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Questions and Answers
What is the primary focus of Part 1 of the course structure?
Which stage of economic integration typically precedes the formation of a customs union?
What concept is emphasized as central to the EU's identity and relevance in EU law?
Which of the following areas is NOT included in the learning goals outlined for the course?
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What does the course aim to analyze regarding the historical development of the EU?
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What is a defining feature of a Free Trade Area?
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What distinguishes a Customs Union from a Free Trade Area?
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Which of the following accurately describes a Common Market?
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What does an Economic Union combine?
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What is a key characteristic of the Economic and Monetary Union?
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What was the main original goal of creating the Internal Market in the EU?
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Which directive exemplifies the 'Harmonised Model' in the EU?
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Under the Single European Act, how was the process of harmonizing legislation affected?
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What is a significant disadvantage noted in the development of the Internal Market?
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Which of the following best describes the Common Market's development in the 1980s?
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What does the concept of 'mutual recognition' imply in the context of the EU market?
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What is a key characteristic of the Eurozone as noted in the content?
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What can be said about the EU's complete goal of harmonization based on the content?
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What was a primary method through which the Internal Market was expanded?
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What issue does the market development highlight regarding national governments?
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What is the main challenge in creating a common market across multiple states?
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Which method of market integration focuses on creating new rules and institutions?
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In the context of Host Country Control, what applies when economic activities occur in a host country?
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What describes the difference between negative integration and positive integration?
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Which theoretical model is typically associated with balancing regulation and economic freedom?
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What is the primary requirement of the harmonised model of market integration in the EU?
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How does minimum harmonization differ from full harmonization in the EU?
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Under the home country control principle, what rules apply when a product is sold outside its country of production?
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What is a significant concern regarding mutual recognition in the EU?
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What institutional consequence arises from the methods of market integration in the EU?
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What is the primary purpose of establishing the internal market according to Article 26 TFEU?
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Which statement accurately describes the nature of the internal market as defined in Article 26?
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What power does the Council have regarding the functioning of the internal market?
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In the context of EU law, what does the phrase 'ongoing obligation and task' refer to?
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How does the internal market affect consumers in the EU?
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What does the establishment of the internal market signify about national borders?
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What type of freedom does the internal market ensure for capital?
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Which of the following most accurately describes the relationship between member states within the internal market?
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What is an essential characteristic of the internal market as defined in EU law?
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What legal aspect does Article 26 TFEU imply regarding the internal market?
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Study Notes
Stages of Economic Integration
- The stages of economic integration are:
- Free Trade Area
- Customs Union
- Common Market
- Economic Union
- Economic and Monetary Union
Free Trade Area
- States remove all customs duties and quotas on trade between them.
- Quotas are numerical limits on imports and exports.
- Customs duties are additional charges on imports and exports.
Customs Union
- Removes tariffs and quotas from trade between members.
- States apply a common external tariff to goods entering the Customs Union.
- This avoids a race to the bottom on tariffs and quotas.
Common Market
- Allows free movement of goods, services, labor, and capital.
- Aims for optimal resource allocation and efficient production.
- This includes the EU's four freedoms of goods, capital, services, and people.
Economic Union
- A combination of the Common Market and Customs Union.
Economic and Monetary Union
- Complete unification of common and monetary policy.
- Features a common currency, monetary and fiscal policy unification.
- Example: the Eurozone.
Development of the Internal Market
- The original goal was to create economic interdependence to cement peace.
- The "Common Market" began in 1957.
- The "Harmonised Model" aimed for full harmonization.
- The EU implemented issue- and sector-specific initiatives.
Development of the Internal Market: Court Influence
- The Court of Justice of the European Union (CJEU) significantly expanded the Common Market.
- The CJEU shifted towards a home country model.
- The Commission pushed for acceptance of the Court's progress, despite Member State resistance.
- In the 1980s, centre-right European governments pushed for greater liberalisation.
Single European Act (1987)
- Established the internal market as 'an area without internal frontiers in which the free movement of goods, persons, services and capital is ensured'.
- Replaced unanimity with qualified majority voting in single market legislation to facilitate harmonisation.
Mutual Recognition
- The EU prioritized mutual recognition over complete harmonisation.
- This allowed for Member State exceptions, but national rule changes were limited by the Treaty and the CJEU.
Eurozone
- 20 Member States are part of the Monetary Union.
- It has expanded since its founding in 1999 with 11 members.
- Features a common monetary policy.
Regulation of the Internal Market
- Article 169 TFEU aims to promote consumer interests, protect health, safety, and economic interests, and promote consumer rights.
- Article 114 TEU is a key piece of legislation used to support the internal market.
Consumer Protection
- National consumer rules can impede free movement and be subject to harmonisation.
- The importance of 'market citizens' potentially outweighs other values.
- This has led to clashes between market freedoms and social values.
Key Takeaways
- The EU has multiple stages of market integration.
- The EU's internal market is defined by Article 26 TFEU and regulated by Article 114 TEU.
- The purpose of the internal market is to create economic interdependence and ensure peace.
- The internal market is a complex and evolving system.
Market Integration
- Market integration involves creating a common market across multiple states.
- It balances regulation and economic freedoms.
- There are two main models: negative integration (removing barriers) and positive integration (creating new rules and institutions).
Host Country Control
- Involves applying the rules of the country where the economic activity takes place.
- It's a typical model for economic interaction between states.
- The EU internal market goes beyond this model and includes rules on non-discrimination.
Harmonised Model
- Involves one set of rules for the entire economic market.
- These rules are set centrally.
- Products and services must comply with these rules to be freely sold within the union.
- EU harmonization allows Member States to retain some discretion.
Home Country Control
- Applies the rules of the country where a product is produced, not where it's sold.
- Requires a high level of trust between countries.
- The EU doesn't have absolute trust, and host countries can deny market access even with mutual recognition.
Consequences of Market Integration
- Raises questions about sovereignty, institutional power, and welfare protection.
- Concerns about democratic decision-making processes.
- Explores the definition, regulation, and impact of the internal market on consumers.
The Internal Market
- Defined by Article 26 of the Treaty on the Functioning of the European Union (TFEU).
- It's an ongoing obligation, not a one-time project.
- Grants power to the EU to legislate.
Internal Market and Free Movement
- Article 26 TFEU defines the internal market as an area without internal frontiers.
- Guarantees free movement of goods, persons, services, and capital.
- The application of "free movement" is complex.
EU Power To Regulate the Internal Market
- Article 114 TFEU provides the legal basis for regulating the internal market.
- This article allows harmonizing regulations, grants broad powers to the EU, but excludes fiscal provisions and worker's rights.
Tobacco Advertising
- The EU's power to regulate the internal market doesn't grant a general authority over the economy.
- Measures must eliminate obstacles to trade, address market distortions, and be connected to national laws.
Consumers and Market Integration
- Article 169 TFEU focuses on consumer protection, aiming to safeguard health, safety, and economic interests.
- This article is rarely used compared to Article 114 TFEU.
- Conflicts can arise between free movement and consumer protection.
Market Citizens
- Consumers who engage in economic activity are considered "market citizens."
- Market values can take precedence over other social values, leading to clashes between market freedoms and other social values.
Conclusion
- The EU is a real-world example of market integration.
- The Internal Market is defined by Article 26 TFEU and regulated under Article 114 TFEU.
- Market integration entails balancing regulation and economic freedoms within a complex, multi-layered framework.
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Description
Explore the various stages of economic integration, including Free Trade Areas, Customs Unions, Common Markets, Economic Unions, and Economic and Monetary Unions. Learn how these stages facilitate trade and economic cooperation among countries. Assess your understanding of the benefits and structures associated with each integration stage.
