The Single Market I 4 23 12 1 54 PM Types of Policy Distributive policy Redistributive policy Regulatory policy o Pareto efficiency and the public interest o The distributive effect of regulation o Positive v negative integration of Single Market What is a single market No boundaries borders within market No national discrimination No unfair and few fair advantages Common similar regulatory framework Physical barriers Borders and customs Movement of goods v movement of people Technical barriers Standards o Mutual recognition Status Quo Country with the weakest standards rule the EU strength of alcohol really only the Germans would be worried about this Chocolate What is chocolate Belgium In order to be chocolate need 4 ingredients o Cocoa cocoa butter milk sugar o Most British chocolate does not meet this standard Belgium o Did not want this watered down chocolate in o Cannot allow fake chocolate in our market rest of the EU thought they were crazy If countries cannot agree under any of he other approaches Mutual Recognition will reign Need to put together a QMV o Harmonization Come up with a common set of standards UCJ came up with the standard of countries recognizing other country s standards o New approach v sectoral integration Sectoral Higher sector of the economy and came up with detailed standards for the regulation Take an entire sector and set up a list of rules and regulations Leads to possible watering down of standards Dangerous or important decided by this Car bumpers o If a car gets in a crash the car has crumple bumpers that will crumple if the car hits people so it won t kill the person hit Instead of the EU coming up with the detailed rules the EU will set a minimum standard which countries can surpass Leave it up with the companies to figure out how to do it Generally toys get looked at under this Certify that the company has met the standard and that it isn t dangerous CE European certification New o Testing and certification What is the level of safety quality do you want Leaves more up to the discretion to the individual companies Services harmonized o Financial services Need to be agreements on financial services If you are a Belgium and you put your money in a foreign bank is it protected yes What if a foreign bank wants to open a bank on foreign soil allowed to do this as well Whose regulations rule over the banks We will let every country to continue to have their own standards EU must vote to do this Includes drugs as well Amsterdam has its own rules on drugs Regulate drugs as they see fit Must have some amount of capital in the bank Rules governing the branch of the bank are the same rules that govern the head of the bank o Telecommunications Skipped o Professional training another country country Public Procurement Transportation Done nationally Doctor who got his certification in France can work as a doctor in Common standard as to how you can become certified in another o Allow elimination of borders border controls Trucking Train service Trucking Cabotage rule that says you are not allowed to return with goods Got rid of these rules Airline Service Domestic air service is reserved to domestic airlines Got rid of these rules as well Corporate management o Shareholder rights Intellectual property Energy o EU agencies that could provide patents and trademark copy rights o Same rules for the number of years it lasts o Energy market tends to be segmented however they tried to break that up some o Still tends to be national related Fiscal Barriers Value Added Tax VAT 20 30 o Similar to a sales tax o Tax on all products sold o Tend to be higher than US o Not progressive EU has a more regressive tax system than the US o High degrees of variation of the VATs in different countries Set a floor no country to go below a certain VAT if a country wants to go above the floor VAT they could Excise taxes Implementing and Enforcing the Single Market Implementation Open method of coordination Level and pattern of compliance Enforcement mechanisms Single Market II 4 23 12 1 54 PM Competition Policy for the single market to function properly competition is essential Mergers o When does the EU make merger decisions If competition is needed companies can merge if approved by the Commission o What and how do they decide After the Merger Reform more flexibility was introduced into the time frames to improve the ability of companies to respond to the Commission concerns Commission has to approve the merger o International mergers US Federal Trade Commission Anti trust policy o Outlaw a variety of agreements between companies that would restrict competition such as cartels price fixing or predatory pricing agreements exclusive sales agreements and discrimination on the grounds of nationality by a firm in a dominant position in a national market and ensure that publicly owned industries abide by the EU competition rules Subsidies History of the EU environmental policy Piecemeal part of Single Market Environmental Action Plans action programs o Highlighted 4 areas o 1972 the heads of government agreed to launch a series of environmental Climate change nature and biodiversity environment and health management of natural resources and waste o While allowing member states to apply higher environmental protection standards if they wished the treaty requires the EU to develop a common environmental policy to achieve a high level of protection and to rectify environmental damage at source based on the polluter pays principle Inclusion in SEA Increased competence in all subsequent treaties o Not covered in the Treaty of Rome but covered in all following treaties Improving national environmental standards to name some Labeling auditing and regulating Wildlife and ecosystems Emissions Water pollution Waste management Enforcement of environmental policy Role of the Commission and ECJ o Charged with enforcing the standards set forth in the new environmental agreements European Environment Agency EEA o Set up in 1994 o Responsible for collecting data and supplying information for new environmental legislation developing forecasting techniques to enable preventive measures to be taken and ensuring that the EU environmental data are incorporated into international environmental programs National enforcement charged with enforcing the new environmental standards if they can t enforce it then the EEA and ECJ will take control Social Policy Social Charter and Social Protocol o Social policy