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The free movement of goods is one of the cornerstones of the European Single Market.
The removal of national barriers to the free movement of goods within the EU is one of the principles enshrined in the EU Treaties. From a traditionally protectionist starting point, the countries of the EU have continuously been lifting restrictions to form a ‘common’ or single market. This commitment to create a European trading area without frontiers has led to the creation of more wealth and new jobs, and has globally established the EU as a world trading player alongside the United States and Japan.
Despite Europe’s commitment to breaking down all internal trade barriers, not all sectors of the economy have been harmonised. The European Union decided to regulate at a European level sectors which might impose a higher risk for Europe’s citizens – such as pharmaceuticals or construction products. The majority of products (considered a ‘lower risk’) are subject to the application of the so-called principle of mutual recognition, which means that essentially every product legally manufactured or marketed in one of the Member States can be freely moved and traded within the EU internal market.
Limits to the free movement of goods
The EU Treaty gives Member States the right to set limits to the free movement of goods when there is a specific common interest such as protection of the environment, citizens’ health, or public policy, to name a few. This means for example that if the import of a product is seen by a Member State’s national authorities as a potential threat to public health, public morality or public policy, it can deny or restrict access to its market. Examples of such products are genetically modified food or certain energy drinks.
Even though there are generally no limitations for the purchase of goods in another Member State, as long as they are for personal use, there is a series of European restrictions for specific categories of products, such as alcohol and tobacco.
Free movement of capital
Another essential condition for the functioning of the internal market is the free movement of capital. It is one of the four basic freedoms guaranteed by EU legislation and represents the basis of the integration of European financial markets. Europeans can now manage and invest their money in any EU Member State.
The liberalisation of capital markets has marked a crucial point in the process of economic and monetary integration in the EU. It was the first step towards the establishment of our European Economic and Monetary Union (EMU) and the common currency, the Euro.
Advantage
The principle of the free movement of capital not only increases the efficiency of financial markets within the Union, it also brings a series of advantages to EU citizens. Individuals can carry out a broad number of financial operations within the EU without major restrictions. For instance, individuals with few restrictions can
- easily open a bank account,
- buy shares
- invest, or
- purchase real estate
in another Member State. EU Companies can invest in, own and manage other European enterprises.
Exceptions
Certain exceptions to this principle apply both within the Member States and with third countries. They are mainly related to taxation, prudential supervision, public policy considerations, money laundering and financial sanctions agreed under the EU Common Foreign and Security Policy.
The European Commission is continuing to work on the completion of the free market for financial services, by implementing new strategies for financial integration in order to make it even easier for citizens and companies to manage their money within the EU.
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The implementation of the principle of free movement of people, is one of the cornerstones of our European construction, has meant the introduction a series of practical rules to ensure that citizens can travel freely and easily to any Member State of the European Union. Travelling across the EU with one’s car has become a lot less problematic. The European Commission has set a series of common regulations governing the mutual recognition of driving licences, the validity of car insurance, and the possibility of registering your car in a host country.
Your driving licence in the EU
The EU has introduced a harmonised licence model and further minimum requirements for obtaining a licence. This should help to keep unsafe drivers off Europe's roads - wherever they take their driving test.
Since 19 January 2013, all driving licences issued by EU countries have the same look and feel. The licences are printed on a piece of plastic that has the size and shape of a credit card.
Harmonised administrative validity periods for the driving licence document have been introduced which are between 10 and 15 years for motorcycles and passenger cars. This enables the authorities to regularly update the driving licence document with new security features that will make it harder to forge or tamper - so unqualified or banned drivers will find it harder to fool the authorities, in their own country or elsewhere in the EU.
The new European driving licence is also protecting vulnerable road users by introducing progressive access for motorbikes and other powered two-wheelers. The "progressive access" system means that riders will need experience with a less powerful bike before they go on to bigger machines. Mopeds will also constitute a separate category called AM.
You must apply for a licence in the country where you usually or regularly live. As a general rule, it is the country where you live for at least 185 days each calendar year because of personal or work-related ties.
If you have personal/work-related ties in 2 or more EU countries, your place of usual residence is the place where you have personal ties, as long as you go back regularly. You don't need to meet this last condition if you are living in an EU country to carry out a task for a fixed period of time.
If you move to another EU country to go to college or university, your place of usual residence doesn't change. However, you can apply for a driving licence in your host country if you can prove you have been studying there for at least 6 months.
Registering your car in the host country
If you move permanently to another EU country and take your car with you, you should register your car and pay car-related taxes in your new country.
There are no common EU rules on vehicle registration and related taxes. Some countries have tax-exemption rules for vehicle registration when moving with the car from one country to another permanently.
To benefit from a tax exemption, you must check the applicable deadlines and conditions in the country you wish to move to.
Check the exact rules and deadlines with the national authorities: https://europa.eu/youreurope/citizens/vehicles/registration/registration-abroad/index_en.htm
Car Insurance
EU citizens can insure their car in any EU country, as long as the chosen insurance company is licensed by the host national authority to issue the relevant insurance policies. A company based in another Member State is entitled sell a policy for compulsory civil liability only if certain conditions are met. Insurance will be valid throughout the Union, no matter where the accident takes place.
Taxation
Value Added Tax or VAT on motor vehicles is ordinarily paid in the country where the car is purchased, although under certain conditions, VAT is paid in the country of destination.
More information on the rules which apply when a vehicle is acquired in one EU Member State and is intended to be registered in another EU Member State is available on this link https://europa.eu/youreurope/citizens/vehicles/registration/taxes-abroad/index_en.htm.
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Quality of work and employment - a vital issue, with a strong economic and humanitarian impact
Good working conditions are important for the well-being of European workers. They
- contribute to the physical and psychological welfare of Europeans, and
- contribute to the economic performance of the EU.
From a humanitarian point of view, the quality of working environment has a strong influence on the overall work and life satisfaction of European workers.
From an economic point of view, high-quality job conditions are a driving force of economic growth and a foundation for the competitive position of the European Union. A high level of work satisfaction is an important factor for achieving high productivity of the EU economy.
It is therefore a core issue for the European Union to promote the creation and maintenance of a sustainable and pleasant working environment – one that promotes health and well-being of European employees and creates a good balance between work and non-work time.
Improving working conditions in Europe: an important objective for the European Union.
Ensuring favourable working conditions for European citizens is a priority for the EU. The European Union is therefore working together with national governments to ensure a pleasant and secure workplace environment. Support to Member States is provided through:
- the exchange of experience between different countries and common actions
- the establishment of the minimum requirements on working conditions and health and safety at work, to be applied all over the European Union
Criteria for quality of work and employment
In order to achieve sustainable working conditions, it is important to determine the main characteristics of a favourable working environment and thus the criteria for the quality of working conditions.
The European Foundation for the Improvement of Living and Working Conditions (Eurofound) in Dublin, is an EU agency that provides information, advice and expertise on, as the name implies, living and working conditions. This agency has established several criteria for job and employment quality, which include:
- health and well-being at the workplace – this is a vital criteria, since good working conditions suppose the prevention of health problems at the work place, decreasing the exposure to risk and improving work organisation
- reconciliation of working and non-working life – citizens should be given the chance to find a balance between the time spent at work and at leisure
- skills development – a quality job is one that gives possibilities for training, improvement and career opportunities
The work of Eurofound contributes to the planning and design of better living and working conditions in Europe.
Health and safety at work
The European Commission has undertaken a wide scope of activities to promote a healthy working environment in the EU Member States. Amongst others, it developed a Community Strategy for Health and Safety at Work for the period 2021-2027. This strategy was set up with the help of national authorities, social partners and NGOs. It addresses the changing needs in worker’s protection brought by the digital and green transitions, new forms of work and the COVID-19 pandemic. At the same time, the framework will continue to address traditional occupational safety and health risks, such as risks of accidents at work or exposure to hazardous chemicals.
The Community policy on health and safety at work aims at a long-lasting improvement of well-being of EU workers. It takes into account the physical, moral and social dimensions of working conditions, as well as the new challenges brought up by the enlargement of the European Union towards countries from Central and Eastern Europe. The introduction of EU standards for health and safety at the workplace, has contributed a lot to the improvement of the situation of workers in these countries.
Improving working conditions by setting minimum requirements common to all EU countries
Improving living and working conditions in the EU Member States depends largely on the establishment of common labour standards. EU labour laws and regulations have set the minimum requirements for a sustainable working environment and are now applied in all Member States. The improvement of these standards has strengthened workers’ rights and is one of the main achievements of the EU’s social policy.
The importance of transparency and mutual recognition of diplomas as a crucial complement to the free movement of workers
The possibility of obtaining recognition of one’s qualifications and competences can play a vital role in the decision to take up work in another EU country. It is therefore necessary to develop a European system that will guarantee the mutual acceptance of professional competences in different Member States. Only such a system will ensure that a lack of recognition of professional qualifications will not become an obstacle to workers’ mobility within the EU.
Main principles for the recognition of professional qualifications in the EU
As a basic principle, any EU citizen should be able to freely practice their profession in any Member State. Unfortunately the practical implementation of this principle is often hindered by national requirements for access to certain professions in the host country.
For the purpose of overcoming these differences, the EU has set up a system for the recognition of professional qualifications. Within the terms of this system, a distinction is made between regulated professions (professions for which certain qualifications are legally required) and professions that are not legally regulated in the host Member State.
Steps towards a transparency of qualifications in Europe
The European Union has taken important steps towards the objective of achieving transparency of qualifications in Europe:
- An increased co-operation in vocational education and training, with the intention to combine all instruments for transparency of certificates and diplomas, in one single, user-friendly tool. This includes, for example, the European CV or Europass Trainings.
- The development of concrete actions in the field of recognition and quality in vocational education and training.
Going beyond the differences in education and training systems throughout the EU
Education and training systems in the EU Member States still show substantial differences. The last enlargements of the EU, with different educational traditions, have further increased this diversity. This calls for a need to set up common rules to guarantee recognition of competences.
In order to overcome this diversity of national qualification standards, educational methods and training structures, the European Commission has put forward a series of instruments, aimed at ensuring better transparency and recognition of qualifications both for academic and professional purposes.
The European Qualifications Framework is a key priority for the European Commission in the process of recognition of professional competences. The main objective of the framework is to create links between the different national qualification systems and guarantee a smooth transfer and recognition of diplomas.
A network of National Academic Recognition Information Centres was established in 1984 at the initiative of the European Commission. The NARICs provide advice on the academic recognition of periods of study abroad. Located in all EU Member States as well as in the countries of the European Economic Area, NARICs play a vital role the process of recognition of qualifications in the EU.
The European Credit Transfer System aims at facilitating the recognition of periods of study abroad. Introduced in 1989, it functions by describing an education programme and attaching credits to its components. It is a key complement to the highly acclaimed student mobility programme Erasmus.
Europass is an instrument for ensuring the transparency of professional skills. It is composed of five standardised documents
- a CV (Curriculum Vitae),
- a cover letter editor,
- certificate supplements,
- diploma supplements, and
- a Europass-Mobility document.
The Europass system makes skills and qualifications clearly and easily understood in the different parts of Europe. In every country of the European Union and the European Economic Area, national Europass centres have been established as the primary contact points for people seeking for information about the Europass system.
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Quality of life – on top of the EU social policy agenda
Favourable living conditions depend on a wide range of factors, such as quality healthcare services, education and training opportunities or good transport facilities, just to name a few aspects affecting citizens’ everyday life and work. The European Union has set for itself the aim to constantly improve the quality of life in all its Member States, and to take into account the new challenges of contemporary Europe, such as socially exclude people or an aging population.
Employment in Europe
Improving employment opportunities in Europe is a key priority for the European Commission. With the prospect of tackling the problem of unemployment and increasing the mobility between jobs and regions, a wide variety of initiatives at EU level are being developed and implemented to support the European Employment strategy. These include the European Employment Services network (EURES) and the EU Skills Panorama.
Health and healthcare in the European Union
Health is a cherished value, influencing people’s daily lives and therefore an important priority for all Europeans. A healthy environment is crucial for our individual and professional development, and EU citizens are ever more demanding about health and safety at work and the provision of high quality healthcare services. They require quick and easy access to medical treatment when travelling across the European Union. EU health policies are aimed at responding to these needs.
The European Commission has developed a coordinated approach to health policy, putting into practice a series of initiatives that complement the actions of national public authorities. The Union’s common actions and objectives are included in EU health programmes and strategies.
The current EU4Health Programme (2021-2027) is the EU’s ambitious response to COVID-19. The pandemic has a major impact on patients, medical and healthcare staff, and health systems in Europe. The new EU4Health programme will go beyond crisis response to address healthcare systems’ resilience.
EU4Health, established by Regulation (EU) 2021/522, will provide funding to eligible entities, health organisations and NGOs from EU countries, or non-EU countries associated to the programme.
With EU4Health, the EU will invest €5.3 billion in current prices in actions with an EU added value, complementing EU countries’ policies and pursuing one or several of EU4Health´s objectives:
- To improve and foster health in the Union
- disease prevention & health promotion
- international health initiatives & cooperation
- To tackle cross-border health threats
- prevention, preparedness & response to cross-border health threats
- complementing national stockpiling of essential crisis-relevant products
- establishing a reserve of medical, healthcare & support staff
- To improve medicinal products, medical devices and crisis-relevant products
- making medicinal products, medical devices and crisis-relevant products available and affordable
- To strengthen health systems, their resilience and resource efficiency
- strengthening health data, digital tools & services, digital transformation of healthcare
- improving access to healthcare
- developing and implementing EU health legislation and evidence-based decision making
- integrated work among national health systems
Education in the EU
Education in Europe has both deep roots and great diversity. Already in 1976, education ministers decided to set up an information network to better understand educational policies and systems in the then nine-nation European Community. This reflected the principle that the particular character of an educational system in any one Member State ought to be fully respected, while coordinated interaction between education, training and employment systems should be improved. Eurydice, the information network on education in Europe, was formally launched in 1980.
In 1986, attention turned from information exchanges to student exchanges with the launch of the Erasmus programme, now grown into the Erasmus+programme, often cited as one of the most successful initiatives of the EU.
Transport in the EU
Transport was one of the first common policies of the then European Community. Since 1958, when the Treaty of Rome entered into force, the EU’s transport policy has focused on removing border obstacles between Member States, thereby enabling people and goods to move quickly, efficiently and cheaply.
This principle is closely connected to the EU’s central goal of a dynamic economy and cohesive society. The transport sector generates 10% of EU wealth measured by gross domestic product (GDP), equivalent to about one trillion Euros a year. It also provides more than ten million jobs.
The Schengen area
The Schengen Convention, in effect since March 1995, abolished border controls within the area of the signatory States and created a single external frontier, where checks have to be carried out in accordance with a common set of rules.
Today, the Schengen Area encompasses most EU countries, except for Bulgaria, Croatia, Cyprus, Ireland and Romania. However, Bulgaria, Croatia and Romania are currently in the process of joining the Schengen Area and already applying the Schengen acquis to a large extent. Additionally, also the non-EU States Iceland, Norway, Switzerland and Liechtenstein have joined the Schengen Area.
Air transport
The creation of a single European market in air transport has meant lower fares and a wider choice of carriers and services for passengers. The EU has also created a set of rights to ensure air passengers are treated fairly.
As an air passenger, you have certain rights when it comes to information about flights and reservations, damage to baggage, delays and cancellations, denied boarding, compensation in the case of accident or difficulties with package holidays. These rights apply to scheduled and chartered flights, both domestic and international, from an EU airport or to an EU airport from one outside the EU, when operated by an EU airline.
Over the last 25 years the Commission has been very active in proposing restructuring the European rail transport market and in order to strengthen the position of railways vis-à-vis other transport modes. The Commission's efforts have concentrated on three major areas which are all crucial for developing a strong and competitive rail transport industry:
- opening the rail transport market to competition,
- improving the interoperability and safety of national networks and
- developing rail transport infrastructure.
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