Common market
An advanced level of economic integration combining a customs union with the free movement of production factors (persons, capital, services).
Definition
A common market represents a stage of economic integration beyond a customs union. In addition to the free movement of goods and a common external tariff, it adds the free movement of persons, services, capital, and freedom of establishment.
The EU Internal Market
The European internal market (or single market), established by the Single European Act (1986) and effective since 1 January 1993, rests on four fundamental freedoms:
- Free movement of goods: elimination of customs duties and quantitative restrictions
- Free movement of persons: right to move, reside, and work in any Member State
- Freedom to provide services: right to supply services in another Member State
- Free movement of capital: removal of restrictions on capital movements
Harmonisation and mutual recognition
The internal market operates through two principles:
- Harmonisation of national legislation (European directives and regulations)
- Mutual recognition: a product lawfully marketed in one Member State may be marketed in others (Cassis de Dijon ruling, 1979)
Implications for operators
The single market eliminates customs formalities between Member States but requires compliance with harmonised standards (CE marking, sectoral directives). Intrastat declarations and the European Services Declaration ensure statistical monitoring of intra-EU flows.