Freedom of movement
It should be easy to shop, travel and move between EU member states. This is one of the fundamental ideas behind EU cooperation. The EU member states therefore cooperate so as to enable the four freedoms within the European single market. The four freedoms are free movement of people, goods, services and capital between EU member states.
About the EU single market
- Free movement applies to goods, services, people and capital, and this is known as the four freedoms.
- Companies can undertake activities throughout the EU.
- Customs tariffs have been removed between the EU member states.
- The member states are not permitted to favour their own countries’ companies over companies from other EU countries.
- People and goods should receive equal treatment regardless of what member state they come from.
Movement for economic growth
EU citizens can move, invest, sell products and offer services throughout the EU. These are examples of ways in which the EU countries should function as a common market with free movement across borders.
Right to work in other countries
Free movement of people means, for example, that all EU citizens have the right to live and work in other member states without requiring a work or residence permit. It should also be possible to buy and sell products without difficulty. Therefore, there are no customs tariffs between EU member states and with the EU's common product safety requirements, the products can be sold in all countries.
Offer services and invest
Companies can work throughout the EU. They can offer services, such as construction work or banking services, in other EU member states. Free movement of capital means, for example, the right to invest or purchase a company in other member states. It is prohibited to limit the amount of money someone wishes to transfer between member states.
Must be able to support oneself
Even though EU citizens have the right to move to other countries, there are certain conditions. An individual must be able to support him/ herself in order to be allowed to stay, and may need sickness insurance. Pensioners can receive their pension in other EU countries and students are permitted to study on the same terms as the country's students.
The EU member states have different social insurance systems
The EU member states have different social insurance systems. This means that parental leave, pensions and child allowances differ from country to country. The EU has adopted provisions on what applies when EU citizens move between member states. The general principle is that people are covered by the rules that apply in the country in which they are working.
Security problems can restrict movement
The EU member states can restrict the freedom of movement if they consider that it may cause problems with regard to public order, security or health. However, these restrictions may not, for example, lead to a country disfavouring other countries’ companies in relation to their own.
Not just EU member states
Free movement of people applies not just to the EU member states but also to Iceland, Liechtenstein and Norway which all belong to the European Economic Area (EEA), as well as Switzerland. This means that the citizens in these countries also have the right to move where they want within the EU. The EU and these countries have reached a special agreement on this.