The Freedoms Of Movement Of The Single Market

The European Single Market implies not only the free movement of goods and services, but also the free movement of production factors (the capital and the labor force).The liberalization of goods and services and of production factors movement has determined, on the short term, the appearance of some structural and specialization adjustment processes within the member countries, and on the long term a more efficient allocation of the production factors, an improvement of labor productivity and positive effects in the field of labor force employment. According to the neoclassical theory, the labor force migrates from regions with low wages and low profit rates, to regions having high wages and high profit rate. Thus, the production factors are used in a more productive way. According to this theory, the factors mobility contributes to the equalization of the wages and to a better factors allocation. Issues such as structural funds, persons' freedom of movement, convergence could be turned into advantages by any member state, and especially by a new member state. From an economic perspective, the causes of labor force mobility, as a production factor, are: the price differences (wage differences, profit rates differences, interest rates differences) - according to neoclassical theory; income difference, meaning saving excess or insufficiency for the capital, according to Keynes approach; differences in the level of economic development, determining unequal changes, according to the monetarists. Romania has become a European Union member at January, the 1st, 2007. The accession road has been a long one, full of challenges, issues, but also satisfactions. The 1st of January has not been the end of a process, but the beginning of a new period for Romania's present history. The author will try to emphasize the freedoms of movement of the Single Market. The humanitarian reasons also determine the migration of the population; these are the refugees, the asylum solicitors, the persons having temporary protection or persons accepted for other humanitarian reasons.