Summary
Summary Internal Market Law (IML)
- Course
- Institution
- Book
Lectures , Workshops and Book Material
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
More summaries for
-
All notes European Law
-
Constitution EU foundations complete notes
-
Samenvatting EU Law (Book, methodology clips and cases), ISBN: 9780198856641 European Law (RGBUIER003)
Seller
Follow
anmolzsidhu
Reviews received
Content preview
Internal Market LawSummary
Table of Contents
Lecture 1: Introduction......................................................................................................................1
Lecture 2: Free Movement of Goods I............................................................................................5
Lecture 3: Free Movement of Goods II...........................................................................................9
Lecture 4: Freedom of Establishment.........................................................................................13
Lecture 5: Freedom to Provide Services.....................................................................................17
Lecture 6: Free Movement of workers and of EU citizens....................................................24
Lecture 7: Free movement of capital and Recap of the previous topics.........................34
Lecture 1: Introduction
Internal market in a nutshell (single or common market)
the internal market sets out the four freedoms
Free movement of goods
Goods can move around the EU without barriers
No custom duties on the border
No unfair taxation
No quotas
No restrictions on size, shape, packaging etc.
Basically, no restriction within the EU
o E.g., product manufactured in France can be sold without any
taxes/customs/duties in e.g., Italy.
o French cheese bought in Netherlands not a high price, NL cannot
restrict the sale of this cheese
Free movement of people (workers)
EU citizens can easily go from one EU country to another for family, study or
work purposes
EU citizens do not need a visa to relocate to another EU MS
o E.g., a cook in Spain wants to work at restaurant in Denmark, this cook
can work there for the same price and under the same condition as
Danish citizens
Freedom of establishment and the provision of services
One company registered in the EU MS can provide services in another EU
MS without arranging additional permissions etc.
o E.g., company in France can be contracted to Germany to provide
construction services, does not need many procedures etc.
A company or a self-employed person can fully move their business to
another EU MS (right of establishment)
Page 1 of 36
, o E.g., self-employed person decides to do this business somewhere
else, Italian pizza baker can go to NL to make pizza there.
Free movement of capital
You can invest your money anywhere in the EU
European Monetary Union
David Ricardo Theory of Comparative Advantage
No trade between two countries
NL: 5hrs = 1m of cloth / 10hrs = 5L wine / cloth is more efficient
FR: 10hrs = 1m of cloth / 5hrs = 5L wine / wine is more efficient
Total productivity in 40 hours working week: 6m of cloth, 30 L of wine
What happens if trade is introduced
Countries can specialize, so that they can up their maximum efficiency
o Less time more product
NL 5h = 1m cloth
FR 5h = 1L wine
Total productivity in 40 hours working week: 8m cloth and 40L of wine
More product of both which allows them to trade for how much they need.
NL & FR become interdependent on each other
Suppose they invite other countries, and they decide to set up common
institution to make sure everybody plays by the rules.
o Establishment of EU
EU in a nutshell
Established by the Treaty of Rome as the EEC (1957)
Before the SEA (Single European Act, 1987) difficult to achieve the
harmonization of laws between the MS
Adoption of the SEA in 1987 introducing QMV (qualified majority voting)
Subsequent Reform Treaties culminated in 2007 with the conclusion of the
Treaty of Lisbon
Creation of the EEC
The main purpose of the EEC was the creation of long-term normalized, friendly
relations between European nations after WWII through the liberalization of trade.
The EU has never been just a free trade area despite the pro-Brexit narrative
Main goal was preventing wars
Core idea was to live peacefully rather than just free trade
Six stages of economic integration
1. Preferential Trade Agreements (PTA)
An agreement to reduce or remove tariffs on particular goods traded between
two or more nations
2. Free Trade Area (FTA)
Page 2 of 36
, An agreement to completely remove tariffs on all goods and some services
between member nations
3. Customs Union
A free trade agreement in which MS also adopt common external tariffs on
non-member nations goods
4. Common Market
A customs union in which members allow for free flow of labour and capital
between MS (with common external tariffs and completely free trade in goods
and services
5. Currency Union
A common market in which MS also share a currency and a central bank.
Each MS forgoes the freedom to determine its own policy. Each MS
determines its own fiscal policy.
6. Complete Economic integration
A currency union in which MS enjoy completely free flow of goods, services,
labour and capital across borders and in which single fiscal autonomy
determines the level of government spending for the economy as a whole.
The EEC was a customs union
The EU has a common market
o Higher level of integration
The MS sharing the Euro have entered into a Currency Union (5 th stage) and
there are talks of a Fiscal Union (6th stage)
o Not all MS use same currency
o There also is no fiscal union
Different techniques to achieve economic integration
Negative integration
The founding treaty was largely based on a negative integration approach
o About integration achieved by prohibition to e.g., discriminate
o Annul to diff treatment to products from diff countries
i.e., Mutual recognition – to eliminate obstacles of fundamental freedoms &
remove distortions of competition
In order to enhance and strengthen the objective laid down in treaties there is
a need to harmonize laws on the restriction of free movement
o a textbook illustration of how negative integration works.
o Cassis dijijon case
Positive integration – harmonisation
Positive integration: - I.e.: harmonization or approximation: creation of a common
sovereignty through the modification of existing institutions and the creation of new
ones.
Harmonisation
Art. 114(1) TFEU – can be used to eliminate obstacles to exercise of fundamental
freedoms and be used to remove distortions of competition
Full harmonization
Page 3 of 36
, Eu lays down detailed rules entirely replacing MS legislation
Rarely used why? shared competence
Minimum harmonization
Eu sets the minimum threshold under which it is not possible to go under. MS are
free to impose higher standards
Main disadvantage?
Potential race to the bottom (+ so-called ‘Brussels effect’ observed)
Case C-376/98 Germany v Parliament & Council – Tobacco advertising, I
• Parties to the dispute
• Germany (plaintiff)
• Parliament and Council (defendants)
• Legal action
• Action for annulment
• Legal problem
• Did the EU have competence to adopt the Directive on the advertising
of tobacco products?
• Article in question: 114 TFEU
• Art. 100a is mentioned because the decision of the Court was adopted
before the Lisbon Treaty. Therefore, the numbers of articles are
different.
• What did Germany want
• Prohibition to advertise tobacco products in periodicals, magazines and
newspapers
• Prohibition to advertise tobacco products on posters, parasols,
ashtrays and other articles
• What were the plaintiff’s arguments?
• The chosen legal basis (art. 114 TFEU) is not appropriate
• Para 13: Tobacco advertising is an internal issue
• Para 29: Art. 114 TFEU should be available as a legal basis only in
cases where obstacles to the exercise of fundamental freedoms and
distortion of competition are considerable
• Para 34: The center of gravity of the measure is public health
protection
• What were the defendant’s arguments?
• Para 37: Not a purely national matter: there is an internal market in the
tobacco products advertising sector in which advertising campaigns are
often centralized and designed by agencies established in the
Community
• Para 49: It is sufficient if the disparities between the laws of the
Member States are liable to hinder the free movement of goods
• Para 51: Competition between MS can be distorted as a result of
diverse legislation on tobacco advertising
• Para 56: Human health protection is a secondary objective
• What did the Court decide?
• Para 84: A measure adopted based on art. 114 TFEU must genuinely
have as its object the improvement of the conditions for the
establishment and functioning of the internal market
• Para 95: It therefore necessary to verify whether the Directive actually
contributes to eliminating obstacles to the free movement of goods and
Page 4 of 36
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller anmolzsidhu. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.18. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67096 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now