Analyse the attempts by the EU to allievate the inherent problems of Essay

Analyse the attempts by the EU to allievate the inherent problems of establishing a case-by-case market within the Financial serve - Essay ExampleAs a result, the integration process had to take a much heightened effort to ensure it was fruitful. The Commission published a washcloth Paper in 1985, whereby the enabling instrument was the Single European toy (the SEA). The aim of this Act was to remove the non-tariff barriers and to encourage free movement of capital and lug by 1993. It was also agreed that discrimination by all means should cease (House of Lords, 2008, p. 33). The non-tariff barriers Although the European Commission was hell bent on establishing a single market, not much had been achieved by 1980s. Furthermore, by the mid - 1980s, most of the aims of the Rome treaty had not been attained despite the first stage of integration having been completed. Actually, non-tariff barriers were account to have increased between 1975 and 1985 despite all these efforts. It w as thereby realized that a strategy was needed to strengthen the integration among elements (Canoy, Liddle and Smith, n.d, p. 3). The Single European Act had, in mind, three major types of non-tariff obstacles to factor mobility and trade, which inspired its objectives. The first was the physical barriers, whose formation was as a result of controls and customs formalities (House of Lords, 2008, p. 29). Its aim include moving administrative checks away from the borders and ensuring their processes were simplified, development of a common policy on transport, as well as removal of all internal controls and frontiers on capital and people. The second type was technical barriers, which encompasses the various technical product specifications. Its purpose was to harmonize regulations or to create mutual identification of standards of all(prenominal) member country to institute the correspondence of qualifications and to dismantle exchange controls. The third type was fiscal barriers, which was characterized by a very complex process of tax order harmonization particularly in relation to the corporation and indirect taxes. Also, the SEA placed emphasis on the suitability of allowing free trade on each member countrys public purchasing, which encompassed incorporation of social charter and application of competition. Nevertheless, there was no reliable arrangement for tackling the differences in respect to the outside(a) trade policy and a policy on subsidies was not clearly spelt out. It was also not clear, how harmonization could lead to mutual recognition in regards to the achievement of the single market (Eichacker and Amherst, n.d., p. 4). The banking industry The banking industry, among other financial sectors, was greatly regulated and it was characterized by diversified regulatory practices. Essentially, barriers to the supply of overseas services presented more problems than location-related barriers. In some countries, financial institution and non-res ident banks were restricted in their rights to do business with residents, by stringent laws and regulations (House of Lords, 2008, p. 36). The first Banking Directive instructed members to set up systems for supervise and authorization of banks as well as other credit institutions. This directive, also, led to the requirement that these financial institutions should get licensed to be recognized. In addition, licensing accorded the financial