A single market without internal borders or other regulatory obstacles in which the free movement of goods, services, capital and persons are guaranteed, and in which citizens are free to live, work, study and do business. It encompasses the European Union member states and has been extended to three of the four European Free Trade Association (EFTA) states (Norway, Iceland and Lichtenstein) by the European Economic Area Agreement.

It was formerly known as the common market of the European Community.