Freedoms of EU internal market

PROGRAM

INTRODUCTION

ECTS credits: 4,5; local credits: 3

The course of “Freedoms of EU internal market” focuses on the four freedoms of internal market: it aims to provide a detailed analysis of the legal foundations of the single market, trace the deployment of “positive” and “negative” integration mechanisms and legal techniques to achieve completion of the internal market, explain fundamental principles of its functioning and tendencies of regulation. While concentrating on every of four freedoms of internal market (free movement of goods, persons, services and capital) and specifics of their regulation, the interaction of these different policies shall also be shown. This course provides students with in-depth analysis of landmark cases in the field and crucial pieces of EU legislation, aims to discuss and explain tendencies of regulation.

At the end of the course students should pass a written exam, which may include both discussion on theoretical questions and a settlement of practical examples. The final evaluation mark is calculated on an accumulative basis (i.e., depends both on the results of the final exam as well as on student’s participation in the seminars), therefore students are expected to prepare thoroughly and to participate actively in each seminar.

As a prerequisite, students are expected to know the essentials of EU substantive and institutional law; the basic knowledge of legal theory and civil law. The course is taught in English.

The course is taught by PhD candidate Vitalija Tamavičiūtė.

COURSE TOPICS

I topic. Free movement of goods

Stages of the creation and realization of the internal market. Creation of customs union. Common customs territory. Fundamental principles of the Common market and their practical influence ensuring free movement of goods in the European Union. EU transit. Other economic customs’ regimes.

Definition of goods in the EU law and the case law of the ECJ. Specific goods (cultural objects; explosions, used for non military purposes; firearms; dual-use items; radioactive waste; psychotropic substances, etc.) and their movement regimes.

Definition of fiscal barriers. Customs duties and charges having equivalent effect. Practice of application of Art. 30 TFEU (ex. Art. 25 EC). Charges for inspections and effective services rendered. Internal taxation. Prohibition of directly and indirectly discriminating taxation. Prohibition of protective taxation. Relationship between Art. 28-30 TFEU (ex. Art. 23-25 EC) and Art. 110-113 TFEU (ex.Art. 90-93 EC).

Technical barriers. Definition of quantitative restrictions and their prohibition in EU law ( Art. 34-35 TFEU (ex. Art. 28-29 EC)). Geddo case and its ratio. Definition of measures having equivalent effect to quantitative restrictions (MEQR). Dassonville formula. Prohibition of discrimination aiming to ensure the free movement of goods. Direct effect of Art. 34 TFEU ex. Art. 28 EC).

Distinctly and indistinctly applicable quantitative restrictions. Principles formed in Casis de Dijon case. Mutual recognition rule. Concepts of mandatory requirements and the rule of reason. Their influence to the free movement of goods.

The essence of Keck and Mithouard case and its impact to the free movement of goods. Concept of selling arrangements.

Justifying discriminatory measures. Art. 36 TFEU (ex. Art. 30 EC) and conditions for its application.

Free movement of goods and intellectual property. Definition of parallel import and preconditions for its practical implementation. Exhaustion of rights doctrine. Hoffmann-La Roche case. . Keurkoop BV v. Nancy Kean Gifts BV case. Common commercial policy. Protective measures in case of import.

II topic. Free movement of persons

Fundamental principles applied to the free movement of persons. Persons, enjoying free movement rights.

Free movement of workers. Stages of implementation of the free movement of workers according to the EC Treaty.

Application of the free movement of workers: (a) material scope: requirement of foreign element; (b) personal scope: subjects of the free movement of workers, requirement of citizenship, the definition of worker, status of job-seekers, status of unemployed, worker’s family members and their rights; (c) territorial scope; (d) temporal scope.

Substance of the free movement of workers (rights resulting from the free movement of workers). Rights requiring equal treatment ( Art. 45(2) TFEU (ex. Art. 39(2) EC)): right to employ, right to equal working conditions, right to equal social benefits. Rights not related to equal treatment (Art.45(3) TFEU (ex. Art. 39(3) EC)): right to free movement, right to settle, right to remain. Supplementary free movement rights of workers: right to recognition of diplomas, right to social assistance.

Prohibition of discrimination based on citizenship in the free movement of workers: the concept of discrimination, relationship between Art. 18 and Art. 45(2) TFEU (ex. Art. 12 and Art. 39(2) EC), direct (open) and indirect (hidden) discrimination, “reverse” discrimination, prohibition of discrimination and restrictions (Bosman case), justifying discriminatory measures.

Free movement of pensioners and students.

Exceptions to the free movement of persons. The public policy, security and health concepts in the EU legislation and the case law of the ECJ. Criteria for application of derogations. Public service exception: institutional and functional methods of interpretation of public service, criteria to define work in the public service sector (the exercise of powers conferred by public law and the safeguarding of the general interests of the state) and their content.

III topic. Freedom of establishment

Definition of freedom of establishment and its differences from free movement of persons and free movement of services. TFEU provisions on establishment and the basic decisions of the ECJ. Removal of restrictions of establishment by secondary legislation and the case law of the ECJ: direct and indirect discrimination. Justifying restrictions of establishment.

Establishment of self-employed persons. Primary and secondary establishment. Establishment of lawyers.

Recognition of professional qualifications. General and special systems for recognition of professional qualifications. Requirements for recognition of professional qualifications.

Establishment of companies. Definition of “company”. Primary and secondary establishment. Harmonisation of EC company law. European Economic Interest Grouping,European Society (SE), European Cooperative Society (SCE).

IV topic. Free movement of services

Definition of free movement of services: freedom to provide services and freedom to receive services. Citizenship of the receiver of services and provider of services, domicile/place of registration. Requirements for professional qualification, rules on professional behaviour.

Definition of services. Restrictions for provision of services. ECJ decision in Keck case and its compatibility with rules on free movement of services. Justifying restrictions of free movement of services in the TFEU and ECJ case law.

V topic. Free movement of capital. European monetary union

Free movement of payments. Free movement of capital: types of movement of capital and removal of barriers for free movement of capital in the EU.

European monetary system (EMS). Exchange Rate Mechanism (ERM). European Currency Unit (ECU). First stage of establishment of European monetary union. Second stage of establishment of European monetary union: European monetary institute. Convergence criteria: stability of prices, budgetary discipline, stability of long term interest rates, stability of exchange rates. Third stage of establishment of European monetary union: introduction of Euro. Regulation 1103/97. Regulation 974/98. Tying of money, capital, currency and banking sector with Euro.

Issueing of banknotes of Euro. Removal of national currencies from circulation.

European Central Banks System. European Central Bank (ECB). ECB governing organs. ECB functions. New Exchange Rate Mechanism. Preparation of Lithuania to join monetary union.

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LITERATURE
Books and Articles
  1. A.M. Arnull, A.A. Dashwood, M.G. Ross & D.A. Wyatt“Wyatt & Dashwood’s European Union Law”, Fourth Edition. London, 2000.
  2. Barnard, Catherine, The Substantive Law of the EU, OxfordUniversity Press, 2004.
  3. Craig, Grainne de Burca. EC LAW. Text, cases, and materials.- Clarendon press, Oxford, 2008.
  4. De Grauwe P. Ecomics of Monetary Union, the fourth edition, 2000.
  5. Eijffinger S., De Haan J., European Monetary and Fiscal Policy, 2000.
  6. Labor, Employment, and Social Policies in the EU. Enlargement process, edited by Bernard Funk, Lodovico Pizzati, Washington, 2002.
  7. Franzen, Martin. Privatrechtsangleichung durch die Europäische Gemeinshaft, Berlin, 1999.
  8. Hays, Thomas, Parallel Importation Under the Eropean Union Law, Sweet & Maxwell, 2004.
  9. Jacques Pelkmans, European Integration. Methods and Economic Analysis, 2 ed., Harlow, 2001.
  10. Josephine Steiner, Lorka Woods, “Text book EC Law”, 7 ed., London, 2000.
  11. Loukas Tsoukalis, The New European Economy, New York, 1997.
  12. Woods, Lorna, Free Movement of Goods and Services within the European Community, Ashgate, 2004.
Internet Journals and Sites
  1. European Law Review
  2. European Law Journal
EU law and main ECJ cases
  1. TFEU
Free movement of goods
ECJ cases

Case 7/68 Commission v. Italy (art treasure case);

Case 7/78 Regina v. Ernest George Thompson, Brian Albert Johnson and Colin Alex Norman Woodwiss;

Case C-2/90 Commission v. Belgium (Wallonian waste),

Case 26/62 Van Gend & Loos;

Case 24/68 Commission v. Italy (statistical data case);

Joint Cases 2 ir 3/69 Diamantarbeiders;

Case 46/76 Bauhuis v. Nethelands;

Case 133/82 Commission v. Luxembourg;

Joint Cases C-441 and 442/98 Kapniki MichaïlidisAE v. Idryma Koinonikon Asfaliseon (IKA),

Case 77/76 Entreprise F.lli Cucchi v Avez S.p.A;

Case 148/77 H.Hansen jun. And O. C. Balle GmbH and Co. v. Hauptzollamt de Flensburg,

Bear and vine case 170/78 (Commission v. United Kingdom);

Case 243/84 John Walker and Sons Ltd v. Ministeriet for Skatter og Afgifter;

Case 184/85 Commission v. Italy;

Case 356/85 Commission v. Belgium,

Case 270/83 Commission v. France;

Case 197/84 Steinhouser v. City of Biarritz;

Case 256/85 Commission v. Belgium;

Case C-204/90 Bachmann;

Case C-330/91 Commerzbank;

Case C-1/93 Halliburton services;

Case C-250/95 Futura;

Case C-55/98 Skatteministeriet v. Bent Vestergaard;

Case C-388/01 Commission v. Italy,

Case 2/73 Geddo v. Ente Nazionale Risi;

Case 8/74 Dassonville;

Case 120/78 Cassis de Dijon;

Case 249/81 Commission v. Ireland(‚Buy Irish‘ case);

Case 207/83 Commission v. United Kingdom;

Joint Cases 60 and 61/84 Cinéthèque SA and others v. Federation nationale des cinemas francais;

Case 178/84 Commission of the European Communities v. FederalRepublic of Germany;

Case 145/88 TORFAEN (Sunday trading case);

Joint cases C-267 and 268/91 Criminal cases v.Keck and Mithouard;

CaseC-292/92 Hünermund and others;

CaseC-470/93 Mars;

Case C-34-36/95 Konsument Ombudsmannen (Ko) v. De Agostini (Svenska) ForlagAB and TV-shop i SverigeAB;

Case C-265/95 Commission v. France,

34/79 Henn and Darby; Case 40/82 Commission v. United Kingdom;

Case 174/82 Officier van Justitie v. Sandoz BV;

Case 72/83 Campus Oil;

Case 121/85 Conegate v. HM Customs and Excise;

Case C-379/98 PreussenElektra AG v. Schleswag AG,

Case 53/76 Bouhelier; case 15/79 Groenveld;

Case237/82 Jongeneel Kaas BV.

Other cases of the ECJ (see comment of Art. 28-30 EC ).

Legal acts
  1. Regulation (EEC) No. 2913/92;
  2. Regulation (EEC) No. 2454/93;
  3. Directive 70/50/EEC [no longer in force];
  4. Communication from the Commission concerning the consequences of the judgement given by the Court of Justice on 20 February 1979 in Case 120/78, OJ 1980 C 256, p. 2 (3.10.80) ;
  5. Communication from the Commission to the European Parliament and the Council: Mutual recognition in the context of the follow up to the Action Plan for the Single Market ir [Commission] First Report On the Application of the Pirnciple of Mutual Recognition in Product and Services Markets) ;
  6. Regulation (EC)No. 764/2008;
  7. Directive 91/477/EEC;
  8. Directive 93/7/EEC.
Free movement of persons
ECJ cases

Case 35/82 Morson [1982] ECR-03723

Case C-19/92 Kraus [1993] ECR-I-01663

Case C-175/88 Biehl [1990] ECR- I-01779

Case C-415/93 Bosman [1995] ECR -I-04921

Case C-55/94 Gebhard [1995] ECR I-04165

Case C –190/98 Graf [2000] ECR- I-00493

Case 53/81 Levin [1982] ECR -1035

Case 139/85 Kempf [1986] ECR- 1741

Case 196/87 Steymann [1988] ECR-6159

Case 66/85 Lawrie-Blum [1986] ECR- 2121

Case 344/87 Bettray [1989] ECR-1622

Case C-292/89 Antonissen [1992] ECR I-745

Case 33/88 Allue [1989] ECR-1591

Case C-4/91 Bleis [1991] ECR I-5627

Case 67/74 Bonsignore [1975] ECR- 297

Case 36/75 Rutili [1975] ECR -1219

Case 41/74 Van Duyn [1974] ECR- 1337

Case 115/81 Adoui [1982] ECR-01665

Case 96/85 Commission v. France [1986] ECR- 1475

Case C-114/97 Commission v. Spain [1998] ECR I-6717

Case C-335/98 Commission v. Belgium [2000] ECR I-1221

Case 131/85 Gul [1986] ECR -1573

Case C-405/01 Colegio de Oficiales de Marina Mercante Espanola [2003] ECR- I-10391

Case C-47/02 Anker [2003] ECR- I-10447

Case 152/73 Sotgiu [1974] ECR -153

Case 149/79 Commission v. Belgium [1980] ECR I-3881

Case 307/84 Commission v. France [1986] ECR -1725

Case 225/85 Commission v. Italy [1987] ECR -2625

Case C-473/93 Commission v. Luxembourg [1996] -ECR-3207

Case C-290/94 Commission v. Greece [1996] ECR -I-3285

Case C-114/97 Commission v. Spain [1998] ECR- I-06717

Case C-283/99 Commission v. Italy [2001] ECR- I-04363

Legal acts

1. Regulation(EEC) No. 1612/68.

2. Decision No. 2003/8.

3. Directive 2004/38EC

4. Directive 2005/36/EC.

Free movement of services
ECJ cases

Case 198/89 Commission v. Greece [1991] ECR I-727

Case 205/84 Commission v. Germany [1986] ECR 3755

Case 33/74 Van Binsbergen [1974] ECR 1299

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

Case C-51/96 Delioge [2000]ECR I-2549

Case C-76/90 Manfred Sager v Dennemeyer & Co. Ltd. [1991] ECR I-4221

Joint Cases 110 ir 111/78 Van Wesemael [1979] ECR 35

Case C-109/92 Stephan Max Wirth v. Landeshauptstadt Hannove

Case C-398/95 Syndesmos ton en Elladi Touristikon kai Taxidiotikon Grafeion v Ypourgos Ergasias, 1997, ECR I-3091;

Case 286/82 ir 26/83. Luisi and Carbone;

CaseC-157/99 B.S.M. Geraets-Smits v. Stichting Ziekenfonds VGZ and H.T.M. Peerbooms v. Stichting CZ Groep Zorgverzekeringen;

Case 186/87 Cowan;

Case C-45/93 Komisija v Ispanija.

Legal acts

1. Directive 2006/123/EC.

Freedom of establishment
ECJ cases

Case 2/74 Reyners v. Belgium, 1974, ECR 631;

Case C-251/98 C. Baars v Inspecteur der Belastingen Particulieren/Ondernemingen Gorinchem;

Case 71/76 Thieffry v Conseil de l’Ordre des Avocats a la Cour de Paris, 1977, ECR 765;

Case 79/85 Segersv Bedrijfsvereniging voor Bank- en Verzekeringswegen, Groothandel en Vrije Beroepen, 1986, ECR 2375;

Case C-19/92 KrausvLand Baden-Württemberg, 1993, ECR I-1663;

Case C-221/89 Regina v. Secretary of State for Transportation ex parte Factortame, 1991, ECR 3905;

Case C–221/97 Centros Ltd v Erhervs - og Selskabsstyrelsen, 1999, ECR 1495;

Case C-55/94 Gebhard v Consiglio dell’Ordine degli Avvocati e Procuratori di Milano, 1995, ECR I-4165;

Case C-81/87 R. v HM Treasury and Commissioners of Inland Revenue, ex p. Daily Mail and General Trust plc, 1988, ECR 5483;

Case C-267 ir 268/91 Keck [1993], ECR I-6097;

Case C 208/00 Überseering BV vs. Nordic Construction Company Baumanagement GmbH (NCC);

Case C 167/01 Kamer van Koophandel en Fabrieken voor Amsterdam vs. Inspire Art Ltd

Case 107/83 Klopp [1984] ECR 2971

Case 115/78 Knoors [1979] ECR 399

Case 136/78 Auer [1979] ECR 437

Case Surinder Singh C-370/90 [1992],

CaseAascher C-107/94.

CaseCommision v. France 270/83 [1986].

CaseFutura C-250/95.

Legal acts
  1. Directive 2004/38/EC
  2. Directive 2005/36/EC.
  3. Directive 98/5/EEC.
  4. Directive 77/249/EEC.
Free movement of capital
ECJ cases

CaseCasati C-203180 [1981] ECR 2595

CaseLuisi and Carbone C- 286182 and 26/83 [1984] ECR 377

CaseBordessa and Others C-416193 [1995] ECR 1-361

Case Commission v. Portugal C-367/98 [1998]

Case C-163/94 Sanz de Lera

Case 308/86 Lambert;

CaseC-302/97 Klaus Konle.

Legal acts

1. Regulation (EC) No. 1103/97;

2. Regulation (EC) No. 974/98.