The European Union (EU) is an economic and political coming together of European countries (Cini, 2003). It is not a federation like the United States of America, nor does it operate as an international organization for political or military cooperation, like the United Nations or the North Atlantic Treaty Organization (NATO). Instead, the (sovereign) member nations have decided to pool their sovereignty and delegate some of their decision-making powers to common EU institutions, which act in the interests of all member states. This way, the EU member countries have gained economic and political power that they would be unlikely to achieve individually. In 2004, approximately 380 million people lived in the EU. The EU's large size and the shift in decision-making power from the national level to more central EU institutions have also presented some obstacles to furthering European integration, most recently in the form of French and Dutch voters failing to approve of the proposed EU constitution (Nelsen & Stubbs, 2003).
Freedom of Establishment
This is one of the basic provisions of EU and fundamentally devotes nationals of one Member State on the territory of another Member State the right to
? Take up and chase undertakings as self engaged persons
? Set up and organise businesses under the situation prepared down for the nationals of the regulation of the homeland where such establishment is effected.
? Nationals of any Member State established in the territory of any Member State may set up parts, bureaus and subsidiaries. (Jones, 2001)
The primary of flexibility of establishment is far coming to, and in fulfilling this objective the EU has arrive out with a gigantic raft of legislation, especially with consider to the mutual acknowledgement of requirements accomplished in other Member States (Cini, 2003). Over the years, several directives have been presented identifying the mutual acknowledgement requirements. In the 1970s and 80s this took the pattern of comprehensive harmonization influencing specific professions. However, in 1989, the Mutual Recognition Directive was passed. This associated to diplomas handed out at higher learning level.
Mutual acknowledgement of diplomas was farther expanded by Directive 92/51/EEC applicable to diplomas and alike qualifications. Under these Directives, persons may still have to attempt move checks, especially for expert practice. However, while the owner Member State is not needed to allocate authorization to the applicant to chase their occupation, the competent administration may not deny consent only on the surrounds of insufficient qualifications.