Competition Policy and a Single European Market Research Paper

Competition Policy and a Single European Market - Research Paper Example Being a member of the European EMU (Economic and Monetary Union) may be defined on the basis of four aspects. First, the members are defined by a single currency. Secondly, they not only enjoy a common monetary policy, but they also share similar interest rates. Then there is the issue of budget deficit limits, which in this case has been set at 3 per cent of a member country’s GDP. Finally, members enjoy capital; market integration. Talk has been rife that CEECs (Central and Eastern European Countries) may enlist for membership of EMU. However, there are a few elements that hinder such a move. These countries are poor, with low wage and income earner. They have low populations, and their economy may at best be said to be transitory. In addition, they are also industrially different, relative to the EMU countries. In the event that the CEECs become EMU members. Chances are that price, wage and cost transparency of industrial products may be experienced (Oudenaren 2005). In add ition, there will no longer be a market barrier that exists between EMU members and non-EMU members (Ackerman 2006). This in effect will lead to an expanded market to East and Central Europe. Without a doubt, the idea of CEECs joining EMU shall have far-reaching repercussions. For starters, we might very well witness a rise in migration to west EU, because of the availability of better-paying jobs and living conditions. On the other hand, the risk of doing business could as well increase, because of the industrial differences in doing business between, on the one hand, the CEECs and on the other hand, the countries in west EU (Oudenaren 2005).