Germany in Europe

A Single European Market

In addition to its central geographic location, membership in the Single European Market makes Germany an ideal starting point for distribution channels throughout the entire continent. Since the Treaty of Rome was signed in 1957, the European Union and its predecessor organizations removed many trade barriers within their borders. The Single European Market is based on the following four fundamental freedoms:

• The free movement of goods guarantees that there are no trade barriers for goods within the European Union. Customs duties between the EU member states were abolished. The same applies to all charges or regulations that indirectly distinguish between national goods and those imported from another member state. More information on the common import requirements of the European Union is available in our section on duties and import regulations in Germany.
• Similar to the free movement of goods, the freedom to provide services assures that businesses may provide their services across inner European borders freely. One additional measure to remove market barriers was the European wide introduction of Points of Single Contact as provided by the EU services directive. These act as one-stop-shops that facilitate national administrative requirements for providing services within the EU. The German Points of Single Contact may be accessed through our section ''EU service market''.
• The freedom of personal movement and residence, allows EU citizens and companies alike to settle down, start business or take up employment in any member state. Information on employment in Germany is available in our Section ''Work''. Further support with establishing a business branch is provided by Germany Trade and Invest.
• Due to the free movement of capital, money may be transferred in any amount from one EU member state to another without national surcharges. Going beyond this basic rule, 16 member states introduced the Euro as a common currency. Further information on the common European currency is available in the following chapter.

These freedoms are backed by transnational legislation that harmonizes the legal environment, by creating both regulations that apply directly to all member states and directives which are to be applied to national law based on its traditions.

The Single European Market extends even beyond the borders of the European Union to include three member states of the European Free Trade Association (EFTA), Iceland, Liechtenstein and Norway. These countries have incorporated much of the EU legislation in their national legislation. As a result, they share almost the same legal framework, rights and obligations as EU member states.