International Business Law
TOPIC 1: European Union Law & Business Law
1. Introduction
Questions
What is the diffirence between
- Europe
- The EU
- The Economic and Monetary Union?
What does suppremacy of EU law mean?
What is the diffirence between…
- European Council, The Council of Europe and The Council of the European Union?
What does the internal market mean and which treaty established this?
Explain the ordinary legislative procedure in the EU.
What kind of sources of EU law do you know and what is the role of the EcJ is this
respect?
What is the Maastricht Treaty and what are the
Maastricht criteria? Are these still relevant?
EU law is based on two Treaties (= Verdragen)
1. Being the Treaty on the Functioning of the EU (TFEU)
2. The Treaty of the European Union (TEU)
- EU law has precedence over the national laws of the countries that have signed the TFEU,
but domestic law and other international legislation might be applicable also. The two can be
in parallel.
- The main objective of the EU, from a business context, is to achieve economic integration
by a common market where goods, persons, capital and services can circulate freely. This can
only be done by a supra-national organization.
Supremacy of EU law (= De oppermacht van de EU)
• The primacy of European Union law (sometimes referred to as supremacy) is an EU law
principle that when there is conflict between European law and the law of its member
states, European law prevails (= krijgt voorrang), and the norms of national law are set aside.
• For the European Court of Justice, national courts and public officials must disapply a
national norm that is believed not to be compliant with the EU law.
Example: If we in Belgium have a conflict with the EU Law, the national courts have to ignore
the national law in benefit of the EU law.
- Directly applicable EU law: EU legislation will apply directly within the legal systems of the
Member Sates, without the need for further acts by the governments of these member
states.
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,- Directly effective EU law: The provisions of directly applicable effective EU law give rights to
nationals of the EU, who can rely on them before a court in their own country in a lawsuit
against another person or their own national government.
→ So that means that I can use EU law, even if it is in conflict with my national law, against
my national government. The Belgian government can’t do anything about it.
To have direct effect a treaty article must:
- Be clear and unambiguous (= Ondubbelzinnig), there can’t be room for interpretation.
- Be unconditional (there are no additional national measures necessary in order for the
provision to be effective)
- Take effect without further acts of the EU or MS
2. The Institution
Legislative Branch = Entranchised people are People that can vote (18+), we have in Belgium
the obligation to vote. So in this situation we have to vote for the European Parliament and
the National parliament. We call these the Legislative branch. They are having a ‘say’ in how
our national and international legislation is applied.
Executive Branch = The European parliament has a President ofcours, he decides the
legislation. From the national but also the European perspective we see a European council
and a European commission. They both have a president and they are known as the
Executive Branch. They execute power of that piece of legislation.
Proposes = European Commission has an impact on the Legislation.
The council of ministers, European parliament and the European Commission have an impact
on how legislation is voted and how it is implemented. Even if the European Commission
isn’t a part of the Legislative branch, they will have an impact.
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,Judicial Branch = The European Central bank and the European Court of Auditors are in the
Judicial Branch. Also the European Court of Justice witch is an Judicial Branch on the
European Level.
THE EUROPEAN PARLIAMENT
The only directly elected (= rechtstreeks verkozen) institution of the EU. Represents
‘the people’, the 500 million inhabitants of the EU.
Plays a key role in the election of the president of the EC
Shares power of the EU budget and legislation with the Counsel of the EU
Is based in three different cities with numerous buildings – in Brussels (Belgium), the
city of Luxembourg and Straßbourg
It has equal control over the EU budget. Ultimately, the European Commission, which
serves as the executive branch of the EU, is accountable to Parliament. So the
parliament controls the European Commision a little bit.
It can decide whether or not to approve the European Council's nominee for
President of the Commission and is further tasked with approving (or rejecting) the
appointment (= de benoeming) of the Commission as a whole. It can subsequently
coerce the current Commission to resign by adopting a motion of censure. (= Het
Parlement gaat het voorstel voor de president of the commission goed of afkeuren en
kan de huidige Commissie dwingen af te treden door een motie van afkeuring aan te
nemen.)
The institutions of the EU
THE COUNCIL OF THE EUROPEAN UNION ( European Council)
= It negotiates and adopts legislative acts (= onderhandeld wetgevingsbesluiten) in most
cases together with the European Parliament through the ordinary legislative procedure, also
known as 'codecision’ (= medebeslissing). -> It has the most powerfull impact on legislation.
1. The Council is responsible for coordinating member states (= lidstaten) policies in
specific field such as… The goal is to avoid big differences between the policies of the
different states.
- Economic and fiscal policies: The Council coordinates member states economic and fiscal
policies to strengthen economic governance in the EU, monitors their budgetary policies and
strengthens the EU's fiscal framework (= begrotingskader), and also deals with the legal and
practical aspects of the euro, financial markets and capital movements
- Education, culture, youth and sport: The Council adopts EU policy frameworks and work
plans in these areas which set out the priorities for cooperation between member states and
the Commission
- Employment policy: The Council draws up annual guidelines and recommendations for
member states, based on European Council conclusions on the EU employment situation (=
werkgelegenheidssituatie)
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, - !! Develops the EU's common foreign and security policy!!
(= gemeenschappelijk buitenlands veiligheidsbeleid)
- The Council defines and implements EU foreign and security policy based on
guidelines set by the European Council.
- This also includes the EU's development and humanitarian aid (= humanitaire hulp),
defence and trade.
- Together with the High Representative of the Union for Foreign Affairs and Security
Policy, the Council ensures the unity, consistency, and effectiveness of the EU's
external action.
2. Concludes international agreements
- The Council provides the mandate to the Commission to negotiate on behalf of the
EU agreements between the EU and non-EU countries (third parties) and
international organisations.
- At the end of negotiations, the Council decides on the signature and conclusion of the
agreement, based on a proposal from the Commission. The council has the final word
of it will be done or not.
- The Council also adopts the final decision to conclude the agreement, once the
Parliament has given its consent (required in areas subject to co-decision) and it has
been ratified (= goedgekeurd) by all EU member states.
- Adopts the EU budget (= Stelt de EU-begroting vast)
- The Council adopts the EU budget together with the Parliament
- Seat in Luxembourg
COURT OF JUSTICE
Since the establishment of the Court of Justice of the European Union, its mission has been
to ensure that "the law is observed" "in the interpretation and application" of the Treaties.
As part of that mission, the Court of Justice of the European Union:
- Reviews the legality of the acts (= de wettigheid van de handelingen) of the
institutions of the European Union. So if the European commission does something
wrong, that decision can be evaluated by the court of justice.
- Eensures that the Member States comply with obligations under the Treaties. So for
example if the Belgium is obligated to do something based on the European directive
and Belgium doesn’t implement any European legislative acts, than the member
states can be fined by the court of justice.
- Interprets European Union law at the request of the national courts and tribunals (=
rechtbank).
The Court forms the judicial authority of the European Union and, in cooperation with the
courts and tribunals of the Member States, it ensures the uniform application and
interpretation of EU law.
For example, if Poland interprets European law in context A and Belgium interprets the
European law in context B, then we have different applications of single acts or in general the
European law. So the court of justice tries to avoid this.
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