Britain should not expect any compromise on the European Union’s free movement rules if it wants to stay in the single market, the former EU leader Herman Van Rompuy has said, but what is the single market?
The single market in Europe is a type of trade bloc in which most trade barriers have been removed (for goods) with some common policies on product regulation, and freedom of movement of the factors of production (capital and labour) and of enterprise and services.
When the U.K. joined the European Union in 1975, we joined to belong to the Common Market. This is seen as the first stage of a single market. Some trade barriers remain in place, but free movement of goods and services are allowed.
Watch this video to find out how the markets work.