The boundaries of the internal market in- and outside the EU

This chapter addresses the question of the outer limits of the European Union’s (EU) internal market and its significance in the Union's foreign policy, especially in relations with the EU’s neighbouring countries. The internal market forms the core of European integration and has gained increased importance in the external context. Through an analysis of the relevance of the internal market within the EU as well as in the Union's policies towards the neighbourhood countries, the chapter argues that the extension of the boundaries of the internal market forms a highly significant part of the Union's external policy consolidating its leading role in the region. The expansion of the internal market offers third countries a strong opportunity to identify themselves as belonging to the wider European community and ensures a long-term commitment to the European integration project. While the formal, physical and administrative borders of the EU remain, the boundaries of the internal market continue to be blurred and the European integration project broadened and deepened for the benefit of security and prosperity in the region.