European Business Law, the fourth volume in our series, shows how the European authorities simultaneously abolish all restrictions on access to and exercise of economic activities and support the growth of domestic markets, through the harmonization the internal legislation or the enactment of genuinely unified regulations.

European Business Law

From the point of view of freedom of trade, the European Union is a customs union, a form of regional integration which is lawful as recognized by Article XXIV of the GATT (General Agreement On Tariffs And Trade), included in the Agreement establishing the WTO (World Trade Organization). The Member States have not only put an end to all restrictions of trade (free trade area), but have also added an external factor to the internal aspect by establishing a common external tariff (CET) at their frontiers.

However the European Union is not merely a customs union. From the outset, the drafters of the Treaty of Rome had in mind the creation of an economic, political and social union between the Member States. Introduced by the Single European Act, current Article 26 TFEU underlines that, “the internal market shall comprise an area without internal frontiers in which the free movement of goods, persons, services and capital is ensured”. The internal market, which was created in a desire to abolish restrictions and to simplify the rules is founded on four pillars - free movement of persons, goods, services and capital which must guarantee to the citizens of the Member States, both legal and natural persons the right to live, work, study or take retirement in another State of the EU; greater competition leading to lower prices, diversification of the range of goods available on the market and which ensure a better level of protection; the possibility of doing business in other Member States.

8. Principle of free movement