The Four Freedoms of the European Union Internal Market
The Four Freedoms of the European Union
The European Union establishes a common customs tariff in relations with third states and prohibits quantitative restrictions on imports or exports between member states.
Free Movement of Persons
The free movement of persons is divided into two core concepts regarding economic activity:
- Free Movement of Workers: The right to work as an employee in another member state.
- Freedom of Establishment: The right to open your own business or provide services independently.
This principle allows nationals of a member state to move to another to undertake economic activity. This involves two types of measures:
- Right of Movement and Residence: Removing barriers to the entry, stay, and departure of nationals.
- Equal Access: Establishing free and equal access for all EU nationals to economic activities.
Freedom of Establishment and Services
Freedom of establishment allows individuals to open a business in another state under the same conditions as local nationals. This is complemented by the freedom to provide services, which removes restrictions on cross-border service provision and eliminates discrimination based on nationality or place of establishment.
Free Movement of Capital
This involves removing all obstacles to the full liberalization of capital movements for residents within the Union. It eliminates discrimination based on nationality, residence, or the location of the capital, facilitating transfers between member states or to non-residents.
Economic and Monetary Union
These four freedoms are essential to maintaining the internal market. Furthermore, the Union aims to:
- Establish an Economic and Monetary Union with the Euro as the common currency.
- Promote European interests and values through a unified foreign policy, as affirmed in Article 3.5 of the Treaty on European Union (TEU).