Abstract

This chapter first outlines the three main phases of the development of the single market, together with the impetus and philosophy underpinning it. The idea behind the original European Economic Community (EEC) Treaty was simple: barriers to free movement of goods, persons, services, and capital would be removed through the use of treaty provisions that prohibited obstacles to free movement. One aspects of the single market have been reformed following the crisis, notably financial services. The legislature is increasingly moving towards the use of regulations, rather than directives, to ensure greater uniformity and maximum as opposed to minimum harmonization to remove the possibility of national variation. The chapter then examines some of the challenges facing the single market. The challenges essentially concern questions of competence, sovereignty and effectiveness. There are two main approaches to attaining a common market, namely decentralized model and centralized model.