ABSTRACT
This chapter explains the background to European integration, the main issues and their relationship to the European business environment. It focuses on the single market, which is considered to be the central element of European economic integration. The European Union (EU) is of growing importance for the daily life of ordinary European citizens. European citizens are free to travel and settle in other EU countries and to find jobs there. The chapter discusses the rationale for economic integration in Europe, including the assumed benefits and costs, from both economic and business points of view. It examines the background to European cooperation, including the political and economic aspects. The European integration movement has it roots in the aftermath of the Second World War. It was most important to prevent new wars in Europe and also to avoid isolation and poverty in European countries, particularly Germany. European integration has been driven by political and economic motives.
