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Summary EU Law
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- Erasmus Universiteit Rotterdam (EUR)
Full summary of EU Law .
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2.8 – European Union LawInhoudsopgave
Webcast week 1............................................................................................................................................ 3
Basic notions I......................................................................................................................................................3
Basic notions II.....................................................................................................................................................4
Webcast week 2:........................................................................................................................................... 5
Abuse of a dominant position..............................................................................................................................5
Harmonisation......................................................................................................................................................7
Tariff restriction....................................................................................................................................................8
Webcast week 4: Free movement of capital................................................................................................ 10
Scope..................................................................................................................................................................10
Justification........................................................................................................................................................10
Distinguishing capital from other freedoms......................................................................................................10
Lecture week 1: EU state aid law................................................................................................................. 12
Procedure...........................................................................................................................................................12
Prohibited state aid............................................................................................................................................12
Services of general economic interest (SGIE).....................................................................................................13
Exceptions..........................................................................................................................................................13
Lecture week 1: Prohibition of cartels......................................................................................................... 15
Structure of article 101 TFEU.............................................................................................................................15
Restriction by effect: effect-based analysis....................................................................................................17
Lecture week 2: Free movement of goods part II......................................................................................... 20
Material scope................................................................................................................................................20
Personal scope................................................................................................................................................20
Non-tariff restrictions.........................................................................................................................................20
What is quantitative restriction in imports?..................................................................................................20
Measures having equivalent effect (MEEQR).................................................................................................20
How to deal with the effects of domestic regulation on market access?......................................................20
Negative repercussions on the volume of the sales......................................................................................21
Selling arrangements (Keck)...........................................................................................................................21
Causal link.......................................................................................................................................................23
Lecture week 2: non-tariff restrictions part III.............................................................................................. 24
Justifications.......................................................................................................................................................24
Reasons for justification.................................................................................................................................24
Proportionality...............................................................................................................................................24
Lecture week 2: non-tariff restrictions part IV.............................................................................................. 25
, Export of goods..................................................................................................................................................25
Lecture week 3: Union citizenship part I...................................................................................................... 27
What is the Union citizenship?...........................................................................................................................27
Status (article 20(1) TFEU)..............................................................................................................................27
Rights as citizen..................................................................................................................................................27
Lecture week 3: Union citizenship part II..................................................................................................... 28
The right to move and reside.............................................................................................................................28
How far does the scope reach?......................................................................................................................28
Issue of cross-border situation.......................................................................................................................29
Lecture week 3: Union citizen part III........................................................................................................... 31
Citizenship Rights Directive (CRD)......................................................................................................................31
Personal scope................................................................................................................................................31
Rights..............................................................................................................................................................31
Lecture week 3: Free movement of workers.................................................................................................. 1
Definition..............................................................................................................................................................1
Justifications.........................................................................................................................................................2
Exceptions............................................................................................................................................................2
Lecture week 3: Freedom of establishment of natural persons......................................................................3
Definition..............................................................................................................................................................3
Prohibition........................................................................................................................................................3
Recognition of diplomas and qualifications.....................................................................................................3
Distinguishing establishment of services.........................................................................................................4
Distinguishing free movement rights of natural persons.................................................................................4
Justifications.........................................................................................................................................................4
Exceptions............................................................................................................................................................4
Lecture week 4: Free movement of services.................................................................................................. 5
Definition..............................................................................................................................................................5
Justifications.........................................................................................................................................................5
Exceptions............................................................................................................................................................6
Lecture week 4: Free movement of legal persons part I.................................................................................7
Definition..............................................................................................................................................................7
Lecture week 4: Free movement of legal persons part II................................................................................8
Example................................................................................................................................................................9
Avoiding multiple legal orders.............................................................................................................................9
Avoiding lack of legal orders................................................................................................................................9
Making sense of the case law............................................................................................................................10
Limits..................................................................................................................................................................10
,Webcast week 1
Basic notions I
1. Discrimination
2. Direct discrimination
3. Indirect discrimination
4. Objective differentiation
5. Non-discriminatory restriction
The notions have one thing in common: they are all measures that violate EU internal market law.
Ad 1: Discrimination
An unequal treatment of comparable situations for a specific reason. This specific reason is forbidden by law.
According to this principle, two situations that are comparable to each other must be treated equally.
Ad 2 & 3: (in)direct discrimination
Discrimination is direct if you can identify the ground on which the treatment is based by simply reading the
words of the measure under scrutiny. We would find the very origin of a product back in the wording of the
measure that we look at. This is the thought of discrimination examples and can barely be found in legislation.
More common is indirect discrimination. There is indirect discrimination if the measure we are looking at does
not literally use the origin. The measure is indistinctly implacable. At first sight it does not distinguish according
to the origin of a product. Yet, in real life it has eventually the same effect as the measure required to make a
distinction based on the origin of a product.
For example: Italian and Dutch pasta are allowed, but rules are made that say that every pasta must be made
exclusively from Durum wheat. This kind of measure is in principle not forbidden by EU law. This changes,
however, once you know that only Italian pasta is made exclusively from Durum wheat whilst all other pastas
are made from common wheat or a mix. The application of this law has therefor the effect that Dutch pasta
cannot be sold in Italy, while only the Italian pasta can. The words of the measure are not discrimination. But its
effects are. In such a situation, we speak of an indirect discriminating measure.
Ad 4: Objective differentiation
Whenever there is a discrimination, there is also the possibility of an objective differentiation. This means that
two situations that are treated differently remain different, even if we exclude all forbidden grounds as possible
elements that can define these situations as being different. Hence, the different treatment of these situations is
fine. Because these situations are different. Although two products have a different origin, they also differ in an
aspect that is totally unrelated to the origin.
Ad 5: non-discriminatory restriction
A measure does not treat two comparable situations differently. Neither directly in its wording, nor indirectly by
affecting one situation less favourable than the other. Yet, the application of this measure makes the exercise of
one of the EU cross border freedoms less attractive.
For example: Dutch and Italian pasta. Let’s assume that in Italy, in contrast to The Netherlands, shops are closed
on Sundays. This means that Dutch pasta cannot be sold in Italy on Sundays, although it can be sold in The
Netherlands on Sundays. This lack of sales opportunity in Italy, as compared to The Netherlands, might make it
less attractive for Dutch producers to sell their pasta in Italy. The Sunday closing rule does not care at all about
whether a product is Italian or Dutch; neither directly, nor indirectly. This rule is non-discriminatory. It has
nevertheless implications on cross border trade, we qualify it as a non-discriminatory restriction.
, Basic notions II
After having identified the possible notion of discrimination, let’s turn to the second group of basic notions:
1. Exception
2. Exemption
3. Justification
4. Explicit justification grounds
5. Mandatory requirements
6. Proportionality
These notions have in common that they refine the remaining leeway for member states when their measures
violate EU internal market law.
Ad 1: Exception, justification & proportionality
To understand the meaning of the two distinct categories of exception and justification, you must have a closer
look at proportionality.
Proportionality means that something must be proportionate in relation to something else. It describes a
relationship between two items. The one item is the measure under scrutiny. The other item is the benchmark
against which the proportionality of the measure is tested (EU law: e.g., fundamental freedom or a prohibition of
discrimination).
There is a three-step test to measure proportionality:
1. Is the measure suitable to achieve the objective it invokes?
2. Is the measure necessary to attain this objective?
3. Does even the least restrictive measure not excessively interfere with the EU free movement rights?
If the answer of only one of these questions is no, the measure is disproportionate.
The purpose of the proportionality test is to find shades of grey between the interests of free movement rights
and member state’s autonomy to define protection standards. This requires an individual case-by-case approach.
Member states must provide explanations to why they designed the measure as they did it.
It matters to define if a measure is subject to the proportionality test. That is where the extinction between
exception and justification comes into play.
An exception means that whatever falls under it, is located outside the scope of EU law. A measure that is
covered by an exception, can under no circumstances violate EU law, because it is outside the scope. There is no
need to apply a proportionality test since there is no violation of EU law.
If exempted, the measure is no violation of EU internal market law.
Ad 2: Justification: explicit justification grounds & mandatory requirements
If there is no exception or exemption, a rule can violate EU law. The state can put forward good reasons for its
course of action. If permitted for justification, a measure must meet the requirements of the proportionality test.
When is a measure that violates EU law permitted to be justified? That depends if the measure can rely on
explicit justification grounds or mandatory requirements.
Explicit justification grounds are easily identifiable. The treaty provides explicitly in an own article or paragraph
for a possibility to justify. This possibility is limited to the grounds mentioned in the article or paragraph.
Sometimes the explicit justification grounds are not enough. E.g., article 36 TFEU does not mention protection
of consumer rights as a justification ground. But the Court of Justice provided another category: mandatory
requirements. These are unwritten justification grounds that a member state can also rely on under special
condition. They were developed by the Court of Justice in its case law. Only after the objective is declared
admissible for justification by EU law, we can continue with the proportionality test.
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