EC Substantive Law- Oslo University 2007/08

Professor Rosa Greaves

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SEMINARS 8 & 9: THE RIGHT OF ESTABLISHMENT, THE FREEDOM TO PROVIDE SERVICES – Articles 43 & 49 EC Treaty

Reading

Barnard Ch 12

Marenco, “The Notion of Restriction on the Freedom of Establishment and Provision of Services in the case-law of the Court (1991) 11 YEL 111

IThe Right of Establishment

1.Introduction

  • Distinction between the Right of Establishment and the freedom to provide Services
  • Commission v Germany (Insurance cases) Case 205/84 [1986] ECR 3755
  • The “centre of gravity” test: see Gebhard case C-55/94 [1995] ECR I-4165 (annotated in (1996) 33 CMLRev 1073)
  • Services/goods

2.Establishment/Services (Article 43 v Article 49)

  • Right to entry and residence – Directive 73/148 (similar to Directive 68/360 re workers)
  • Right to remain for self-employed – Directive 75/34 (Reg 1251/70)
  • Directive 64/221

3.Freedom of Establishment

  • Direct effect of Article 43 – Reyners v Belgium Case 2/74 [1974] ECR 631

What is establishment? Klopp, Case 107/83 [1984] ECR 2971 (secondary establishment)

4.Exercise of Freedom of Establishment by Legal Persons

Segers, Case 78/85 [1986] ECR 2375

R v Treasury ex p Daily Mail, Case 81/87 [1988] ECR 5483

Centros, Case C-212/97 [1999] ECR I-1459

Uberseering, Case C-208 [2002] ECR I-9919

5.The Issue of Professional Qualifications (common to Establishment & Services)

Read: Pertek, “Free Movement of Professionals and Recognition of Higher Education Diplomas” (1992) 12 YEL 293

  • Vlassopoulou, Case 340/89 [1991] ECR 2357
  • Lawyers
  • Directive 77/249 re provisions of services by lawyers
  • Directive 98/5 home title for lawyer

IIFreedom to Provide Services

Reading

Barnard Ch 13

Article 49 et seq.

1.Introduction

Van Binsbergen, Case 33/74 [1974] ECR 1229

Luisi & Carbonne, Case 286/82 and 26/83 [1984] ECR 377 (personal scope)

Cowan v Le Tresor Public, Case 186/87 [1989] ECR 195

2.Meaning of “Services”

Article 50

“Services shall be considered to be ‘services’ within the meaning of this Treaty where they are normally provided for remuneration, insofar as they are not governed by the provisions relating to freedoms of movement of goods, capital and persons”

Rush Portuguesa, Case C-113/98 [1990] ECR I-1417

Schindler, Case C-275/92 [1995] 1 CMLR 4

Points

(a)remuneration need not come from recipient

Bond van Adverteeders, Case 352/85, [1986] ECR 2085

(b)service provider must have a profit motive

Belgium State v Humbel, Case 263/86 [1988] ECR 5365 (material scope)(contrats with Grogan, below)

(c)Medical Treatment

Luisi & Carbonne (cited above)

SPUC v Grogan, Case C-159/90 [1991] ECR I-4685 (abortion services)

Ex p. Blood [1997] 2 CMLR 591

3.Article 49 and non-discriminatory provisions

Schindler, Case C-274/92 [1994] ECR I-1039

4.Services offered by Lawyers

Directive 77/249, OJ 1977 L78/17

Gebhard, Case C-55/93 [1995] ECR I-4165

5.The Limits to the Freedoms

Alpine Investments, Case C-384/93 [1995] ECR I-1141

Graf C-190/98 [2000] 1 CMLR 741

IIIEXCEPTIONS TO THE FREEDOMS

Reading

Barnard Ch 14

O’Leary, “Judicial Exceptions to the Free Provision of Services” (1995) 1 European Law Journal 308

Costello, “Market Access All Areas – The Treatment of Non-discriminatory Barriers to the Free Movement of Workers” (2000) 27 LIEI 267

1.Treaty Exceptions

Article 39(3) – “subject to the limitations justified on grounds of public policy, public security or public health.”

Article 45 – official authority

Article 55 – provisions of Arts 45-48 apply to services.

  1. Secondary Legislation re public policy etc

(needs updating to 2004 Directive)

Directive 64/221, OJ 1964 (1963-4 OJ Spec. Ed. 117)

Article 2(2) – no limitations for economic ends

Article 3(1) – limitations can be invoked only on the basis of personal conduct

Rutili Case 36/75 [1975] ECR 1219

Van Duyn v HO, Case 41/74 [1974] ECR 1337

Adoui & Cornuaille v Belgium, Cases 115 and 116/81 [1982] ECR 1665

Criminal Convictions

Article 3(2) of Directive 64/221- “previous criminal convictions shall not in themselves constitute grounds for invoking the limitations.”

Bouchereau Case 30/77 [1977] ECR 1999

Bonsignore Case 67/74 [1975] ECR 297

Rogier, Case 48/75 [1976] ECR 497

Public Health

Article 4 and annex

Procedural rights when exceptions invoked

Articles 5-9 of Directive 64/221 – [Articles 8 & 9 concerned with the right to challenge the decision]

Article 8 – same legal remedies as are available to a national

Gallagher, Case C-175/94 [1995] ECR I-4253 noted by O’Leary (1996) 33 CMLRev 777

See Connor “Migrant nationals: Remedies for Refusal of Entry by Member States” (1998) 23 ELRev 157

3.Public Service Proviso

Article 39(4|) “The provisions of this Article shall not apply to employment in the public service”

  • Narrow interpretation (see under Workers)
  • Meaning of “official authority” considered in Reyners, Case 2/74 [1974] ECR 631

See Handoll “Article 48(4) EEC and Non-national Access to Public Employment” (1988) 13 ELRev 223

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