1992: The Case of Financial Services

By the end of 1992 the European Community (EC) intends to create a single internal market in goods, services, labor and capital. Of all the internal markets to be created by the end of 1992, the single internal market in financial services may be the most interesting. This paper considers three aspects of the single market in financial services: regulatory harmonization as a solution to the problems caused by the development of international financial markets; the rules which the EC has adopted and proposed to create the single market in financial services; and the extent to which the single market will encourage competition between regulators.