Second, member states also had to dismantle quantitative restrictions (or quotas) on goods sold to each other. They had to discontinue the imposition of measures which resembled quantitative restrictions. One case was that of West Germany which had a law which banned the sale of liqueurs of low alcohol content. French Cassis de Dijon, manufactured from blackcurrants, failed to meet the standard and imports into Germany were banned. The effect of this rule was equivalent to the imposition of a zero import quota. These measures, designed to create internal free trade in goods, were complemented by a requirement to progressively abolish restrictions on the freedom to supply services across frontiers such as banking, insurance and
The European governments had to remove all forms of tariffs and measures equivalent to quotas. Restrictions on the freedom to supply services are lifted. However, the Non-Tariff Barriers (NTBs)still since the Rome Treaty provided the Community institutions with powers to control the NTBs.
The SEM had a common currency. The euro, which was introduced in 2002, is the single European currency which had replaced the national currencies of the 27 member countries of the European Union (euroland) that began on 1 January 1999. The exchange rates of the euroland countries were fixed to the euro. ...Show more