The European single market crisis Essay Example | Topics and Well Written Essays - 4000 words

The European single market crisis - Essay Example This essay entails of the factors that the Europe focuses to use in making positive changes stimulate economic growth. It outlines the various approaches that the country seeks to use in economic recovery process, asserting relative data sources and the theoretical perspective on the data’s view. The country’s policies propelled tremendous economic growth since the year 2009, with a relative increase in GDP. The highest marginal implication on the GDP was an overall increase by 3% throughout the years of 2009-2011. This was possible despite the many challenges that the state suffered after implementing the single market, which affected economic integrations. B Balassa encouraged the implementation of single markets with arguments that it would help the country achieve monetary union in the globe. They argued that single markets would help eliminate most of the barriers though this was not possible with the free movement of goods, services, people, and even capital (Bald win and Wyplosz, 2009: 256). As the European states aim at improving on their financial capacities, some of the main objectives laid down help in strategizing plans for the progress of the economy (Nello, 2009: 219). The stability of the euro is necessary to help build confidence to other states in trade transactions. The issue of maintaining the tax rates for enabling the prices of commodities to suit the consumer financial ability. Tax increase results to an increase in production costs and thereby increasing the commodities cost. This in return increases the living costs and demands for increases in salaries by the consumers. Another issue lies on creating an internal market for local commodities by laying import regulations within the region. This helps solve the cross border conflicts and increases efficiency of financial institutions between the regions (Piggott and Cook, 2006: 76). The crisis in the formation of single markets Through the integration of European countries, af ter periods of World War II between America and Europe has helped calm the economic crisis. Many economic treaties enacted helped improve on economic performance and to strengthen competition between the regions to help increase the quality competence of products from the two regions (Craig and Elliott, 2009: 209). The European Union also passed several acts in their agreement and gave directions on financial expenditures towards developing the rural areas and developing reliable energy production, which would majorly boost on the emergence of new industries increasing the economic activities in the region. Through the cohesion between the two regions, the internal market developed competence in the global market and thereby this ensured that the economy was strong even after the crisis (Cini and Borraga, 2010: 164). The European single market was at efforts to pursue single currency for all the member states and aimed at getting involved in international trades as one joint unit. T hey believed that such effort would help increase the trade area, reduce operational costs, and implement similar economic policies across al the union states. They had similar tariffs and quota systems with outside states but free trade within member states. They faced challenges on standardization of qualities and regulations and specifications for production. The lag by the union states in