The European Union aimed at obtaining a mutual economy from the member states. In response to the above, a single market arose from the union of these economies consisting of a broad supply-side program termed as the ‘White Paper 1985’ (Barnard 10). A common market aimed at increasing job opportunities while enhancing economic growth, providing a common currency between the member states, and free movement of citizens. Ineffective and enforcement measures have made completion of European Market difficult. In addition, there have been delays in implementation of programs such as legal interpretation of the program in the individual countries. Consequently, compliance costs have increased for individuals who have to deal with different and sometimes difficult requirements in the destination countries (Pohl & Sorsa 35). The enforcement of the single market in different countries varies making some countries resulting into unfair competition, or some form of discrimination. According to Pohl and Sorsa, inspection of the various requirements for different service or product providers may also pose a challenge to the workability of the single market initiative (p. 41).
Ineffective and inefficient redresses curtail the enforcement of the European single market. Effective redresses require the set up of standards and the identification of faulty goods. Moreover, penalties should also be established to discourage businesses from dealing with sub-standard products. On the other hand, there has been a delay in the implementation of the proposals of the European Union because of loop holes in the legal framework. Discrimination among member states continues to be an unsolved problem, which hinders expansion of investment in foreign states or countries. Due to the lack of a single taxation system, most companies suffer double taxation leading to reduced employment opportunities as companies aim at reducing expenses. Little or no attempts are available to curb the double taxation borne by most countries beside the pleas of member countries (Barnard 51).
The available legal actions allow companies to minimize costs through simple and efficient organization of the businesses, but problems arising from legal complications have resulted in the impediment of mergers and takeovers. Firms have incurred extra costs from the single market initiative making them adopt a form of new technological requirements and intermediary costs of investing in new countries (Pohl & Sorsa 57). To provide efficient and competitive environment, national policies in the individual countries should be coordinated to be in line with the objectives of the European single market. Moreover, a body should be set up in each of the member countries to facilitate communication between the member countries due to language barriers. However, this is not a major problem since most member countries use English as the national language even though in its different dialects. Finally, lack of a strong super national body to oversee the coordination and administration of member states hamper growth of trade relations in European business environment (Pohl & Sorsa 47).
Works cited
Barnard C., The law of the Single European Market: Unpacking the premises. Hart
Publishing. 2002.
Pohl G. and Sorsa. P., European Integration and Trade with the Developing.
World Bank Publications, 1992
