A common market allows free movement of goods, services, labor, and capital. An economic union adds harmonized fiscal, monetary, and social policies — and typically a shared currency — requiring the deepest level of policy coordination.
Common Market vs Economic Union A common market and an economic union are the two highest stages of economic integration that have been achieved in practice. Both allow free movement of goods, services, labor, and capital, but an economic union adds harmonized fiscal, monetary, and social policies — and typically a shared currency. Understanding the distinction is essential for analyzing the EU's trajectory and the theoretical limits of regional integration . Key Takeaways Both allow free moveme