Europe, the epitome of the developed world for many scientists and scholars and economists around the globe, is home to a wide variety of markets. European Market includes a wide array of markets ranging from markets of automobiles, machine tools and equipment, Fast Moving Consumer Goods (FMCG’s), textiles and food articles. European markets have become more integrated with the inception of the European Union (EU) in 1992. It consists of twenty-seven member states. The introduction of a common currency such as the Euro across all over Europe as well as internationally has facilitated this process of integration more.
EU is one of the most prominent members of the G-8 nations (Group of eight rich industrialized nations) and is engaged in parleys with the member states from the developing world over many international trade and policy issues. EU now acts as a representative of most of the European countries which are members to the organization.
The concept of the “single European market” or the “EU Single Market” stands as a symbol of free movement of people, goods, services and capital across all European Union members. This aims to remove the barriers to trade and other non-trade barriers that exist between various European countries. On a practical level, this means the possibility for EU citizens to live, work, study and do business throughout the EU in an absolutely free manner and enjoy a wide choice of competitively priced products and services. Today Europe is a single market with a common trade policy, a common agricultural and fisheries policy and a regional policy to assist underdeveloped nations.
Some of the common European Markets include the German Markets, the UK Market, the Spanish Markets and the French Markets, although EU membership extends to Sweden, Portugal, Austria and the Czech Republic. But under the ambit of a “single market” for the whole of Europe, the strategy has been beneficial for all. Members of the EU may restrict the free movement of goods only under special circumstances such as risk resulting from the issues of public health, environment and consumer protection. Approximately half of the trade in goods within the EU is covered by harmonized regulations, while the other half is covered by the non-harmonized’ sector, which is either regulated by national regulations or not specifically regulated at all.
In terms of capital markets, there has been the liberalization of capital movements across all European countries such that EU citizens can conduct most operations abroad as diverse as opening bank accounts, buying shares in non-domestic companies and purchasing real estate. In terms of the free movement of services, the central principles governing the internal market or services has been set out since the time of inception of the EU. This guarantees to EU companies the freedom to establish themselves in other Member States, and the freedom to provide services in any other EU country other than where they are established. The principles of freedom of establishment and free movement of services are two of the so-called "fundamental freedoms" which are of fundamental importance to the EU internal market.