The single market

Especially through the establishment of a customs union, the Treaty of Rome from 1957 created the basis for a single European market which was to promote intra﷓European trade. By the mid-1980s it had become clear, however, that only some of the barriers to free trade between member states had been removed. There were many other barriers – e.g. technical barriers such as different national standards for goods. There were also restrictions on investments between EC member states and on seeking work in other member states. In 1986 the EC member states therefore adopted an amendment to the Treaty – the Single European Act. In the single market, goods, services, labour and capital had to move freely between member states in the same way as in the participating countries' domestic markets. The single market was aimed at promoting higher growth and lower prices through enhanced competition. To obtain the full effect of the single market, i.e. a large "domestic market" covering the entire EC, the provisions also contained a reference to economic and monetary union. However, it was not specified how this was to be introduced.