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Functioning of the internal market and competition

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Description

This area is concerned with the likely impacts of policy measures on the pursuit of the economic objective of achieving fair and free competition within the European Union. This market condition facilitates the movement and efficient allocation of production factors and ensures an adequate share of economic benefits of free and fair competition accrue to consumers through the creation of normative and regulatory conditions for the improvement of market conditions (ample consumer choice, stabilisation of low prices...)

The well-functioning of the market under conditions of free competition, stimulates innovation and boosts therefore the competitiveness of European firms on the international markets. Free competition within the European Union can be hindered by monopolistic behaviours, technical barriers to trade and business establishment (Question 2). Therefore, EU policies most directly affecting competition include: Competition policy, Product law harmonisation policy (removing technical barriers to trade) and Consumer policy (protection of health, safety and economic interests of consumers, protecting the consumers´ right to information and education).

The Impact Assessment Guidelines of 2005 have been reformed in 2009. Regarding the key questions of the area “Internal Market and Competition” the question has been divided into two questions.

This impact area is further specified by the taxonomy terms: EU Wide Movement of Goods, Services, Capital and Workers and Level of Competition within the EU Internal Market.

Relevant Policies

The EU adopted a joint recovery plan after the economic crisis has taken place. The aim is to stimulate demand though public investment, to better regulate the financial sector and to create sustainable jobs.
For more information on the treaty provisions and relevant policies adopted by the community, please refer to http://europa.eu/pol/singl/index_en.htm or http://europa.eu/pol/comp/index_en.htm
This text is for information only and is not designed to interpret or replace any reference documents.

Legal Basis for the Commission to Act

Treaty Establishing the European Community: Art. 2c, 14, 18, 23 and 24, Title III, Title IV, Art.94 and 95 and Art. 81 to 89
“Promote economic and social progress (…) to achieve balanced and sustainable development, in particular through the creation of an area without internal frontiers, through the strengthening of economic and social cohesion (…)” is a key task of the European Union (Art. 2 EU). To reach this goal the European Union has established the European Court of Justice where the commission´s extensive powers to investigate and halt violations of the EU competition rules are subject to judicial review. On the one hand the European Union tries to hinder monopolies and over market barriers but in the other hand the European Commission finances a so called “state aid”. “State aid” is the assistance EU governments make available to business in forms of loans, grants, tax breaks, goods and services provided at preferential rates. Another objective of the European Union in the Area competition and internal market is the protection of its Single markets, which chiefly relies on competition and regulatory authorities to guarantee the free movement of goods and services. The free movement of people is guaranteed under the Schengen agreement and the establishing of the Europol, the European police force.

Web Resources

  • Overview of European Union Activities: Competition

http://europa.eu/pol/comp/index_en.htm

  • Activities of the European Union: Competition

http://europa.eu/pol/comp/index_en.htm

  • European Commission: DG Competition

http://ec.europa.eu/competition/index_en.html

  • Summaries of EU Legislation

http://europa.eu/legislation_summaries/internal_market/index_en.htm

  • Recent case law of the Court of Justice and the Court of First Instance

http://curia.europa.eu/jurisp/cgi-bin/form.pl?lang=en&Submit=Rechercher&docrequire=alldocs&numaff=&datefs=&datefe=&nomusuel=&domaine=CONC&mots=&resmax=100

Contact

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Related Terms

EU Wide Movement of Goods, Services, Capital and Workers

Level of Competition within the EU Internal Market

Publications and applications

Titel Type of practice Updated date
Electronic Public Procurement Impact Assessment 2014-02-11 19:37
European Research for Impact Assessment Tools Publication 2014-04-17 14:41
FP7 (2007-2013) Impact Assessment 2014-02-12 20:13
IA Report: Access of third-country goods and services to the Union's internal market in public procurement and procedures supporting negotiations on access of Union goods and services to the public procurement markets of third countries (2012) Application of a Model or Method 2013-07-26 17:08
IA Report: Building the Single Market for Green Products: Facilitating better information on the environmental performance of products and organisations (2013) Application of a Model or Method 2013-07-24 12:36
IA Report: Commission Recommendation on access to and preservation of scientific information (2012) Application of a Model or Method 2013-07-25 17:36
IA Report: Communication concerning the European Union Strategy for the Baltic Sea Region Application of a Model or Method 2013-09-03 12:08
IA Report: Communication on a strategy for the internalisation of external costs Example of an IA Activity 2013-09-03 16:13
IA Report: Communication on sustainable coal Application of a Model or Method 2013-09-03 20:22
IA Report: Criminal sanctions for insider dealing and market manipulation (2011) Application of a Model or Method 2013-07-29 16:51
IA Report: Decision of the European Parliament and of the Council concerning the seventh framework programme of the European Community for research, technological development and demonstration activities (2007-2013) Application of a Model or Method 2013-09-05 12:05
IA Report: Directive on the comparability of fees related to payment accounts, payment account switching and access to payment accounts with basic features (2013) Application of a Model or Method 2013-07-24 15:57
IA Report: Insider dealing and market manipulation / Market abuse (2011) Application of a Model or Method 2013-07-29 16:46
IA Report: Internal market for electricity and gas Application of a Model or Method 2013-09-03 21:53
IA Report: Markets in financial instruments (2011) Application of a Model or Method 2013-07-29 17:08
IA Report: Package of Implementation measures for the EU's objectives on climate change and renewable energy for 2020 Application of a Model or Method 2013-09-03 19:42
IA Report: Periodic roadworthiness tests for motor vehicles and their trailers (2012) Application of a Model or Method 2013-07-26 17:40
IA Report: Posting of workers in the framework of the provision of services (2012) Application of a Model or Method 2013-07-25 17:46
IA Report: Proposal for a Directive amending Directive 2003/96/EC restructuring the Community framework for the taxation of energy products and electricity Application of a Model or Method 2013-09-03 21:54
IA Report: Proposal for a Directive imposing an obligation on Member States to maintain minimum stocks of crude oil and/or petroleum products Application of a Model or Method 2013-09-03 21:55
IA Report: Proposal for a Directive laying down the framework for the deployment of Intelligent Transport Systems (ITS) in the field of road transport and for interfaces with other transport modes Application of a Model or Method 2013-09-03 19:20
IA Report: Proposal for a Directive of the European Parliament and of the Council amending Council Directives 78/660/EEC and 83/349/EEC as regards disclosure of non-financial and diversity information by certain large companies and groups (2013) Application of a Model or Method 2013-07-24 15:45
IA Report: Proposal for a Directive of the European Parliament and of the Council on public procurement (2011) Application of a Model or Method 2013-07-29 16:18
IA Report: Proposal for a Directive on reporting formalities for ships arriving in or departing from ports of Member States of the Community and repealing Directive 2002/6/EC Application of a Model or Method 2013-09-02 15:36
IA Report: Proposal for a Regulation amending Regulation (EC) No 1692/2006 establishing the second 'Marco Polo' programme for the granting of Community financial assistance to improve the environmental performance of the freight transport system Application of a Model or Method 2013-09-03 18:43
IA Report: Proposal for a Regulation concerning a European rail network for competitive freight Application of a Model or Method 2013-09-03 19:15
IA Report: Proposal for a Regulation establishing the Connecting Europe Facility (2011) Application of a Model or Method 2013-07-30 12:45
IA Report: Proposal for a Regulation on a Common European Sales Law (2011) Application of a Model or Method 2013-07-29 23:20
IA Report: Proposal for a Regulation on electronic identification and trust services for electronic transactions in the internal market (2012) Application of a Model or Method 2013-07-25 17:41
IA Report: Proposal for a Regulation on prudential requirements for credit institutions and investement firms (2011) Application of a Model or Method 2013-07-29 22:50
IA Report: Proposal for a Regulation setting emission performance standards for new light commercial vehicles as part of the Community’s integrated approach to reduce CO2 emissions from light-duty vehicles Application of a Model or Method 2013-09-03 11:54
IA Report: Proposal for a Regulation setting up the Fuel Cells and Hydrogen Joint Undertaking Application of a Model or Method 2013-09-03 22:49
IA Report: Recording equipment in road transport (2011) Application of a Model or Method 2013-07-30 01:02
IA Report: Regulation on amending Regulation (EC)1775/2005 on conditions for access to the natural gas transmission networks Application of a Model or Method 2013-09-03 21:56
IA Report: Regulation on type-approval of motor vehicles and engines with respect to emissions from heavy duty vehicles (EURO VI) and on access to vehicle repair and maintenance information Application of a Model or Method 2013-09-03 22:15
IA Report: Regulation setting emission performance standards for new passenger cars as part of the Community's integrated approach to reduce CO2 emissions from light-duty vehicles Application of a Model or Method 2013-09-03 22:43
IA Report: Renewable Energy Road Map Application of a Model or Method 2013-09-03 20:22
IA Report: Report on sustainability requirements for the use of solid and gaseous biomass sources in electricity, heating and cooling Application of a Model or Method 2013-08-28 15:56
IA Report: Simplifying the transfer of motor vehicles registered in another Member State within the Single Market (2012) Application of a Model or Method 2013-07-25 19:02
IA Report: Type-approval of motor vehicles with respect to emissions and on access to vehicle repair information Application of a Model or Method 2013-09-05 11:23
IA Report: Union guidelines for the development of the Trans-European Transport Network (2011) Application of a Model or Method 2013-07-30 00:50
The Policy-Relevancy of Impact Assessment Tools: Evaluating Nine Years of European Research Funding Publication 2014-07-09 16:32

Content for this term

Title Type Updated date
E3ME Model 2014-04-23 15:36
Functioning of the internal market and competition Impact Area 2013-11-01 12:25
Jacob, Klaus Expert 2013-03-22 15:39