Free Movement of Capital in Europe
- Benefits and achievements of capital liberalization in Europe on the microeconomic (individuals and firms) as well as macroeconomic level
- Technical and practical types of challenges to this trend of liberalization faced nowadays by governments and firms
- Examination of the extent of success of the free movement of capital in Europe
According to Article 56 of the European Community Treaty of Maastricht, within the framework of the provisions set out in this Chapter, all restrictions on the movement of capital between Member States and between Member States and third countries shall be prohibited. A vital article that directly affects the lives of millions of European firms and individuals yet needs further elaboration in its development and its current application. During the post World War II era, the IMF's Article's of Agreement (1945) entitled governments with the right to control capital flows. This idea continued to exist until in the early 1980s, then some countries, mainly Japan, the UK, the US and Germany started to diverge and slowly liberalize capital flows across their borders.