REGULATIONS

LEGAL FRAMEWORK
1. The Integrity and Sustainability of EU Citizenship
Cambien states that the right to free movement is only enjoyed by Union citizens and can only be
invoked by Union citizens once they leave their member state and move to another member state.
On the other hand, if the Union citizens are self-sufficient then only they can reside in another
member state for longer period. Union law indirectly influences the nationality rules of member
state through the provision of Union citizenship.
2. The Recent Evolution of EU Citizenship Law
Kochenov asserts that the European Union is involved in a fundamental reinterpretation of the
border between the scopes of the member state and EU law. Extending the scope of EU law
expanded the circumstances in which the legal orders of the member states and EU law
overlapped. The interaction between the legal orders of the member states and EU law amplified
the significance of the rules governing the reach of EU laws scope jurisdiction. EU citizenship
case law has failed to introduce more coherence into the structure of European.
3. The Relation between EU Citizenship and EU Fundamental Rights
Shaw states that EU law involves all the other state members resident of their territory have the
right to vote for the European Parliament on the same basis as nationals. The Parliament has
played a significant role within the European Unions legislative process for many legislative
acts, and its role can be associated to the task of ensuring an effective political democracy in the
EU.

OPENNESS OF EUROPEAN UNION IN TERM OF TRADE

European Union is able to achieve a global position by acting together and having one voice
instead of 28 different trade strategies. EU is also in key position in terms of global trade. It is the
biggest player on the global trading scene and is also known as a good region for one to do
business. EU trade policy is an opportunity for economic growth as they seek to create growth
and jobs by increasing the opportunities for trade and investment with the rest of the world.
Some reasons why European Union is an attractive market to do business with:
There are more than 500 million consumers who are in search of quality goods.
It is the worlds largest single market with transparent rules and regulations
It has a secure legal investment framework that is one of the most open frame work in the
world.
They are the most open market to developing countries in the world.

European Union position in Global Market:

EU has the largest economy in the world with GDP per head of 25000 for its 500
million consumers.
EU is the worlds largest trader of manufactured goods and services and is most open to
developing countries. (Refer Fig.)
EU ranks 1st in both inbound and outbound international investments
The average applied tariff for goods imported into the EU is very low. More than 70% of
imports enter the EU at zero or reduced tariffs.
Together, the European Union's 28 members account for 16% of world imports and
exports.

Fig: Trade in Goods and Services 2013

TRADE POLICIES OF EUROPEAN UNION

EU trade policy is working to create a global system for fair and open trade, to open up markets
with key partner countries, and to make sure that everyone plays by the rules. The European
Commission is intending a new trade and investment strategy for the European Union namely
Trade for All. The novel approach forms on Europe's exceptional trade track record. Presently,
over 30 million jobs depend on exports outside the European Union. Henceforth, 90.0% of future
global growth will take place outside Europe's borders.
European Union is coming up with novel policies including Transatlantic Trade and Investment
Partnership (TTIP), Comprehensive Economic and Trade Agreement (CETA), and Trade in
Services Agreement (TISA) which will help the EU members to open up for trading.

Transatlantic Trade and Investment Partnership (TTIP): The EU is negotiating a trade

and investment deal with the US. This will help for the opening up the US to EU firms while

setting new rules to make it easier & fairer to import, export, and to invest overseas. TTIP
could also help in generating employment and growth across EU.

Comprehensive Economic and Trade Agreement (CETA): It is a freshly negotiated EUCanada treaty. As soon as applied, it will offer EU firms better and more business prospects
in Canada and support jobs in Europe. Moreover, it will end limitations on access to public
contracts, offer foreseeable conditions for investors, help stop illegal copying of EU
traditional and innovative products, eliminate customs duties, and open-up the services
market. The agreement will completely maintain Europe's standards in areas including
workers rights and food safety.

Trade in Services Agreement (TISA):It is currently being negotiated by 23 members of the

WTO including the EU. Altogether, the participating nations account for 70.0% of world
trade in services. TISA focuses at opening up of markets and refining rules in areas including
financial services, maritime transport, e-commerce, licensing, and telecoms.

Figure: EU28 merchandise trade with Extra-EU28

TAXATION POLICY OF EUROPEAN UNION

There are three major types of taxes including indirect tax, direct tax, and social contribution.
With the breakdown of tax receipts by types of tax, the pattern at EU level is one of roughly
equal thirds.

Fig: Tax Revenues

The breakdown by economic function i.e. consumption, labor, and capital shows that at EU level,
taxation of labor accounts for the maximum of tax receipts, followed by taxation of consumption
and taxation of capital.

Fig: Distribution of Total Tax

Taxes can be introduced for explicit purposes, e.g. health or environmental objectives, which also
bring in tax revenues. Several other taxes which contribute towards the revenue include taxes
related to the environment, health related taxes, and taxes related to financial services.

INTERNAL REGULATION FOR SETTING UP A BUSINESS

There are certain rules and regulations that must be followed in order to start a new company or
expand business in another EU country.
As an EU citizen one is entitled to:
Either set up his own business (even as sole trader) in any EU country, or
Set up a subsidiary of an already existing EU based business that is registered in one EU
country.
One must think before starting a business as it is very cumbersome, expensive and the timeconsuming administrative procedures mostly discourages the potential entrepreneurs from setting

up the business. However, the EU commissions objective is to reduce this entire burden and to
encourage people to become entrepreneurs and create new jobs in order to improve the economic
performance.
Even though the EU business environment has improved, progress across different countries
remain uneven. In 2015, the average time to start a private industry in EU was 3.4 days and the
cost was 315.
There are certain rules that EU follows in case of providing employment to an individual and all
are mentioned on the first day of the employment.

EU FUNDING PROGRAMMES
European Commission or its executive agencies grants direct funding to projects with specific
objectives related to environment, research, training, etc. Indirect funding is from national and
local intermediaries. However, EU doesnt finance projects up to 100%. They even help in
projects to break even financially. It can be said that there is full support from EU commission to
the people who needs fund for the projects.

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