Single European Market
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The mode of doing business in the modern world has been changing at a very fast rate. Markets have developed and embraced new strategies that have enabled businesses and organizations to create a complex web of the corporate world. Most of these developments have been attributed to advancements in technology that has made it easier to share market information and enhanced communications among different markets. Trading has also been made easier than ever before, with online trading taking the centre stage. Whereas there are still challenges that are being experienced on the market, most of them have been tackled and there is an increased efficiency in the market as compared to some years back.
One of the markets on the global scene that has really grown is the European market. This market began with a few member countries and has grown into an enormous market that can only be compared to the US market in the world in terms of purchasing power. The European countries have been able to form such a sophisticated market by forming a Single European Market. This market can be defined as a market that is integrated in the systems of various countries to enable the movement of goods from one point to another in a market that is shared by different countries. Therefore, the Single Market comprises of different countries that have united with a common goal of not only eliminating trade barriers but also working towards eliminating boundaries that may become a stumbling block to proper functioning of such a market. On the other hand, there is need for unified economic policies among member countries of a single market (Armstrong and Bulmer 13).
Single European Market
The Single European Market has a history that dates back to 1986. However, prior to this year, there had already been plans that had begun way back in 1950s to harmonise the market in Europe so that a common market could be attained. Whereas the Treaty of Rome in 1957 did not capture the actual dreams that these countries accomplished years later, it formed a strong foundation for the unification of the European market years later. The 1957 treaty of Rome led to the formation of two international bodies; the European Atomic Energy Commission and the European Economic Community. These treaties were enacted at the beginning of 1958. One notable difference between the two treaties is that the European Economic Community has been revised on numerous accounts to be able to satisfy the changing needs of the European economy. However, because of the sensitivity of the nuclear energy in the European countries, the European Atomic Energy Commission has seen very little amendments (Harryvan and Harst 104).
The European Economic Commission saw the introduction of the custom union that worked towards harmonising the Custom Union of every nation that was part of this Treaty. The barriers that were posed by different tariffs as determined by different nations were dismantled and a cohesive custom union with harmonized tariffs introduced. This was to facilitate the free movement of goods among the member countries that subscribed to this treaty. There was also to be unrestricted movement of capital and people across borders to conduct their business in any area of jurisdiction that fell under the Rome Treaty without being restricted. This is what established what is commonly known as the common markets in Europe. These tariffs were to be eliminated within a period of 12 years after the signing of the 1957 Rome Treaty. However, the restriction of the flow of people and capital in different markets continued to exists and this necessitated the need for a new way of doing business by the establishment of a new act in 1987 known as the Single European Act that was to aid in establishing an actual free European market. However, there are notable achievements that were obtained under the Rome Treaty. Among them is the establishment of a common tariff of all goods that had their origin from the third world countries (Harryvan and Harst 105).
Since the Rome Treaty could not achieve all that it was purposed for, there was need for a new agreement on the European market arose and therefore plans were set to bring in a new act that would enable total movement of people, capital and goods on these markets. Therefore, in 1987, there was the formation of the Single European Act that was a major amendment of the 1957 Rome Treaty. This act was enacted under the expectations by both business and political leaders in the European nations that the act would enable them to revise the current business environment that did not envision free trade among them to an environment that was more harmonised among the member countries. This was to be achieved through revising of laws and regulations that guided the processes of business in the corporate sector among these countries into synchronise laws and regulations among these countries (Armstrong and Bulmer 14).
The credentials in this act stated that the common market in the European Union would be established by the year 1992. Therefore, the economies that were involved were supposed to ensure that they amended the laws and regulations that governed the way business was run within their jurisdiction to ensure that by the time the actual deadline approached in 1992, they would have streamlined their laws and regulations to fit the expected requirements. However, before the act could be fully ratified, there were two referendums that were carried. The first referendum was a result of the dismissal of the draft treaty by the Danish parliament while the second referendum resulted from the fact that the Irish constitution needed to be modified before the Irish state could be able to ratify the act within the boundaries of its jurisdiction. It is important to understand that time was given so that the act could be debated within the boundaries of its member countries and to give them time to ponder over the act as they prepared for a new dawn of unity in their markets and in their system of governance in business (Armstrong and Bulmer 17).
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