Free Movement of Capital in Europe
Description of Free movement of capital
The Concise Encyclopedia of the European Union describes free movement of capital in the following terms: [1] One of the four freedoms which laid the foundations of the Common Market, the free movement of capital between member states was not fully accomplished until nearly 40 years after the signing of the Treaty of Rome in 1957. Sporadic upheavals in foreign exchange markets, combined with variations in the strength of individual EU economies, served as reasons for delay in the case of Spain, Portugal, Greece and Ireland and for allowing the exceptional use of protective measures in the event of a financial emergency. The 1992 Maastricht Treaty, however, set Europe on the path to EMU, a goal incompatible with any remaining restrictions; and the resultant fiscal discipline imposed on member states aspiring to join the single currency enabled them to enjoy freedom of capital movement not only within the Community but also in their external economic relations.
Resources
Notas y References
- Based on the book “A Concise Encyclopedia of the European Union from Aachen to Zollverein”, by Rodney Leach (Profile Books; London)