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Chapter 16 The Single Market

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  1. Chapter 16The Single Market Cini (ed.) European Union Politics, 2nd edition OUP Online Teaching Resources

  2. Structure of the Lecture • Market integration in historical perspective • Harmonisation: The politics of intervention • The free trade umpire: The ECJ and judicial activism • The 1992 Programme: A blueprint for action • Maintaining and correcting the market • Theorising the single market & Conclusion

  3. Market integration in historical perspective • Objective of creating a single European market – the Spaak Report (1956) • The Treaty of Rome – establishing a common market - Custom union; a common external tariff; the removal of non-tariff barriers (NTBs) • Clash between laissez-faire and interventionist; between regulated capitalism and neo-liberalism

  4. Harmonisation: The politics of Intervention • A policy of harmonisation or standardisation for the creating of a single market • Reconciling differences in national regulatory practices and creating common rules • Reasons for limited success of harmonisation • The decision rule of unanimity • Complex technical process such as NTBs • Lack of political interest • A new regulatory framework

  5. The free trade umpire: the ECJ & judicial activism • The role & power of the ECJ regarding NTBs • Dassonville case in 1974 • Cassis de Dijon in 1979 • Mutual recognition as a crucial step • Promoting mutual reciprocity of standards rather than harmonisation • Only in areas which are not mutually equivalent that member states can invoke national restrictions, practices, and traditions and restrict free trade in the Community

  6. Market Making: The Politics of Neo-liberalism • The failure of Keynesian economic policy (?) • Neo-corporatist class • Growing recognition of a competitiveness gap vis-à-vis the US, Japan and newly industrialising economies • Major steps for making a single market • The European Council meeting in Fontainebleau (1984) • Intergovernmental conference in Milan (1985) • Institutional reform: QMV, cooperation procedure, etc.

  7. 1992 Programme: a blueprint for action • Jacques Delors, Commission president & Lord Cockfield, Internal Market Commissioner • A Commission White Paper ‘Completing the Internal Market’: 1002 Programme • The single market project • The concept of mutual recognition • A policy framework for action; a Community-level regulation • Widespread political support • Obstacles in areas of tax harmonisation, social dimensions & politically sensitive areas

  8. 1992 Programme: a blueprint for action • Debates on the community-building process in terms of the creating of a competitive market economy

  9. Maintaining and Correcting the Market • Market correcting: The politics of regulated capitalism • Structural policy to promote economic and social cohesion / Consumer & environmental protection / Rural development • The single market: balanced between the market-oriented policies & market-interventionist measures

  10. Maintaining and Correcting the Market • Market maintenance: The politics of efficiency • The effectiveness and credibility of the single market • The transposition of EU Directives into national law (problems of infringement & infringement proceedings) • Economic & political efforts by EU institutions

  11. Theorising the single market & Conclusion • The resurgence of European integration in the mid-1980s: Intergovernmentalism Vs Neo-functionalism • Other approaches • Majone’s regulatory approach / Scharpf’s argument on the relationship between economic development and democratic condition

  12. Theorising the single market & Conclusion • The Single European Market – not yet complete, but one of the most noteworthy accomplishments of the European integration project