Samenvatting

Summary - Law of the European Union (RGBEE50110)

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Rijksuniversiteit Groningen (RuG)

The summary includes detailed notes from lectures weeks 1-7. Additionally, they combine readings notes, include case summaries, explanation of applicability criteria and relevant articles.

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Internal Market
Internal Market – Theory & Articles

What is the Internal Market?
● Article 26(2) TFEU: definition
○ Area without internal frontiers
○ Free movement of goods, persons, services, and capital
○ Persons = individuals + legal persons

● Article 3(3) TFEU: mentions of the internal market

● Article 4(2)(a): shared competence
○ As long as there is no positive integration the MS remain competent to regulate their economies subject
to limitations stated in the treaties

● Article 114(1) TFEU: legal basis (What can be harmonized)
○ EU Parliament + Council
○ Following the OLP & after consulting the Economic and Social Committee:
○ Adopt measures for the approximation of laws in MS which have as their object the establishment /
facilitation of function of the internal market
■ Residual provision; only used if not other legal bases are available
■ QMV in Council necessary (innovation of SEA)
■ Doesn’t apply to fiscal provisions, movement of persons & workers

● Protocol 27 on the Internal Market and Competition

Creating an Internal Market (2 ways)
● Negative Integration
○ Prohibitions in the Treaty directed at MS & private parties
○ Maintains national regulations subjects to certain specific prohibitions laid down in EU treaties (e.g.
discrimination based on nationality)

● Positive Integration
○ Harmonization of legislation to create common rules
○ Substituting national legislation in some specific area with EU law standards

● NOTE: EU USES BOTH
○ The internal market is a shared competence — art. 4(2)(a) TFEU
○ While negative integration always applies, within the constraints of those treaty prohibitions, MS are
free to regulate their economies up until the moment the EU decides to harmonize
○ As long as there is not yet positive integration, MS remain competent to regulate their economies subject
to regulations of negative integration

Philosophies of Market Regulation

, ● Models of Negative Integration
○ Host State Model
■ You must abide by host state regulations
■ Included general prohibition of discrimination
○ Home State Model
■ Forced recognition of each other’s standards
■ Only subject to home state regulations

● Models of Positive Integration
○ Harmonization
■ Total
● Establishing common rules at EU level and it applies everywhere without exception
■ Minimum
● Regulatory standards which are minimum standards that must apply in each MS, but
MS can go further to apply their stricter standards
● E.g. environmental law

Competences
● Article 3 TFEU: Exclusive Competences
○ Only EU may legislate and adopt legally binding acts in these areas

● Article 4 TFEU: Shared Competences
○ Both EU and MS may legislate and adopt legally binding acts within the constraints of those Treaty
prohibitions, MR are free to decide until the Union decides to harmonize the laws

● Article 4(2)(a) TFEU: Internal Market is a shared competences
○ Even through negative integration always applies (prohibition)
○ There is no positive integration (harmonization) in any area of law
■ MS remain competent to regulate their own economy

● Article 6 TFEU: Auxiliary Competences
○ Competence to carry out actions to support, coordinate, or supplement the actions of the MS

Procedures
● Article 294 TFEU: Ordinary Legislative Procedure
○ Commission, EP and Council cooperate in order to create new legislation

● Article 289 TFEU: Special Legislative Procedure
○ EP and Council are co-legislators, however Council is more powerful
○ Treaties do not provide a specific definition of SLP because rules are defined ad hoc based on relevant
treaty articles

Principles
● Article 5(3) TFEU: Principle of Subsidiarity
○ Is it the appropriate level to act?

, ○ Test
■ Is the objective pursued with measure an EU objective?
● Has to be yes
■ Necessity tets — Can the measure be sufficiently achieved by MS?
● Has to be no
■ Can the objective be better achieved at EU level
● Has to be yes

● Article 5 TEU: Principle of Conferral
○ Tobacco Advertising I

Legal Basis
● Articles 101 - 109 TFEU & Protocol 27 on the internal market and competition
○ Make clear that a system of fair competition forms an integral part of the internal market
○ As set out in article 3(3) TEU^

● Article 101 TFEU: Exhaustive list of prohibitions that are incompatible with the internal market

● Article 102 TFEU: Exhaustive list of abuse by dominant undertakings that is prohibited within the IM

Fundamental Freedoms TFEU
● Goods:
○ 28: “Union shall comprise a customs union which shall cover all trade in goods…”
○ 29: “Products from third countries shall be considered to be in free circulation in a MS…”
○ 30: “Customs duties on imports and export and charges having equivalent effect shall be prohibited…”
○ 34: “Quantitative restrictions on imports and all measures having equivalent effect shall be prohibited
between MS” (Cassis de Dijon)
○ 110: “No MS shall impose, directly or indirectly, on the products of other MS and internally taxation of
any kind in excess…”

● Persons
○ 21: "Every citizen of the Union shall have the right to move and reside freely within the territory of the
MS…””
○ 45: “Freedom of movement of workers”
○ 49: Restrictions on the freedom of establishment…”

● Services
○ 63: “Restrictions on the freedom to provide services within the Union…”

Charter Grounds of Justifications to Restrictions of Fundamental Freedoms
● Article 52(1): Scope & Interpretation of rights and principles
○ Limitations on the exercise of Charter rights must be:
■ Provided by law
■ Respect the essence of those rights
■ Respect the principle of proportionality

, ■ Be necessary to meet the objectives of general interest recognized by the Union or the need to
protect the rights and freedoms of others

● Article 52(2): Clarifies that treaty-derived rights are to be exercised according to the conditions and limits
defined by the Treaty

● Article 52(4): Provides that rights resulting from common constitutional traditions must be intercepted in harmony
with those traditions

Overview of Direct Effect
● All rules and principles of EU law that are sufficiently precise and unconditional have direct effect: e.g
○ Treaty Provisions and Fundamental Rights
○ Regulations
○ Decisions
○ Directives
● BUT
○ Not all rules and principles create or may entail obligations for individuals
○ Directives cannot be invoked against individuals
■ Marshall & Faccini Dori
● No horizontal direct effect
● No inverse vertical direct effect
■ Art. 288 TFEU
● Directives are binding on the MS
● Directives do not create obligations for individuals

Indirect Effect of Directives
● Also known as consistent interpretation
● Compensates for the lack of horizontal effect of directives
● In cases where a directive not not correctly implemented by deadline
● Takes effect only if provisions of directives are sufficiently precise & unconditional
● National courts must interpret national law as much as possible in conformity with the directive to avoid conflicts
(Marleasing, Pfeiffer)

Internal Market — Case Law

Van Gend & Loos
● Vertical Direct effect of treaty provisions
● Criteria:
○ Clear
○ Unconditional
○ Negative
○ Without reservations on part of the MS
○ Not dependent on national implementing measures

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