Preface :: Economics

PrefaceSince the early impost union, the European juncture has been keen to prepargon a single market for its penis states. In this assignment, I amgoing to discuss to what extent the European Union has created asingle integrate economy for its member states.2. IntroductionFrom the early Customs Union to the Single European Market to therecent Single European Currencythe Euro, the European Union achieveda lot of successes in the process of creating a single integratedeconomy for its member states in the last fifty years.Nonetheless, with so many successes, the European Union still have along way to go to create a true single economy for its member states.For example, there are still significant differences of corporategovernance regimes and social/labour models between member states. Andthe enlargement towards Central and Eastern Europe is anotherincomplete queen-sized task for the European Union.In the following, I am going to discuss, with more details, to whatextent the Europ ean Union has created a single integrated economy forits member states.3. Major Achievements3.1 Customs Union and The Early EnlargementIn 1948, the Benelux--a customs union in industrial goods was formedby the Netherlands, Belgium and Luxembourg. After the Treaty of genus Parisand the Treaty of Rome were signed, the customs union comprisedBenelux, France, Germany and Italy and was extended to all industrialgoods (not just for coal and steel). In 1969, the customs unioncompleted the elimination of customs duties and quantitativerestrictions on the import and export goods between the original six.(McDonald D, 1999) This was the most basic economic arrangement of theEU.Between the elimination of tariffs and quotas and the agreement ofestablishing the Single European Market, there was very littleprogress towards the single market. (McDonald D, 1999) Butenlargements were very successful with member states growing from 6 to15 which included Denmark, Ireland and the United region joined i n1973, Greece in 1981, Spain and Portugal in 1986 and Austria, Finlandand Sweden in 1995. (Europa, 2003a)3.2 The Single European MarketIn 1985, the European Commission chaired by Jacques Delors published a livid Paper proposing the member states for completing the internalmarket. This white paper made it clear that there were three types ofbarriers (physical, technical and fiscal) standing in the way of the extremity of the internal market. (Mercado S. et al, 2001) In thenext year, 12 member states signed the Single European Act whichcontained a blueprint and a timetable for adopting over 270liberalising measures which would be required for the creation of asingle market. (Europa, 2003a)Between the passing of the Single European Act and the deadline of 31st