The European Union's (EU) internal market (sometimes known as the single market, formerly the common market) seeks to guarantee the free movement of goods, capital, services, and people – the EU's "four freedoms" – within the EU's 27 member states.
The internal market is intended to be conducive to increased competition, increased specialisation, larger economies of scale, allows goods and factors of production to move to the area where they are most valued, thus improving the efficiency of the allocation of resources.
It is also intended to drive economic integration whereby the once separate economies of the member states become integrated within a single EU wide economy. Half of the trade in goods within the EU is covered by legislation harmonised by the EU.
The creation of the internal market as a seamless, single market is an ongoing process, with the integration of the service industry still containing gaps. It also has an increasing international element, with the market represented as one in international trade negotiations. Notably, the internal market is open to three non-EU states via the European Economic Area.
Read more about Internal Market: History, Free Movement of Capital, Free Movement of Services, Free Movement of People
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