TOWARDS A SINGLE EUROPEAN MARKET : PROBLEMS, PROSPECTS AND IMPLICATIONS

This article examines the ambitious project of creating a Single European Market by 1992, as envisioned by the European Community (EC). It analyzes the main objectives of the project, which aimed to remove all remaining barriers to the free movement of goods, services, capital, and people among member states. The study identifies the major problems and challenges in implementing this vision, including the harmonization of national regulations, tax policies, and technical standards. The research assesses the potential economic prospects of the single market, such as increased growth, efficiency, and competitiveness for the European economy. Furthermore, the paper explores the broader implications of the 1992 project for the international trading system and for developing countries, considering both the opportunities of a larger integrated market and the risks of a "Fortress Europe" with new protectionist barriers.

The Single European Act of 1986 set the ambitious goal of creating a fully integrated Single European Market by the end of 1992, a project that promised to fundamentally transform the European Community. This paper provides a comprehensive analysis of the problems, prospects, and implications of this historic initiative. The first part of the study details the core components of the 1992 project, focusing on the removal of the three main types of barriers: physical barriers (border controls), technical barriers (differing national standards and regulations), and fiscal barriers (varying VAT and excise duties). It explores the immense legislative and political challenges involved in harmonizing the laws of twelve different member states. The second part of the analysis assesses the prospects and potential economic benefits. It discusses the predictions of increased economic growth, job creation, and enhanced global competitiveness that were expected to result from the creation of a large, unified market of over 320 million consumers. The final section broadens the scope to consider the external implications. It examines the concerns of outside trading partners, particularly the United States, Japan, and the developing world, about the potential for the single market to become a "Fortress Europe," raising new non-tariff barriers to trade. The findings suggest that the 1992 project was a pivotal moment in European integration, with the potential to create a more dynamic and powerful economic bloc, but whose ultimate impact on the global economy would depend on the policy choices it made regarding its external trade relations.