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Analyse the attempts by the EU to allievate the inherent problems of establishing a single market within the Financial Services - Essay Example
Author : swaniawskileona
Finance & Accounting
Pages 6 (1506 words)
Analyze the attempts by the EU to alleviate the inherent problems of establishing a single market within the Financial Services Sector. Introduction Unlike the earlier emphasis by the European Union to remove tariffs and the establishment of a common policy to regulate dealings with the rest of the world, the Treaty of Rome went to an extra length and introduced a single European market (SEM) to facilitate trade in all goods and services amongst the member states…
As a result, the integration process had to take a more heightened effort to ensure it was fruitful. The Commission published a White Paper in 1985, whereby the enabling instrument was the Single European Act (the SEA). The aim of this Act was to remove the non-tariff barriers and to encourage free movement of capital and labor by 1993. It was also agreed that discrimination by all means should cease (House of Lords, 2008, p. 33). The non-tariff barriers Although the European Commission was hell bent on establishing a single market, not much had been achieved by 1980s. Furthermore, by the mid - 1980s, most of the aims of the Rome treaty had not been attained despite the first stage of integration having been completed. Actually, non-tariff barriers were reported to have increased between 1975 and 1985 despite all these efforts. It was thereby realized that a strategy was needed to strengthen the integration among members (Canoy, Liddle and Smith, n.d, p. 3). The Single European Act had, in mind, three major types of non-tariff obstacles to factor mobility and trade, which inspired its objectives. ...