European Union Exam 3 Study Guide extra notes from Dinan and Hix Creation and Regulation of the Single Market Single Market 1 white paper in 85 contained the blueprint for implementing the single market by 1992 2 Types of Policy Distributive take money from the country taxes etc and distribute to small groups pork Redistributive take money from one group and give it to another group Regulatory Policy made to fix market failures o Pareto efficiency at least one person is made better off and no one is made worse off what regulations are all about o positive vs negative integration of Single Market re regulation is positive de regulation is negative What is a single market o no boundaries within market o no national discrimination o no unfair and few fair advantages o common similar regulatory framework Barriers Physical Barriers easy to overcome Fiscal Barriers o tax barriers Technical Barriers everything else o standards the bulk of regulations mutual recognition casis de digon case o between countries breakdown of barriers for movement of goods happened quickly capital deficit o white paper proclaimed that if a product is lawfully manufactured and marketed in one member state there is no reason why it should not be sold freely throughout the community standards are recognized across boarders are the weakest standards the ones that prevail then Yes at first o drastically sped up EU integration o came up w common set of EU rules to get rid of weakest standards problem o aka Harmonization creating a common set of EU regulations new approach vs sectorial integration o new approach used for less important things make sure it doesn t have this and this toys machinery implantable medical devices for the new approach to work govts would have to agree on requirements and proof needed to demonstrate compliance o sectorial integration specific rules for everything reserved for the important stuff o services Financial services lamfalussy processes banking insurance securities FSAP financial services action plan o 42 measures to insure integration of capital and financial markets Lamfalussy report said system was bad too slow did not allow for adjustment and was poorly regulated o suggested creation of European Securities Committee and European Securities Regulation Committee which were both made after a lot of dispute telecommunication services any telephone company could offer callers in most countries a local or long distance service Movement of Workers professional training initially outlined in treaty of Rome Bolkenstien Directive make it easier for service providers to practice medicine for example to move from country to country within the EU politicians fearful of cheap labor migrating from east to o public procurement west in EU cant discriminate products services or goods from different countries govt bought objective and non discriminatory most important of these directives was the so called utilities or excluded sectors directive extending EU public procurement rules to enterprises offering public services such as water energy transport and telecommunication sectors trucking used to be able to ship to other countries but not ship from other countries not very efficient law was eliminated more integration w commercial flights ryanair o common transportation o corporate management did not completely succeed close enough o intellectual property o energy did not completely succeed close enough Fiscal Barriers o Value added Tax VAT price already includes tax harmonizing the VAT tax value added at every step no country less than 15 VAT food is exempt snacks are not UK wanted to leave VAT un harmonized and at the will of market forces which everyone else hated would bankrupt local retailers etc o excise taxes sin taxes taxes on specific items tobacco alcohol etc Implementing and Enhancing the single market o directions not regulations states having to take care of implementation instead of EU o implementations avg EU country has not transposed 1 of EU laws in 2009 slowly going down mostly poor or federal countries that have barriers to o enforcement mechanisms implementation sued by commission fined by ECJ Single Market 2 Competition Policy two branches one dealing with private the other public Mergers o when does the EU make merger decisions when there is market power monopoly or oligarchy can fine up to 10 of the firms global turnover if they want cartels oligarchies Criteria Does not have to be a European Country 1 5 billion euro worldwide turnover big companies 2 250 million euro in European turnover 3 more than 1 EU country o mergers now must be prior authorized commission can intervene even if the merger does not meet above rules o What and how do they decide either prevent mergers or present stipulations can fine up to 10 of the firms global turnover if they want usually done informally by commission only 1 merger blocked a bias towards EU companies and business in Europe Ya year on avg o Subsidies from state govt probably not much done commission looks into it commission rarely prohibits aid oftentimes attaches conditional approvals Ryanair clashed w commission over subsidies and internet transparency problems w state aid issue after accession of eastern European countries which were pretty much socialist and the state owned everything commission tolerated pre accession aid but prohibited anymore from happening state can put blame on commission for giving less subsidies to Environmental Policy companies History of EU environmental policy o piecemeal approach at first o EU did not have much competence o after the SEA EU had more competence o increased competence in subsequent treaties Improving national environmental standards o labeling auditing and regulating o wildlife and ecosystems o emissions o water pollution o waste management Enforcement of environmental policy o mostly up to the national govts o commission can sue and ECJ can fine o EEA European Environmental Agency Social Policy generally weak because UK gender social equality movement across boarders working conditions and workers rights industrial democracy Explaining different regulatory outcomes in readings why more deregulation than re regulation not as powerful as US EPA no direct enforcement power deregulation is to create pareto efficient outcomes while re regulation replaces sub national rules with EU policy nations would rather de regulate then put more regulations on themselves why more product standards