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Summary The right of establishment (articles 49-55 TFEU) and the right to supply and receive services (articles 56-62) (including case law)€10,49
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Dit is een samenvatting voor het vak European Law en gaat over the right of establishment en the right to supply and receive services. De samenvatting is in het Engels en bevat ook de jurisprudentie behorende bij het thema.
Summary week 17
Chapter 24 – the right of establishment (articles 49-55 TFEU) and the right to
supply and receive services (articles 56-62)
24.1. Introduction
Right of establishment = Article 49 TFEU
Right to supply and receive services = Article 56 TFEU
Both for natural persons who are nationals of MS. Case Viking; also private
parties
49 can produce horizontal direct effect in some circumstances.
Under 49 and 56 not only directly and indirectly discriminatory rules are
prohibited, but also non-discriminatory rules that are liable to restrict or
otherwise impede or make less attractive the exercise of these rights.
24.2. the distinction between the freedom of establishment and
the freedom to provide services
Have much in common:
1. Fundamental to the proper functioning of the internal market
2. Same objective; removal of obstacles to the establishment of the internal
market for persons who wish to exercise economic activities
3. They support each other in that the purpose of establishment is often to
create a new base to offer services
4. Beneficiaries of both freedoms are natural and legal persons
5. Some provisions of the Treaties apply to both freedoms (62 TFEU)
But the Treaties make a distinction, because:
- The provision of services is different in nature from migration from one MS
to another for the purpose of establishment
- Freedom to provide services involves legislation by two MS: the MS of
establishment of the provider of services and the MS where the service is
provided. Principle of mutual recognition: host MS is required to take
account of national rules of a MS of establishment of the provider of
services. However, a host MS may impose restrictions based on
derogations set out in the Treaties, or justified by overriding reasons of
general interest. The principle of mutual recognition together with the
principle of proportionality will determine whether restrictions imposed by
a host MS are lawful.
Case Gebhard: regularity, periodicity and continuity of a service should be taken
into account in order to decide whether 49 or 56 applies (para 27).
24.3. development by the ECJ of the right of establishment and of
the right to provide services
The council adopted two general programmes for the abolition (afschaffing) of
restrictions on both freedoms. But the MS were dragging their feet in
implementing the programmes (langzaam doen omdat ze het eigenlijk niet
willen). In these circumstances two decisions of the ECJ changed the approach of
the Union towards the removal of the restrictions.
a. Case Reyners (right of establishment); also article 18 TFEU applies to the
freedom of establishment and 51 TFEU do not apply to the profession of
advocate
b. Case Binsbergen (right to provide services); articles 56/57 are directly
effective, are subject to 18 TFEU. National rules which are directly
, discriminatory can only be justified on the grounds set out in the Treaty,
indirectly discriminatory nat. rules can be justified in some circumstances.
After objectively justified comes proportionate.
24.3.1 summary of the case law of the ECJ on the freedom of
establishment and the provision of services
49 and 56 are directly effective. In some circumstances 56 is horizontally
directly effective
The provisions prohibiting discrimination (18, 49, 56) may be invoked to
challenge a national rule. Both direct and indirect discrimination (based on
factors other than nationality) is prohibited.
ECJ condemned non-discriminatory national measures which are liable to
hinder or to make less attractive the exercise of the freedoms. If a rule
constitutes a restriction on the freedom to provide services it is within the
scope of 56 unless justified. Initially the ECJ refused to condemn national
measures which were non-discriminatory in respect of the right of
establishment. In Gebhard it turns.
Distinction between the application of principle of non-discrimination in
respect of the different freedoms. Establishment: the principle requires
that nationals of other MS are treated in a host MS in the same manner as
nationals of that MS because they are in the same situation. Services: not
in the same situation (provider of services resides in his own MS), so
national treatment to them is unfair.
Both rights are not absolute. Subject to important limitations. The first is
based on the Treaties: 51 and 52 (1) TFEU. See also 62 TFEU.
Principle of mutual recognition plays a crucial role in the removal of
obstacles to the exercise of both freedoms.
24.4. Beneficiaries of the right of establishment and of the right to
provide services
Nationals and their families, and companies formed according the law of any of
the MS
24.4.1. natural persons
Nationals of a MS, irrespective of whether or not they reside within the EU.
However, nationals of a third country lawfully residing in a MS cannot rely on 49
in order to establish themselves in another MS. Third county nationals lawfully
residing and working in a MS can be temporarily sent by their employers to
provide services in another MS.
If a national of a MS has dual nationality, he or she can rely on that which is most
favourable to the exercise of his/her right of establishment/provision of services.
24.4.2. legal persons
Companies and firms (54 TFEU).
Provisions of the Treaties relating to the freedom to provide services do not apply
to non-profit making legal persons.
24.4.3. reverse discrimination
Reverse discrimination is permitted under EU law relating to both freedoms. In
this respect two situations should be distinguished: purely internal situations and
situations within the scope of EU law.
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