ariff
В· Required the member states to abolish obstacles to the free movement of factors. In order to facilitate this free movement of goods, services and factors of production
В· Provided for any necessary harmonization of member state laws
The Treaty of Rome is one of the treaties that forms the Community of European Member Sates known today as the EU. The main objective of the original Treaty was to achieve a single integrated market possessing the following features:
В· Free movement between Member States of goods, unimpeded by customs duties and quantitative restrictions;
В· Free movement of labor;
В· Free movement of services;
В· Free movement of capital;
В· Trade protection where appropriate against non-Member countries by way of a common external tariff, ie a customs barrier, so that the same duty would be levied on goods coming into the Community regardless of which Member State imported the.
In 1957 the governments of France, West Germany, Italy, the Netherlands, Belgium and Luxembourg signed the Rome Treaty. In so doing they agreed to create what came to be known as the Common Market or, more accurately, the European Economic Community. That institution has remained the movement towards closer union and economic integration in Europe. It was course accompanied by the creation of Euratom and had indeed been preceded by the European Coal and Steel Community of 1951. * p> STAGES OF ECONOMIC INTEGRATION
В· There are stages which brought impact to the development of EEC. These stages came to existence after Treaty of Rome. p> Economic integration can take various forms and these can be ranged in a spectrum in which the degree of involvement of the participating economies, one with another, becomes greater and greater.
1. The free trade area is the least onerous in terms of involvement. It consists of an arrangement between states in which they agree to remove all customs duties and quotas on trade passing between them. Each party is free, however, to determine unilaterally the level of customs duties on imports coming from outside area. It is first step toward improvement of economy. Several countries agreed to sell freely from one country to another. For example; NAFTA, OPEC, ASEAN and last is EFTA, which belongs to EU. p> 2. The next stage is Customs Union. Here tariffs and quotas on trade between members are also removed but in addition the members agree to apply a common level of duty on goods entering the union from without. The latter is called the common customs, or common external, tariff. p> 3. Next come the Common Market which is only one Common Market in the world belong to EU. Single Market is known as Common Market too, it has freedom in following;
В· Freedom of Labor
В· Freedom of Capital
В· Freedom of Persons
В· Freedom of Goods
And this technical term implies that to the free movement of goods within the customs union is added the free movement of the factors of production-labor, capital and enterprise.
4. Finally there is the economic union. This is a common market in which there is also a complete unification of monetary and fiscal policy. There would be a common currency which would be controlled by a central authority and in effect the member states would become regions within union. Euro is the official currency of EU. This stage is the further step in their stages for time being. EU has aim to include Political Union which is lies behind all these stages. However, for this time is not achievable. Once they gain it will carry a character of Federation of EU.
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The Single European Act 1986
The Single European Act was a document signed in 1986 by the heads of state and later ratified by the parliaments of all Member States. It made the first post-signature amendments to the Treaty of Rome. The complete Act came into force in July 1987, although some sections took effect earlier. It was enacted in the UK in the European Communities Act 1986.
The SEA aimed to provide impetus towards achieving the objectives of the original EC treaties, which were;
В· To transform the relations between Member States into a real European Union;
В· To achieve a common foreign policy;
В· To promote democracy;
В· To speak with one voice;
В· To protect the EC's freedoms and human rights;
В· To extend common policies;
В· To facilitate the Commission's exercise of its powers;
В· To work towards economic integration via Economic and Monetary Union (EMU);
В· To work towards the protection of the general and working environment.
Besides providing for speeding up the legislative process by introducing qualified majority voting, the SEA set out the common intention that the EC shall h...
