ABSTRACT
The main objective of the European Union (EU) is to enhance the allocational efficiency of the economies of the member states by removing barriers to the movement of goods, services and production factors. Moreover policies have been agreed upon to make the European market, once created, function properly. Many of the instruments of structural policies tend to affect the allocative efficiency of the Union economy. A set of independent national competition policies is unlikely to be sufficient for establishing a good competition regime in integration areas. The tax policy of the EU has followed the general principles indicated in the previous section. Indeed the EU tax policy has been designed and developed so as to serve the objectives of other policy fields, notably an efficient allocation. The harmonisation of the taxes on the income of the production factor labour has not raised much interest in the EU up to now.
