Freedoms of the EU’s Single Market

The Single Market's fundamental freedoms under EU law are the four basic rights that guarantee the free movement of goods, services, capital, and persons across the European Union. They are core principles of the EU and are essential for building an integrated, competitive European economy. These freedoms are laid out mainly in the Treaty on the Functioning of the European Union (TFEU).

1. Free movement of goods

Goods can move across Member States without customs duties, quantitative restrictions, or barriers. Based on Articles 28-37 TFEU, customs duties and charges with equivalent effect, quantitative restrictions (quotas) and measures having equivalent effect (Dassonville formula) are prohibited. Some exceptions are allowed for reasons of public health, public policy, and environmental protection (Article 36 TFEU).

2. Free movement of persons

EU citizens have the right to move, reside, and work freely in another Member State. Based on Articles 45-55 TFEU, workers, self-employed persons, students, as well as retired persons have the right to take up employment without discrimination, the right of family members to accompany or join, and social rights linked to employment (e.g., access to social benefits).

The freedom of movement of persons is subject to certain restrictions for reasons of public security or public health.

3. Freedom to provide services

Based on Articles 56-62 TFEU, the freedom to provide services gives enterprises and individuals the right to offer and receive services across borders without unjustified restrictions. This covers for example professional services, financial services, tourism and hospitality. It also includes the right to temporarily provide services without being established in the host Member State.

4. Free movement of capital

The freedom of capital provides that capital can move and payments be made freely between Member States as well as between the EU and third countries. Restrictions on direct investments (like buying real estate or companies), portfolio investments (stocks, bonds), and cross-border loans and payments are prohibited.

Some exceptions exist for taxation, crime prevention, and financial stability.

They four fundamental freedoms are the legal backbone of the EU Single Market. They promote European integration, encourage economic growth, cross-border investment, innovation, and consumer choice, as well as strengthen individual rights across borders.

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