The uncompleted common market of 1958 - 1980

The common market, as the Treaty of Rome's main objective, was intended to liberalise exchanges of goods and services between Member States as far as possible by:

§ a customs union, i.e. removing customs duties between Member States and establishing a common external tariff;

§ eliminating quantitative restrictions (quotas) and measures having equivalent effect, to ensure completely free movement of goods;

§ free movement of persons, especially employed persons, services and, to a certain extent, capital.

The programme was not fully completed.

2. The launching of the internal market 1980-1992

This was a return to the ambitions of 1958, and sought to add the common market components that were still outstanding. However, it went further by pushing this ambition to the limit: totally removing the frontier concept to create an area where human and material resources can move freely to ensure optimum use.

- The idea of the internal market was supported immediately by the Member State governments: their support was affirmed in 1982 and regularly confirmed thereafter until the green light was given in Brussels in March 1985, when the European Council:

§ set the end of 1992 as the completion date, and

§ asked the Commission to prepare a programme and timetable for implementation.

- The Commission responded with its celebrated White Paper, approved in June 1985 by the European Council in Milan. This listed about 300 legislative measures to be taken, grouping them under three main objectives:

§ the elimination of physical frontiers, by abolishing checks on goods and persons at internal frontiers,

§ the elimination of technical frontiers: breaking down the barriers of national regulations on products and services, by harmonisation or mutual recognition,

§ elimination of tax frontiers: overcoming the obstacles created by differences in indirect taxes, by harmonisation or approximation of VAT rates and excise duty.

The timetable for adoption was spread out to the end of 1992. The new approach proposed was to get away from the systematic harmonisation of national rules, which would be reserved for essential requirements (such as security and health) and to settle for mutual recognition.

The Single European Act (which was signed in February 1986 and came into force on 1 July 1987) was a revision of the Treaty of Rome. It had two objectives:

§ incorporation of the specific concept of the internal market in the Treaty defining it as ‘an area without internal frontiers in which the free movement of goods, persons, services and capital is ensured’ and setting a precise deadline for its completion: 31 December 1992 [Article 18 (8a)];

§ giving the completed internal market effective decision-making machinery, by introducing qualified majority voting for most subjects concerned, instead of the unanimity that had hitherto been required, such as

§ amendment of the common customs tariff [Article 26(28)],

§ free provision of services [Article 49 (59), second paragraph],

§ free movement of capital (Article 70, repealed subsequently),

§ approximation of national legislation [Articles 94 and 95 (100 and 100a)].