su legitimación por un demos basado en un sólido sentimiento de pertenencia de la población. Este el gran reto actual de Europa.

Abstract by the author: This article traces the origins of the European economic constitution in the debate on Article 30 of the EC Treaty (general rule on the free movement of goods) between 1966 and 1969, which resulted in Directive 70/50. In this, the first archive-based analysis of the policy origins of the Court's Dassonville (1974) decision, the article demonstrates that there was a strong continuity in the investment by a number of key actors in focusing on Article 30 to create the single market from the mid-1960s. These civil servants and lawyers provided the backbone for the Commission's transformation of the Cassis de Dijon judgment (1979) into a powerful tool, driving back the need for legislative harmonisation and making it a cornerstone of the Single European Act of 1986. The article therefore analyses one of the key moments in the transformation of European law.

Abstract by the author: The article presents current views from the Commission staff and independent analysts on the types and the magnitude of the economic benefits provided by the EU Single Market as well as channels through which they materialise. The article first looks both at the already obtained and yet-to-be reaped gains, from the macroeconomic, sectoral and firm perspective. The article concludes that whilst gains have already materialised, significant benefits are still to be reaped, especially with more national reform effort.

Abstract by the authors: Which has a more complete market, the United States or the European Union? 

Abstract by the author: A paradox lies at the heart of the literature on the formation of the European single market. On the one hand, there is a broad consensus concerning the importance of increased international competition as one of the main reasons for the relaunching of European integration in the early 1980s. On the other hand, the emergence of the single market is depicted as an internal process unshaped by concerns for extra-European competition. I challenge this view by arguing that from its very inception, the single market was conceived as a means to enhance the external competitiveness of transnational corporations from Europe. In this process, deep integration through the harmonisation of technical standards and regulations played a major role. Against this background, the dynamics of regionalisation represent a distinct response to global competition while European transnational state-building appears to be fundamentally geared towards improving the ability of European TNCs to successfully compete on international markets.

Abstract by the author: This article looks at the UK Labour Party’s view of the EU single market over the last four decades, focussing on three case study periods when this issue was particularly salient: first, the time of the single market’s introduction under Neil Kinnock’s leadership; second, the A8 accession with Tony Blair as Labour Prime Minister; and third, between the 2016 European referendum and 2019 general election during Jeremy Corbyn’s time as party leader. This historical narrative uses the theoretical approach of Harvard economist Dani Rodrik—of a ‘trilemma’ faced by national policy makers in response to globalisation—as a lens to describe a clear arc in Labour’s policy towards the single market across the three case studies. A position of initial scepticism moved to support under Kinnock’s leadership, and then active encouragement under Blair, before coming back again under Corbyn to uncomfortable non-commitment. This arc directly correlates with the ebb and flow of the party’s overall economic approach—first the Keynesian, national Alternative Economic Strategy at the time of the party’s 1983 general election defeat; then, the deviation under Blair to a policy that actively encouraged cross-border market liberalisation; and finally the return to an Alternative Economic Strategy-style approach under Corbyn.

Law

Abstract by the author: President Baudenbacher set out the main features of the EEA Agreement and its two pillar structure in this lecture delivered on the occasion of Mads Andenas’ 60th birthday. The President explained the role of surveillance and judicial control, and the importance of the independence of the EFTA College members and justices of the EFTA Court. Some immerse themselves in issues of sovereignty but the “beef” of the EEA Agreement is single market law. Single market law is economic law. The EFTA Court in the majority of its cases has faced novel legal questions. Baudenbacher explained how ‘homogeneity’ between the ECJ’s and the EFTA Court’s case law must be reached through discourse, in a dialectic process. He explained different constellations with the ECJ going first or the EFTA Court going first. The EFTA Court’s judicial style is different from that of the ECJ. The symbiotic relationship of the two EEA courts is marked by mutual respect and dialogue fostering the flow of information in both directions, with the EFTA Court regularly cited by the ECJ when interpreting EU law.

Abstract by the authors: Highlights revised rules introduced by EU legislation including Directive 2019/1023 (Restructuring Directive) to facilitate cross-border mergers and restructurings of EU companies. Notes measures allowing cross-border operations to be blocked if performed for a fraudulent purpose, strengthening employee participation rights, removing obstacles to freedom of establishment in the Single Market, and encouraging the use of digital tools.

Abstract by the author: Are the trade philosophies behind the EU internal market and the WTO international market converging or diverging; and are we, or are we not, moving towards a ‘common law of international trade’? Twenty years ago, an interesting—and swiftly famous—answer to this question was given by Joseph H.H. Weiler. Studying the ‘constitution of the common market’, the historical evolution of free movement law is here divided into five periods or generations. The underlying Weiler thesis is thereby as simple as it is beautiful: starting with an early radical philosophy in Dassonville, the European Union has gradually and consistently moved away from its original hyper-liberal approach towards an ever more deferential approach; and the transformation of Article 34 TFEU into a discrimination format ultimately leads to a convergence with international law. What are the empirical and normative credentials of this stylised construction of the internal market? This article argues that there are fundamental shortcomings in this standard interpretation of the evolution of the internal market, and that a historical reconstruction arrives at a very different empirical and normative picture. What can this ‘revisionist’ result mean for EU law scholarship in general? If EU constitutionalism wishes to ‘re-constitute’ its object of study properly, it needs to abandon the abstract ways of philosophizing that have become commonplace in the last 25 years. Part and parcel of this methodological renaissance must be a renewed commitment to test (constitutional) theory against (judicial) practice.

Abstract by the authors: In this article we investigate how well the single market functions in practice by examining barriers to trade in goods markets and we discuss efforts to improve the governance of the single market. We use two unique datasets of specific trade obstacles to empirically examine which barriers continue to undermine EU cross-border trade, and whether non-judicial remedies have provided some degree of effective informal market governance in tackling trade impediments. Based on four hypotheses on country, industry and policy variables we test the probability of removing trade barriers in the pre-litigation phase of infringement proceedings rather than by Court of Justice of the European Union (CJEU) decisions. We then assess the usage and effectiveness of the informal mechanism Solvit to resolve trade obstacles in the single market. We conclude that informal mechanisms operate in the ‘shadow of hierarchy’ as judicialization remains the last resort option when informal co-operation does not achieve the desired goals.

Abstract by the author: The special provision relating to state monopolies of a commercial character within the EU’s internal market is nestled in the Treaties as the final provision regarding the free movement of goods. This special provision of Article 37 of the Treaty on the Functioning of the European Union (TFEU) is often overlooked, given it is seen to be of lesser significance than the general provisions on goods concerning quantitative restrictions and measures having equivalent effect contained in Articles 34– 36 TFEU. Whilst the case law on state monopolies in respect of goods is elaborate, it is still far from clear how state monopolies within the meaning of Article 37 TFEU are to be handled, as evident from the case law of the Court of Justice. The article analyses three arising issues. Firstly, it investigates the boundary between the special provision of Article 37 TFEU and the general provisions of Articles 34–36 TFEU; secondly, it critiques the public interest aim that was once read into Article 37 TFEU by the Court of Justice; and thirdly, it questions the discrimination reading of Article 37 TFEU, rather than a more elaborate restrictions reading. Conclusively, the article offers grounds for why the special provision of Article 37 TFEU ought to be repealed, which in turn, would provide for a more concerted and consistent approach by subjecting state monopolies to the general free movement of goods provisions of the EU Treaties.

Four freedoms

Abstract by the author: The right of citizens to live and work in any member state is a foundational pillar of the European Union. The views of EU citizens on free movement are characterized by a puzzle: the border-free Europe is seen as the most important achievement of European integration but also appears as a main driver of Euroscepticism. In this article, I argue that this is because of a tension between citizens’ own mobility rights and the mobility rights of citizens from other EU countries. This idea of ambivalence towards free movement is tested with observational data and a survey experiment across 28 EU countries. The results suggest that many citizens hold ambivalent views towards free movement due to a tension between the value of one’s own mobility and the fear of immigration. Their effective support depends on the relative salience of inward and outward mobility. This finding has important implications for the public support of international integration more generally.

Abstract by the author: This paper examines the macro-economic benefits of the Single Market in goods and services by simulating a counterfactual scenario in which tariffs and non-tariff barriers are reintroduced. In this counterfactual scenario, intra-EU trade flows are significantly reduced. Lower trade openness also means reduced market size and less competition. Using empirical evidence on the effect of the Single Market on firms’ mark-ups over marginal costs, we add these competition effects and arrive at a total estimate of around 9% higher GDP on average for the EU, but with a strong degree of heterogeneity across EU countries.

Abstract by the authors: In this article we investigate how well the single market functions in practice by examining barriers to trade in goods markets and we discuss efforts to improve the governance of the single market. We use two unique datasets of specific trade obstacles to empirically examine which barriers continue to undermine EU cross-border trade, and whether non-judicial remedies have provided some degree of effective informal market governance in tackling trade impediments. Based on four hypotheses on country, industry and policy variables we test the probability of removing trade barriers in the pre-litigation phase of infringement proceedings rather than by Court of Justice of the European Union (CJEU) decisions. We then assess the usage and effectiveness of the informal mechanism Solvit to resolve trade obstacles in the single market. We conclude that informal mechanisms operate in the ‘shadow of hierarchy’ as judicialization remains the last resort option when informal co-operation does not achieve the desired goals.

Modern challenges

Abstract by the authors: The European Single Market created a common market for millions of Europeans. However, 30 years after its introduction, it appears that the benefits of the common European project are occasionally being questioned at least by some parts of the population. Others, by contrast, strive for deeper integration. Against this background, we empirically gauge the growth effect that arose from the Single Market. Using the synthetic control method, we establish the growth premium for the Single Market overall and for its founding members. Broadly in line with the predictions made by Richard Baldwin at the onset of the Single Market project, we find significantly higher real GDP per capita for the overall Single Market area of around 12–22 %. In comparison, smaller EU Member States seem to have benefited somewhat more compared to larger countries. The estimated growth effects underline the case for further deepening and broadening the Single Market where possible.

Abstract by the authors: The need for ‘more Europe’ stands out today in an international environment that is contaminated by populism, authoritarianism and demagogy. Consequently, when confronting political radicalism, the domains that the EU should henceforth concentrate on in a positive way must be specified, explaining practically and with pragmatism the reasons for ‘more Europe’. In particular, the EU must deliver concrete benefits that citizens can see in their daily lives, but, at the same time, it has to give them more democratic control over their representation in EU bodies and in the way EU law is shaped and implemented. To accept such progress, the EU must first recognise the critical flaws in its current economic and political architecture, before proceeding to adopt policies that will adequately restore the dynamism of the European dream, leading to a more efficient and just EU. More democracy will help gather support, and ensure renewed progress towards a closer Union in which the single market is meaningfully deepened.

Abstract by the authors: This paper draws on the methods of analysis and synthesis to study the regulatory framework governing the modern operating mechanism of the EU single market. Statistical analysis made it possible to reflect the market dynamics with reference to the pre- and post-COVID crisis periods. Consolidation was applied to merge data on the trade of goods and services – the key elements of the EU Member States' trade indicators. Finally, the method of comparative analysis was employed to compare the single market environment of the EU with markets of other countries. The functioning of the single market depends on shared responsibility between the EU's centralized management and the many policies of its Member States. There are barriers within the single market system that limit the free movement of goods, services, people and capital and lead to an imbalance. These are sanitary and phytosanitary standards, tariff measures, and technical and quantitative barriers.

Abstract by the author: Centrales Element der europäischen Integration ist der gemeinsame Binnenmarkt. Bereits im Vertrag zur Gründung der Europäischen Wirtschaftsgemeinschaft von 1958 angelegt, wurde dieser mit dem Inkrafttreten des Vertrags von Maastricht 1993 Realität. Mit dem Binnenmarkt ergaben sich für die Bürger der EU viele Vorteile: ein breiteres Warenangebot, niedrigere Preise, aber auch die Möglichkeit der Niederlassung für Unternehmen und Arbeitnehmer über Ländergrenzen hinweg. Zweifelsohne ist der Binnenmarkt ein Erfolgsmodell der europäischen Integration. Gleichwohl scheint dies als Fundament der europäischen Integration nicht auszureichen. Entwicklungen wie der Brexit betonen, wie unterschiedlich die Vorstellungen vom Wesen der Europäischen Union (EU) sind. Zusätzlich gilt es bei der Beurteilung des Binnenmarktes, die Herausforderungen der Digitalisierung zu betrachten und seine Außenwirkung auf die Rechts- und Wirtschaftsordnung von Drittländern zu berücksichtigen. Mit Erfolg und Entwicklungsbedarf des gemeinsamen Marktes beschäftigte sich der Arbeitskreis Europäische Integration (AEI) auf seinem Jahreskolloquium 2020 im November vergangenen Jahres. Der Fokus lag dabei auf der Frage, wie der Binnenmarkt den Unionsbürgern konkret nutzen kann.

Abstract by the author: Border effects on firms’ performance are typically estimated following reduced barriers to trade, for instance due to new trade agreements. This paper estimates a border effect on increasing barriers for firms located outside of a new external EU border following the 2004 and 2007 EU enlargement. In a repeated cross-section of three flows of EBRD-World Bank survey data, the study encompasses 23 border regions in 10 countries, four of which bordered new EU/Schengen countries. Taking border transformations as exogenous changes to firms’ environments, and focusing on small and medium-sized enterprises near borders, the results indicate that five years after enlargement, firms in non-EU member states near a new external EU border experienced a fall in sales of 40% and exports of 70% relative to firms near borders that did not change. Firms on the EU side of the same border experienced no such negative effect. Ten years after enlargement, the negative effects effectively disappeared.

Brexit

Abstract by the author: Brexit represents one of the biggest challenges for the European Union since its establishment. The recent political and institutional developments, the decision of the British Parliament not to accept the exit of the United Kingdom from the European Union without a signed agreement, the decision to negotiate a new deal that must be ratified by both the Member States of the EU and the British Parliament, points towards the fact that neither the Union nor the United Kingdom are effectively prepared for such a decision. The paper presents the recent evolution of Brexit, as well as its possible consequences regarding the internal market. We will present, above all, how the free movement of goods will be affected and how the free movement of persons will be realized, for lucrative purposes. A political analysis of the events will be conducted, as well as an analysis of the applicable normative acts in question. The implications of Brexit on the economy of the Member States and on trade within and outside the European Union will be evaluated, both quantitatively and qualitatively.

Abstract by the author: This article focuses on the European single market, which has been one of the central issues in terms of the impact of Britain's withdrawal from the EU. As the aim of the single market project is to open the internal borders of the EU to the free movement of goods, services, capital, and labor to create cross-jurisdictional markets, the economic and political effects of Brexit will be widespread, if not yet fully understood, outside the British polity. The article looks at the current state of the single market, then highlights the impact of British withdrawal on economic governance, focusing on different market freedoms, given the degree of trade interdependence and integrated supply chains that have evolved in response to changes in goods and services. One of the lessons from Brexit negotiations is the importance of distinguishing between different single market(s) when assessing the impact of British 'exit' on member states. The concluding section focuses on the political safeguards of market integration to manage the relationship between the UK and EU, to illustrate how judicial, market, and institutional safeguards create options and constraints in mitigating the effects of 'exit'.

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