This pdf contains both the lecture notes as well as the book information from the section Free Movement of Establishment, Services, and Capital, in the second part of the course Institutional and Substantive Eu Law.
Legal Basis:
1. Primary Legislation
Establishment (self-employed activities) → Permanent link
ART 49→ Natural and legal persons
ART 54→ Profitable companies
ART 52→ Exceptions to breach
→ Can freedom of establishment and services be applicable at once? No, one prevails
- Important to make the distinction clear.
Services
ART 56→ Prohibition on restriction to provide services → Temporary
ART 57→ “Definition” provided for remuneration
ART 62 → Exception to breach ART 56+57 (Public policy, public security, public health)
2. Secondary Legislation
Service Directive 2006/123/EC
- Definition of Service: Art 4
- Broad Exclusions: Art 2 + 3
- Art 16: requirements for services
- Aim: Create an open single market in services within the EU while at the same time
ensuring the quality of services provided to consumers.
Posted Workers Directive
- Posted Workers Directive 96/71/EC: Applies to undertakings NOT workers
- Terms & conditions
- Art 3→ MIN requirements Host MS can impose on company
- Case Laval
- Latvian company, refurbishing a school in Sweden
- Using its own Latvian workers. (Posted)
- Workers earned less than Swedish workers.
- Swedish construction union wanted to apply the Swedish
collective agreement.
- Laval refused due to the uncertainty on how much he would have
to pay his workers.
- Action brought against Laval
- Successfully argued this was contrary to EU law.
, Recognition of Qualifications
Directive 2005/36 EC: Recognition of qualifications
- Gebhard Case
Wholly Internal Situation
- For EU law to apply→ Cross border element
- Art 49 TFEU
- Restrictions on own nationals leaving territory
- WHY: If a MS prevents own nationals from leaving to provide services in
another MS→ freedom of services applied only ineffectively
- Restrictions on own nationals when returning
- WHY: not fall inside wholly internal situation
Ex: Recognition of qualification/diplomas
Case: Government of the French Community and Walloon Government v Flemish Government
- Form of indirect discrmination
- Constitutes a restriction→ Other EU provide services do not have
access to car insurance scheme
- Limiting to belgians living in flemish
part
- Apply: only to those never exercise
cross borders
Freedom of Establishment
- Self Employed People
a. Natural and Legal Persons
- Art 49 TFEU
- Actual establishment of a company in another MS
- Individual / self employed as well
Materiae
1. Actual establishment (permanent presence)
2. Pursuit of genuine economic activity
- Ex: Charity → does not earn / offer services paid for on the market
Personae
- Natural persons→ All type of self employed activity Ex: lawyer
- Case Gebhard
- COJ: membership of bar is a condition for exercising right of
freedom of establishment
- Condition / Limitation→ breach Art 49
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