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137-432: Five straits are named 'belt' (Danish: bælt ), the only ones in the world. Several other straits are named 'sound' (Danish, Swedish and German: sund ). Where an island is situated between a "belt" and a "sound", typically the broader strait is called "belt" and the narrower one is the "sound": During the 20th and 21st centuries the surrounding areas grew in population and cross-border trade developed, particularly as part of

274-484: A Common European Home . The 1960s saw the first attempts at enlargement . In 1961, Denmark , Ireland , the United Kingdom and Norway (in 1962), applied to join the three Communities. However, President Charles de Gaulle saw British membership as a Trojan Horse for U.S. influence and vetoed membership, and the applications of all four countries were suspended. Greece became the first country to join

411-422: A European Court of Justice ruling in 1999 stated that fishing rights (or fishing permits) are not goods, but a provision of service. The ruling further explains that, both capital and service can be valued in money and are capable of forming the subject of commercial transactions, but they are not goods. Council Regulation (EC) 2679/98 of 7 December 1998, on the functioning of the internal market in relation to

548-517: A Parliamentary Assembly and Courts . Collectively they were known as the European Communities . The Communities still had independent personalities although were increasingly integrated. Future treaties granted the community new powers beyond simple economic matters which had achieved a high level of integration. As it got closer to the goal of political integration and a peaceful and united Europe, what Mikhail Gorbachev described as

685-529: A clearing system , TARGET , for large euro transactions. The final stage of completely free movement of capital was thought to require a single currency and monetary policy , eliminating the transaction costs and fluctuations of currency exchange. Following a Report of the Delors Commission in 1988, the Treaty of Maastricht made economic and monetary union an objective, first by completing

822-713: A referendum on 25 September 1972 . The Treaties of Rome had stated that the European Parliament must be directly elected, however this required the Council to agree on a common voting system first. The Council procrastinated on the issue and the Parliament remained appointed, French President Charles de Gaulle was particularly active in blocking the development of the Parliament, with it only being granted Budgetary powers following his resignation. Parliament pressured for agreement and on 20 September 1976

959-699: A "deterrent effect on portfolio investments" and reducing "the attractiveness of an investment". This suggested the Court's preference that a government, if it sought public ownership or control, should nationalise in full the desired proportion of a company in line with TFEU article 345. Capital within the EU may be transferred in any amount from one country to another (except that Greece currently has capital controls restricting outflows, and Cyprus imposed capital controls between 2013 and April 2015). All intra-EU transfers in euro are considered as domestic payments and bear

1096-531: A 2019 estimate, because of the single market the GDP of member countries is on average 9 percent higher than it would be if tariff and non-tariff restrictions were in place. One of the core objectives of the European Economic Community (EEC) upon its establishment in 1957 was the development of a common market offering free movement of goods, service, people and capital. Free movement of goods

1233-608: A Belgian law requiring all margarine to be in cube shaped packages infringed article 34, and was not justified by the pursuit of consumer protection. The argument that Belgians would believe it was butter if it was not cube shaped was disproportionate: it would "considerably exceed the requirements of the object in view" and labelling would protect consumers "just as effectively". In a 2003 case, Commission v Italy Italian law required that cocoa products that included other vegetable fats could not be labelled as "chocolate". It had to be "chocolate substitute". All Italian chocolate

1370-475: A Dutch lawyer moved to Belgium while advising a client in a social security case, and was told he could not continue because Dutch law said only people established in the Netherlands could give legal advice. The Court of Justice held that the freedom to provide services applied, it was directly effective, and the rule was probably unjustified: having an address in the member state would be enough to pursue

1507-768: A company from shifting its central administration to Italy while it still operated and was incorporated in Hungary. Thus, the court draws a distinction between the right of establishment for foreign companies (where restrictions must be justified), and the right of the state to determine conditions for companies incorporated in its territory, although it is not entirely clear why. The "freedom to provide services" under TFEU article 56 applies to people who provide services "for remuneration", especially in commercial or professional activity. For example, in Van Binsbergen v Bestuur van de Bedrijfvereniging voor de Metaalnijverheid

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1644-570: A company in the UK could admittedly provide services in Denmark without being established there, and there were less restrictive means of achieving the aim of creditor protection. This approach was criticised as potentially opening the EU to unjustified regulatory competition , and a race to the bottom in standards, like in the US where the state of Delaware attracts most companies and is often argued to have

1781-582: A company moving its seat of business, without infringing TFEU article 49. This meant the Daily Mail newspaper's parent company could not avoid tax by shifting its residence to the Netherlands without first settling its tax bills in the UK. The UK did not need to justify its action, as rules on company seats were not yet harmonised. By contrast, in Centros Ltd v Erhversus-og Selkabssyrelsen

1918-631: A disagreement between the science community and the Dutch government whether niacin in cheese posed a public risk. As public risk falls under article 36, meaning that a quantitative restriction can be imposed, it justified the import restriction against the Eyssen cheese company by the Dutch government. More generally, it has been increasingly acknowledged that fundamental human rights should take priority over all trade rules. So, in Schmidberger v Austria

2055-463: A high level of protection and improvement of the quality of the environment, with also promoting scientific and technological advance. Even as the Lisbon Treaty came into force in 2009, however, some areas pertaining to parts of the four freedoms (especially in the field of services) had not yet been completely opened. Those, along with further work on the economic and monetary union, would see

2192-675: A lawyer from Stuttgart , who had set up chambers in Milan and was censured by the Milan Bar Council for not having registered, should claim for breach of establishment freedom, rather than service freedom. However, the requirements to be registered in Milan before being able to practice would be allowed if they were non-discriminatory, "justified by imperative requirements in the general interest" and proportionately applied. All people or entities that engage in economic activity, particularly

2329-605: A lawyer to the Belgian bar because he lacked Belgian nationality was unjustified. TFEU article 49 says states are exempt from infringing others' freedom of establishment when they exercise "official authority", but this did an advocate's work (as opposed to a court's) was not official. By contrast in Commission v Italy the Court of Justice held that a requirement for lawyers in Italy to comply with maximum tariffs unless there

2466-605: A leading figure behind the communities, resigned from the High Authority in protest and began work on alternative communities, based on economic integration rather than political integration. Following the Messina Conference in 1955, Paul-Henri Spaak was given the task to prepare a report on the idea of a customs union . The so-called Spaak Report of the Spaak Committee formed the cornerstone of

2603-452: A mandatory requirement. Harmonisation would only be used to overcome barriers created by trade restrictions which survived the Cassis mandatory requirements test, and to ensure essential standards where there was a risk of a race to the bottom . Thus, harmonisation was largely used to ensure basic health and safety standards were met. By 1992 about 90% of the issues had been resolved and in

2740-509: A presumption that "selling arrangements" would be presumed to not fall into TFEU article 34, if they applied equally to all sellers, and affected them in the same manner in fact. In Keck and Mithouard two importers claimed that their prosecution under a French competition law , which prevented them from selling Picon beer under wholesale price, was unlawful. The aim of the law was to prevent cut throat competition , not to hinder trade. The Court of Justice held, as "in law and in fact" it

2877-571: Is a customs duty if it is proportionate to the value of the goods; if it is proportionate to the quantity, it is a charge having equivalent effect to a customs duty. There are three exceptions to the prohibition on charges imposed when goods cross a border, listed in Case 18/87 Commission v Germany. A charge is not a customs duty or charge having equivalent effect if: Article 110 of the TFEU provides: No Member State shall impose, directly or indirectly, on

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3014-599: Is also true in the context of the UK's National Health Service . Aside from public services, another sensitive field of services are those classified as illegal. Josemans v Burgemeester van Maastricht held that the Netherlands' regulation of cannabis consumption, including the prohibitions by some municipalities on tourists (but not Dutch nationals) going to coffee shops , fell outside article 56 altogether. The Court of Justice reasoned that narcotic drugs were controlled in all member states, and so this differed from other cases where prostitution or other quasi-legal activity

3151-592: Is called "sund". The Germanic word "sound" is not related to the Romance languages originated word "sound", which has developed from the Latin sonus . 56°N 11°E  /  56°N 11°E  / 56; 11 European single market The European single market , also known as the European internal market or the European common market , is the single market comprising mainly

3288-407: Is hoped to avoid a regulatory " race to the bottom ", while allowing consumers access to goods from around the continent. Free movement of capital was traditionally seen as the fourth freedom, after goods, workers and persons, services and establishment. The original Treaty of Rome required that restrictions on free capital flows only be removed to the extent necessary for the common market. From

3425-419: Is imposed unilaterally on domestic or foreign goods by reason of the fact that they cross a frontier, and which is not a customs duty in the strict sense, constitutes a charge having an equivalent effect... even if it is not imposed for the benefit of the state, is not discriminatory or protective in effect and if the product on which the charge is imposed is not in competition with any domestic product. A charge

3562-601: Is the adoption of harmonising legislation under Article 114 of the Treaty on the Functioning of the European Union (TFEU). The commission also relied upon the European Court of Justice 's Cassis de Dijon jurisprudence, under which member states were obliged to recognise goods which had been legally produced in another member state, unless the member state could justify the restriction by reference to

3699-535: The Capital Movement Directive 1988 , Annex I, 13 categories of capital which must move free are covered. In Baars v Inspecteur der Belastingen Particulieren the Court of Justice held that for investments in companies, the capital rules, rather than freedom of establishment rules, were engaged if an investment did not enable a "definite influence" through shareholder voting or other rights by

3836-653: The Community budget had been correctly spent by the Community's institutions. The ECA provided an audit report for each financial year to the Council and Parliament and gave opinions and proposals on financial legislation and anti-fraud actions. It is the only institution not mentioned in the original treaties, having been set up in 1975. At the time of its abolition, the European Community pillar covered

3973-474: The Court of Justice held that Austria did not infringe article 34 by failing to ban a protest that blocked heavy traffic passing over the A13, Brenner Autobahn , en route to Italy. Although many companies, including Mr Schmidberger's German undertaking, were prevented from trading, the Court of Justice reasoned that freedom of association is one of the "fundamental pillars of a democratic society", against which

4110-531: The Court of Justice held that this rule meant all "trading rules" that are "enacted by Member States" which could hinder trade "directly or indirectly, actually or potentially" would be caught by article 34. This meant that a Belgian law requiring Scotch whisky imports to have a certificate of origin was unlikely to be lawful. It discriminated against parallel importers like Mr Dassonville, who could not get certificates from authorities in France, where they bought

4247-450: The Court of Justice reviewed Swedish bans on advertising to children under age 12, and misleading commercials for skin care products. While the bans have remained (justifiable under article 36 or as a mandatory requirement) the Court emphasised that complete marketing bans could be disproportionate if advertising were "the only effective form of promotion enabling [a trader] to penetrate" the market. In Konsumentombudsmannen v Gourmet AB

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4384-575: The European Communities under the 1965 Merger Treaty (Treaty of Brussels). In 1993 a complete single market was achieved, known as the internal market , which allowed for the free movement of goods, capital, services, and people within the EEC. In 1994 the internal market was formalised by the EEA agreement. This agreement also extended the internal market to include most of the member states of

4521-629: The European Community , continuing to follow the supranational structure of the EEC. The EEC institutions became those of the EU, however the Court, Parliament and Commission had only limited input in the new pillars, as they worked on a more intergovernmental system than the European Communities. This was reflected in the names of the institutions, the council was formally the "Council of the European Union " while

4658-562: The European Free Trade Association ). The six were France, West Germany, Italy and the three Benelux countries: Belgium, the Netherlands and Luxembourg. The first enlargement was in 1973, with the accession of Denmark, Ireland and the United Kingdom. Greece, Spain and Portugal joined in the 1980s. The former East Germany became part of the EEC upon German reunification in 1990. Following the creation of

4795-609: The European Free Trade Association , forming the European Economic Area , which encompasses 15 countries. Upon the entry into force of the Maastricht Treaty in 1993, the EEC was renamed the European Community to reflect that it covered a wider range than economic policy. This was also when the three European Communities, including the EC, were collectively made to constitute the first of the three pillars of

4932-464: The European Union is achieved by a customs union and the principle of non-discrimination. The EU manages imports from non-member states, duties between member states are prohibited, and imports circulate freely. In addition under the Treaty on the Functioning of the European Union article 34, 'Quantitative restrictions on imports and all measures having equivalent effect shall be prohibited between Member States'. In Procureur du Roi v Dassonville

5069-482: The European single market . The European Union Scandinavian–Mediterranean Corridor runs north-south through the Danish straits. Ferries crossed many of the straits but some of these have been replaced with fixed links to reduce journey times. Most significantly, since 1999 the powerhouses of Hamburg and Copenhagen have been linked without the use of ferries. The fixed links include: The Germanic word "sound" has

5206-606: The Eurozone crisis . According to TFEU articles 119 and 127, the objective of the European Central Bank and other central banks ought to be price stability . This has been criticised for apparently being superior to the objective of full employment in the Treaty on European Union article 3. Within the building on the Investment Plan for Europe, for a closer integration of capital markets, in 2015,

5343-809: The Institutions of the ECSC in that the Common Assembly and Court of Justice of the ECSC had their authority extended to the EEC and Euratom in the same role. However the EEC, and Euratom, had different executive bodies to the ECSC. In place of the ECSC's Council of Ministers was the Council of the European Economic Community , and in place of the High Authority was the Commission of the European Communities . There

5480-519: The Scotch . This "wide test", to determine what could potentially be an unlawful restriction on trade, applies equally to actions by quasi-government bodies, such as the former " Buy Irish " company that had government appointees. It also means states can be responsible for private actors. For instance, in Commission v France French farmer vigilantes were continually sabotaging shipments of Spanish strawberries , and even Belgian tomato imports. France

5617-718: The Treaty of Maastricht , now in TFEU article 63, "all restrictions on the movement of capital between the Member States and between Member States and third countries shall be prohibited". This means capital controls of various kinds are prohibited, including limits on buying currency, limits on buying company shares or financial assets, or government approval requirements for foreign investment . By contrast, taxation of capital, including corporate tax , capital gains tax and financial transaction tax , are not affected so long as they do not discriminate by nationality. According to

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5754-490: The Treaty of Rome establishing a European Economic Community. The resulting communities were the European Economic Community (EEC) and the European Atomic Energy Community (EURATOM or sometimes EAEC). These were markedly less supranational than the previous communities, due to protests from some countries that their sovereignty was being infringed (however there would still be concerns with

5891-417: The Treaty of Rome of 1957, aiming to foster economic integration among its member states. It was subsequently renamed the European Community ( EC ) upon becoming integrated into the first pillar of the newly formed European Union (EU) in 1993. In the popular language, the singular European Community was sometimes inaccurately used in the wider sense of the plural European Communities , in spite of

6028-510: The economy of Europe and prevent future war by integrating its members . With the aim of creating a federal Europe two further communities were proposed: a European Defence Community and a European Political Community . While the treaty for the latter was being drawn up by the Common Assembly , the ECSC parliamentary chamber, the proposed defence community was rejected by the French Parliament . ECSC President Jean Monnet ,

6165-496: The free movement of goods among the Member States, was aimed at preventing obstacles to the free movement of goods attributable to "action or inaction" by a Member State. The regulation empowered the Commission to request intervention by a Member State when the actions of private individuals were creating an "obstacle" to free movement of goods. A resolution was adopted by the Council and member state government representatives on

6302-588: The treaties . It was designed to be independent, representing the interest of the Community as a whole. Every member state submitted one commissioner (two from each of the larger states, one from the smaller states). One of its members was the President , appointed by the council, who chaired the body and represented it. Under the Community, the European Parliament (formerly the European Parliamentary Assembly) had an advisory role to

6439-401: The "freedom of establishment" in article 49, and " freedom to provide services " in article 56. In Gebhard v Consiglio dell’Ordine degli Avvocati e Procuratori di Milano the Court of Justice held that to be "established" means to participate in economic life "on a stable and continuous basis", while providing "services" meant pursuing activity more "on a temporary basis". This meant that

6576-415: The 1960s the council also began to meet informally at the level of heads of government and heads of state; these European summits followed the same presidency system and secretariat as the council but was not a formal formation of it. The Commission of the European Communities was the executive arm of the community, drafting Community law , dealing with the day to running of the Community and upholding

6713-656: The 27 member states of the European Union (EU). With certain exceptions, it also comprises Iceland , Liechtenstein , Norway (through the Agreement on the European Economic Area ), and Switzerland (through sectoral treaties ). The single market seeks to guarantee the free movement of goods , capital , services , and people , known collectively as the "four freedoms". This is achieved through common rules and standards that all participating states are legally committed to follow. Any potential EU accession candidates are required to agree to association agreements with

6850-673: The Commission adopted the Action Plan on Building a Capital Markets Union (CMU) setting out a list of key measures to achieve a true single market for capital in Europe, which deepens the existing Banking Union, because this revolves around disintermediated, market-based forms of financing, which should represent an alternative to the traditionally predominant (in Europe) bank-based financing channel. The EU's political and economic context call for strong and competitive capital markets to finance

6987-538: The Community and began the longest application process for any country. With the prospect of further enlargement, and a desire to increase areas of co-operation, the Single European Act was signed by the foreign ministers on 17 and 28 February 1986 in Luxembourg and The Hague respectively. In a single document it dealt with reform of institutions, extension of powers, foreign policy cooperation and

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7124-588: The Community. Prior to 2004, the larger members (France, Germany, Italy and the United Kingdom) have had two Commissioners. In the European Parliament , members are allocated a set number seats related to their population, however these ( since 1979 ) have been directly elected and they sit according to political allegiance, not national origin. Most other institutions, including the European Court of Justice , have some form of national division of its members. There were three political institutions which held

7261-458: The Council agreed part of the necessary instruments for election, deferring details on electoral systems which remain varied to this day. During the tenure of President Jenkins , in June 1979, the elections were held in all the then-members (see 1979 European Parliament election ). The new Parliament, galvanised by direct election and new powers, started working full-time and became more active than

7398-409: The Council and Commission. There were a number of Community legislative procedures , at first there was only the consultation procedure , which meant Parliament had to be consulted, although it was often ignored. The Single European Act gave Parliament more power, with the assent procedure giving it a right to veto proposals and the cooperation procedure giving it equal power with the Council if

7535-467: The Council on Community matters. This replaced the informal parliamentary blocking powers established by the 1979 Isoglucose decision. It also abolished any existing state like Simple Majority voting in the EEC, replacing it with Qualified Majority Voting , a procedure more commonly used in international organisations. The Treaty of Amsterdam transferred responsibility for free movement of persons (e.g., visas , illegal immigration , asylum ) from

7672-609: The Court of Justice found that a UK limited company operating in Denmark could not be required to comply with Denmark's minimum share capital rules. UK law only required £1 of capital to start a company, while Denmark's legislature took the view companies should only be started up if they had 200,000 Danish krone (around €27,000) to protect creditors if the company failed and went insolvent . The Court of Justice held that Denmark's minimum capital law infringed Centros Ltd's freedom of establishment and could not be justified, because

7809-399: The Court reasoned that the prohibition would deter people from buying it: it would have "a considerable influence on the behaviour of consumers" that "affects the access of that product to the market ". It would require justification under article 36, or as a mandatory requirement. In contrast to product requirements or other laws that hinder market access , the Court of Justice developed

7946-535: The Court suggested that a total ban for advertising alcohol on the radio, TV and in magazines could fall within article 34 where advertising was the only way for sellers to overcome consumers' "traditional social practices and to local habits and customs" to buy their products, but again the national courts would decide whether it was justified under article 36 to protect public health. Under the Unfair Commercial Practices Directive ,

8083-538: The Dutch prohibition pursued a legitimate aim to prevent "undesirable developments in securities trading" including protecting the consumer from aggressive sales tactics, thus maintaining confidence in the Dutch markets. In Omega Spielhallen GmbH v Bonn a "laserdrome" business was banned by the Bonn council. It bought fake laser gun services from a UK firm called Pulsar Ltd, but residents had protested against "playing at killing" entertainment. The Court of Justice held that

8220-676: The EC in 1961 as an associate member, however its membership was suspended in 1967 after a coup d'état established a military dictatorship called the Regime of the Colonels . A year later, in February 1962, Spain attempted to join the European Community. However, because Francoist Spain was not a democracy, all members rejected the request in 1964. The four countries resubmitted their applications on 11 May 1967 and with Georges Pompidou succeeding Charles de Gaulle as French president in 1969,

8357-435: The ECSC and Euratom were merged with that of the EEC, creating a single institutional structure governing the three separate Communities. From here on, the term European Communities were used for the institutions (for example, from Commission of the European Economic Community to the Commission of the European Communities ). The Council of the European Communities was a body holding legislative and executive powers and

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8494-532: The EU during the negotiation, which must be implemented prior to accession. In addition, through three individual agreements on a Deep and Comprehensive Free Trade Area (DCFTA) with the EU, Georgia , Moldova , and Ukraine have also been granted limited access to the single market in selected sectors. Turkey has access to the free movement of some goods via its membership in the European Union–Turkey Customs Union . The United Kingdom left

8631-481: The EU economy. The CMU project is a political signal to strengthen the single market as a project of all 28 Member States, instead of just the Eurozone countries, and sent a strong signal to the UK to remain an active part of the EU, before Brexit. As well as creating rights for "workers" who generally lack bargaining power in the market, the Treaty on the Functioning of the European Union or TFEU also protects

8768-609: The EU external border goods may circulate freely between member states. Under the operation of the Single European Act , customs border controls between member states have been largely abandoned. Physical inspections on imports and exports have been replaced mainly by audit controls and risk analysis. Article 30 of the TFEU prohibits not only customs duties but also charges having equivalent effect. The European Court of Justice defined "charge having equivalent effect" in Commission v Italy . [A]ny pecuniary charge, however small and whatever its designation and mode of application, which

8905-420: The EU harmonised restrictions on restrictions on marketing and advertising, to forbid conduct that distorts average consumer behaviour, is misleading or aggressive, and sets out a list of examples that count as unfair. Increasingly, states have to give mutual recognition to each other's standards of regulation, while the EU has attempted to harmonise minimum ideals of best practice. The attempt to raise standards

9042-491: The EU in 1993, it has enlarged to include an additional sixteen countries by 2013. Member states are represented in some form in each institution. The Council is also composed of one national minister who represents their national government. Each state also has a right to one European Commissioner each, although in the European Commission they are not supposed to represent their national interest but that of

9179-507: The EU move further to a European Home Market . The "Four Freedoms" of the single market are: The range of "goods" (or "products") covered by the term "free movement of goods" "is as wide as the range of goods in existence". Goods are only covered if they have economic value, i.e. they can be valued in money and are capable of forming the subject of commercial transactions. Works of art , coins which are no longer in circulation and water are noted as examples of "goods". Fish are goods, but

9316-557: The European Union , which the treaty also founded. The EC existed in this form until it was abolished by the 2009 Treaty of Lisbon , which incorporated the EC's institutions into the EU's wider framework and provided that the EU would "replace and succeed the European Community". In April 1951, the Treaty of Paris was signed, creating the European Coal and Steel Community (ECSC). This was an international community based on supranationalism and international law, designed to help

9453-579: The European institutions until the French veto was reinstated. Eventually, a compromise was reached with the Luxembourg compromise on 29 January 1966 whereby a gentlemen's agreement permitted members to use a veto on areas of national interest. On 1 July 1967, when the Merger Treaty came into operation, combining the institutions of the ECSC and Euratom into that of the EEC, they already shared

9590-417: The European single market on 31 December 2020. An agreement was reached between the UK Government and European Commission to align Northern Ireland on rules for goods with the European single market, to maintain an open border on the island of Ireland . The market is intended to increase competition , labour specialisation , and economies of scale , allowing goods and factors of production to move to

9727-468: The German constitutional value of human dignity , which underpinned the ban, did count as a justified restriction on the freedom to provide services. In Liga Portuguesa de Futebol v Santa Casa da Misericórdia de Lisboa the Court of Justice also held that the state monopoly on gambling, and a penalty for a Gibraltar firm that had sold internet gambling services, was justified to prevent fraud and gambling where people's views were highly divergent. The ban

9864-468: The German government's arguments that the measure proportionately protected public health under TFEU article 36, because stronger beverages were available and adequate labelling would be enough for consumers to understand what they bought. This rule primarily applies to requirements about a product's content or packaging. In Walter Rau Lebensmittelwerke v De Smedt PVBA the Court of Justice found that

10001-557: The Justice and Home Affairs (JHA) pillar to the European Community (JHA was renamed Police and Judicial Co-operation in Criminal Matters (PJCC) as a result). Both Amsterdam and the Treaty of Nice also extended codecision procedure to nearly all policy areas, giving Parliament equal power to the Council in the Community. In 2002, the Treaty of Paris which established the ECSC expired, having reached its 50-year limit (as

10138-558: The Maastricht Treaty in 1993, these institutions became those of the European Union, though limited in some areas due to the pillar structure. Despite this, Parliament in particular has gained more power over legislation and security of the commission. The Court of Justice was the highest authority in the law, settling legal disputes in the Community, while the Auditors had no power but to investigate. The EEC inherited some of

10275-627: The Western and Eastern blocs, other than reconcile Member States such as France and Germany after WW2. The tasks entrusted to the Community were divided among an assembly, the European Parliament, Council, Commission, and Court of Justice. Moreover, restrictions to market were lifted to further liberate trade among Member States. Citizens of Member States (other than goods, services, and capital) were entitled to freedom of movement. The CAP, Common Agricultural Policy, regulated and subsided

10412-416: The agricultural sphere. A European Social Fund was implemented in favour of employees who lost their jobs. A European Investment Bank was established to "facilitate the economic expansion of the Community by opening up fresh resources" (Art. 3 Treaty of Rome 3/25/1957). All these implementations included overseas territories. Competition was to be kept alive to make products cheaper for European consumers. For

10549-564: The aim "to ensure normal conditions of competition and to remove all restrictions of a fiscal nature capable of hindering the free movement of goods within the Common Market". Aspects of the EU Customs area extend to a number of non-EU-member states, namely Andorra , Monaco , San Marino and Turkey, under separately negotiated arrangements. The United Kingdom agreed on a trade deal with the European Union on 24 December 2020, which

10686-427: The area where they are most valued, thus improving the efficiency of the allocation of resources. It is also intended to drive economic integration whereby the once separate economies of the member states become integrated within a single EU-wide economy. The creation of the internal market as a seamless, single market is an ongoing process, with the integration of the service industry still containing gaps. According to

10823-567: The behaviour of the Hallstein Commission ). Germany became a founding member of the EEC, and Konrad Adenauer was made leader in a very short time. The first formal meeting of the Hallstein Commission was held on 16 January 1958 at the Chateau de Val-Duchesse . The EEC (direct ancestor of the modern Community) was to create a customs union while Euratom would promote co-operation in the nuclear power sphere. The EEC rapidly became

10960-582: The commission was formally the "Commission of the European Communities ". There are more competencies listed in Article 3 of the European Communities pillar than there are in Article 3 of the Treaty of Rome. This is due to the fact that some competencies were already inherent in the Treaty of Tome, some were referred to in the Treaty of Rome, and some were extended under Article 235 of the Treaty of Rome. Competencies were added to cover trans-European networks, and

11097-407: The corresponding domestic transfer costs. This includes all member States of the EU, even those outside the eurozone providing the transactions are carried out in euro. Credit/debit card charging and ATM withdrawals within the Eurozone are also charged as domestic; however, paper-based payment orders, like cheques, have not been standardised so these are still domestic-based. The ECB has also set up

11234-465: The costs of receiving treatment in Germany. The Dutch health authorities regarded the treatment as unnecessary, so she argued this restricted the freedom (of the German health clinic) to provide services. Several governments submitted that hospital services should not be regarded as economic, and should not fall within article 56. But the Court of Justice held that health care was a "service" even though

11371-509: The council was not unanimous. In 1970 and 1975, the Budgetary treaties gave Parliament power over the Community budget . The Parliament's members, up-until 1980 were national MPs serving part-time in the Parliament. The Treaties of Rome had required elections to be held once the council had decided on a voting system, but this did not happen and elections were delayed until 1979 (see 1979 European Parliament election ). After that, Parliament

11508-498: The council, Parliament or another party place a request for legislation to the commission. The Commission then drafts this and presents it to the council for approval and the Parliament for an opinion (in some cases it had a veto, depending upon the legislative procedure in use). The commission's duty is to ensure it is implemented by dealing with the day-to-day running of the Union and taking others to Court if they fail to comply. After

11645-418: The customs union, the treaty provided for a 10% reduction in custom duties and up to 20% of global import quotas. Progress on the customs union proceeded much faster than the twelve years planned. However, France faced some setbacks due to their war with Algeria . The six states that founded the EEC and the other two Communities were known as the " inner six " (the "outer seven" were those countries who formed

11782-655: The decision-making mechanisms of the EEC and set a deadline of 31 December 1992 for the completion of a single market. In the end, it was launched on 1 January 1993. The new approach, pioneered at the Delors Commission, combined positive and negative integration, relying upon minimum rather than exhaustive harmonisation. Negative integration consists of prohibitions imposed on member states banning discriminatory behaviour and other restrictive practices. Positive integration consists of approximating laws and standards. Especially important (and controversial) in this respect

11919-610: The environment, press diversity, fairness in commerce, and more: the categories are not closed. In the most famous case Rewe-Zentral AG v Bundesmonopol für Branntwein , the Court of Justice found that a German law requiring all spirits and liqueurs (not just imported ones) to have a minimum alcohol content of 25 per cent was contrary to TFEU article 34, because it had a greater negative effect on imports. German liqueurs were over 25 per cent alcohol, but Cassis de Dijon , which Rewe-Zentrale AG wished to import from France, only had 15 to 20 per cent alcohol. The Court of Justice rejected

12056-404: The executive and legislative power of the EEC, plus one judicial institution and a fifth body created in 1975. These institutions (except for the auditors) were created in 1957 by the EEC but from 1967 onwards they applied to all three Communities. The Council represents the member state governments, the Parliament represents citizens and the Commission represents the European interest. Essentially,

12193-435: The first treaty, it was the only one with a limit). No attempt was made to renew its mandate; instead, the Treaty of Nice transferred certain of its elements to the Treaty of Rome and hence its work continued as part of the EC area of the European Community's remit. After the entry into force of the Treaty of Lisbon in 2009 the pillar structure ceased to exist. The European Community, together with its legal personality ,

12330-524: The following areas; Since the end of World War II , sovereign European countries have entered into treaties and thereby co-operated and harmonised policies (or pooled sovereignty ) in an increasing number of areas, in the European integration project or the construction of Europe ( French : la construction européenne ). The following timeline outlines the legal inception of the European Union (EU)—the principal framework for this unification. The EU inherited many of its present responsibilities from

12467-448: The formal successor institution of the Community. The Community's initial aim was to bring about economic integration, including a common market and customs union , among its six founding members : Belgium , France , Italy , Luxembourg , the Netherlands and West Germany . It gained a common set of institutions along with the European Coal and Steel Community (ECSC) and the European Atomic Energy Community (EURATOM) as one of

12604-419: The free movement of goods had to be balanced, and was probably subordinate. If a member state does appeal to the article 36 justification, the measures it takes have to be applied proportionately . This means the rule must be pursue a legitimate aim and (1) be suitable to achieve the aim, (2) be necessary, so that a less restrictive measure could not achieve the same result, and (3) be reasonable in balancing

12741-410: The freedom to provide services in respect of public works contracts. The Court of Justice has held that secondary education falls outside the scope of article 56, because usually the state funds it, though higher education does not. Health care generally counts as a service. In Geraets-Smits v Stichting Ziekenfonds Mrs Geraets-Smits claimed she should be reimbursed by Dutch social insurance for

12878-436: The government (rather than the service recipient) paid for the service. National authorities could be justified in refusing to reimburse patients for medical services abroad if the health care received at home was without undue delay, and it followed "international medical science" on which treatments counted as normal and necessary. The Court requires that the individual circumstances of a patient justify waiting lists, and this

13015-453: The integration process. It was mentioned in the treaties for the first time in the Single European Act (see below). Greece re-applied to join the community on 12 June 1975, following the restoration of democracy, and joined on 1 January 1981. Following on from Greece, and after their own democratic restoration, Spain and Portugal applied to the communities in 1977 and joined on 1 January 1986. In 1987, Turkey formally applied to join

13152-466: The interests of free trade with interests in article 36. Often rules apply to all goods neutrally, but may have a greater practical effect on imports than domestic products. For such "indirect" discriminatory (or "indistinctly applicable") measures the Court of Justice has developed more justifications: either those in article 36, or additional "mandatory" or "overriding" requirements such as consumer protection , improving labour standards , protecting

13289-691: The intergovernmental negotiations at Val Duchesse conference centre in 1956. Together with the Ohlin Report the Spaak Report would provide the basis for the Treaty of Rome . In 1956, Paul-Henri Spaak led the Intergovernmental Conference on the Common Market and Euratom at the Val Duchesse conference centre, which prepared for the Treaty of Rome in 1957. The conference led to the signature, on 25 March 1957, of

13426-545: The internal market by incorporating the Schengen Area within the competences of the EU. The Schengen Agreement implements the abolition of border controls between most member states, common rules on visas, and police and judicial co-operation. The official goal of the Lisbon Treaty was to establish an internal market, which would balance economic growth and price stability, a highly competitive social market economy , aiming at full employment and social progress, and

13563-406: The internal market, second by creating a European System of Central Banks to co-ordinate common monetary policy, and third by locking exchange rates and introducing a single currency, the euro . Today, 20 member states have adopted the euro , one is in the process of adopting ( Bulgaria ), one has determined to opt-out ( Denmark ) and 5 member states have delayed their accession, particularly since

13700-522: The investor. That case held a Dutch Wealth Tax Act 1964 unjustifiably exempted Dutch investments, but not Mr Baars' investments in an Irish company, from the tax: the wealth tax, or exemptions, had to be applied equally. On the other hand, TFEU article 65(1) does not prevent taxes that distinguish taxpayers based on their residence or the location of an investment (as taxes commonly focus on a person's actual source of profit) or any measures to prevent tax evasion . Apart from tax cases, largely following from

13837-549: The latter designation covering all the three constituent entities of the first pillar. The EEC was also known as the European Common Market (ECM) in the English-speaking countries, and sometimes referred to as the European Community even before it was officially renamed as such in 1993. In 2009, the EC formally ceased to exist and its institutions were directly absorbed by the EU. This made the Union

13974-427: The legitimate aim of good administration of justice. Case law states that the treaty provisions relating to the freedom to provide services do not apply in situations where the service, service provider and other relevant facts are confined within a single member state. An early Council Directive from 26 July 1971 included works contracts within the scope of services, and provided for the abolition of restrictions on

14111-523: The most important of these and expanded its activities. The first move towards political developments came at the end of 1959 when the foreign ministers of the six members announced that would be meeting quarterly to discuss political issues and international problems. One of the first important accomplishments of the EEC was the establishment (1962) of common price levels for agricultural products. In 1968, internal tariffs (tariffs on trade between member nations) were removed on certain products. Another crisis

14248-565: The opinions of Advocate General Maduro , a series of cases held that government owned golden shares were unlawful. In Commission v Germany the Commission claimed the German Volkswagen Act 1960 violated article 63, in that §2(1) restricted any party having voting rights exceeding 20% of the company, and §4(3) allowed a minority of 20% of shares held by the Lower Saxony government to block any decisions. Although this

14385-428: The previous assemblies. Shortly after its election, the Parliament proposed that the Community adopt the flag of Europe design used by the Council of Europe . The European Council in 1984 appointed an ad hoc committee for this purpose. The European Council in 1985 largely followed the committee's recommendations, but as the adoption of a flag was strongly reminiscent of a national flag representing statehood ,

14522-464: The products of other member states any internal taxation of any kind in excess of that imposed directly or indirectly on similar domestic products. Furthermore, no Member State shall impose on the products of other member states any internal taxation of such a nature as to afford indirect protection to other products. In the taxation of rum case , the ECJ stated that: The Court has consistently held that

14659-547: The public interest in collecting taxes, denial of capacity went too far: it was an "outright negation" of the right of establishment. However, in Cartesio Oktató és Szolgáltató bt the Court of Justice affirmed again that because corporations are created by law, they are in principle subject to any rules for formation that a state of incorporation wishes to impose. This meant that the Hungarian authorities could prevent

14796-476: The purpose of Article 90 EC [now Article 110], as a whole, is to ensure the free movement of goods between the member states under normal conditions of competition, by eliminating all forms of protection which might result from the application of discriminatory internal taxation against products from other member states, and to guarantee absolute neutrality of internal taxation as regards competition between domestic and imported products. Free movement of goods within

14933-412: The rest of the developed world, Margaret Thatcher sent Lord Cockfield to the Delors Commission to take the initiative to attempt to relaunch the common market. Cockfield wrote and published a White Paper in 1985 identifying 300 measures to be addressed in order to complete a single market. The White Paper was well received and led to the adoption of the Single European Act , a treaty which reformed

15070-432: The same day, under which the member states agreed to take action where necessary to protect the free movement of goods and other freedoms, and to issue public information where there were disruptions, including their efforts to address obstacles to free movement of goods. The customs union of the European Union removes customs barriers between member states and operates a common customs policy towards third countries, with

15207-466: The same root as the verb to sunder in the meaning of "to separate". The Old Norse form of that verb is sundr . In Norway hundreds of narrow straits separating islands and combining fjords or outer parts of fjords are named "Sund". Another explanation derives "sound" from an ancient verb "sund" in the meaning of to swim. That way a sound is a swimmable strait . In the Swedish language any strait

15344-598: The same year the Maastricht Treaty set about to create an Economic and Monetary Union as the next stage of integration. Work on freedom for services took longer, and was the last freedom to be implemented, mainly through the Posting of Workers Directive (adopted in 1996) and the Directive on services in the internal market (adopted in 2006). In 1997 the Amsterdam Treaty abolished physical barriers across

15481-404: The self-employed, or "undertakings" such as companies or firms, have a right to set up an enterprise without unjustified restrictions. The Court of Justice has held that both a member state government and a private party can hinder freedom of establishment, so article 49 has both "vertical" and "horizontal" direct effect. In Reyners v Belgium the Court of Justice held that a refusal to admit

15618-527: The single market. It came into force on 1 July 1987. The act was followed by work on what would be the Maastricht Treaty , which was agreed on 10 December 1991, signed the following year and coming into force on 1 November 1993 establishing the European Union, and paving the way for the European Monetary Union . The EU absorbed the European Communities as one of its three pillars . The EEC's areas of activities were enlarged and were renamed

15755-427: The social welfare system or public safety in their chosen member state. This required reduction of administrative formalities and greater recognition of professional qualifications of other states. Fostering the free movement of people has been a major goal of European integration since the 1950s. European Economic Community The European Economic Community ( EEC ) was a regional organisation created by

15892-419: The topic. For example, if agriculture was being discussed, the council would be composed of each national minister for agriculture. They represented their governments and were accountable to their national political systems. Votes were taken either by majority (with votes allocated according to population) or unanimity. In these various forms they share some legislative and budgetary power of the Parliament. Since

16029-405: The use of a product, this can also infringe article 34. So, in a 2009 case, Commission v Italy , the Court of Justice held that an Italian law prohibiting motorcycles or mopeds from pulling trailers infringed article 34. Again, the law applied neutrally to everyone, but disproportionately affected importers, because Italian companies did not make trailers. This was not a product requirement, but

16166-584: The veto was lifted. Negotiations began in 1970 under the pro-European UK government of Edward Heath , who had to deal with disagreements relating to the Common Agricultural Policy and the UK's relationship with the Commonwealth of Nations . Nevertheless, two years later the accession treaties were signed so that Denmark, Ireland and the UK joined the Community effective 1 January 1973. The Norwegian people had rejected membership in

16303-495: The work of the Culture Committee and Education Committee that were previously sharing existing competencies. The only entry in Article 3 that represented something new is the competence covering the entry and movement of persons in the internal market. However, after the Treaty of Maastricht, Parliament gained a more formal role. Maastricht brought in the codecision procedure , which gave it equal legislative power with

16440-470: The worst standards of accountability of boards, and low corporate taxes as a result. Similarly in Überseering BV v Nordic Construction GmbH the Court of Justice held that a German court could not deny a Dutch building company the right to enforce a contract in Germany on the basis that it was not validly incorporated in Germany. Although restrictions on freedom of establishment could be justified by creditor protection, labour rights to participate in work, or

16577-523: Was absorbed into the newly consolidated European Union which merged in the other two pillars (however Euratom remained distinct). This was originally proposed under the European Constitution but that treaty failed ratification in 2005. The main aim of the EEC, as stated in its preamble, was to "preserve peace and liberty and to lay the foundations of an ever closer union among the peoples of Europe". Calling for balanced economic growth, this

16714-473: Was an agreement with a client was not a restriction. The Grand Chamber of the Court of Justice held the commission had not proven that this had any object or effect of limiting practitioners from entering the market. Therefore, there was no prima facie infringement freedom of establishment that needed to be justified. In regard to companies, the Court of Justice held in R (Daily Mail and General Trust plc) v HM Treasury that member states could restrict

16851-431: Was an equally applicable "selling arrangement" (not something that alters a product's content ) it was outside the scope of article 34, and so did not need to be justified. Selling arrangements can be held to have an unequal effect "in fact" particularly where traders from another member state are seeking to break into the market, but there are restrictions on advertising and marketing. In Konsumentombudsmannen v De Agostini

16988-464: Was composed of one judge per state with a president elected from among them. Its role was to ensure that Community law was applied in the same way across all states and to settle legal disputes between institutions or states. It became a powerful institution as Community law overrides national law. The fifth institution is the European Court of Auditors . Its ensured that taxpayer funds from

17125-404: Was controversial, the "flag of Europe" design was adopted only with the status of a "logo" or "emblem". The European Council, or European summit, had developed since the 1960s as an informal meeting of the Council at the level of heads of state. It had originated from then- French President Charles de Gaulle 's resentment at the domination of supranational institutions (e.g. the commission) over

17262-526: Was elected every five years. In the following 20 years, it gradually won co-decision powers with the Council over the adoption of legislation, the right to approve or reject the appointment of the Commission President and the commission as a whole, and the right to approve or reject international agreements entered into by the Community. The Court of Justice of the European Communities was the highest court of on matters of Community law and

17399-416: Was established in principle through the customs union between its then- six member states . However, the EEC struggled to enforce a single market due to the absence of strong decision-making structures. Because of protectionist attitudes, it was difficult to replace intangible barriers with mutually recognized standards and common regulations. In the 1980s, when the economy of the EEC began to lag behind

17536-399: Was greater difference between these than name: the French government of the day had grown suspicious of the supranational power of the High Authority and sought to curb its powers in favour of the intergovernmental style Council. Hence the council had a greater executive role in the running of the EEC than was the situation in the ECSC. By virtue of the Merger Treaty in 1967, the executives of

17673-825: Was liable for these hindrances to trade because the authorities "manifestly and persistently abstained" from preventing the sabotage. Generally speaking, if a member state has laws or practices that directly discriminate against imports (or exports under TFEU article 35) then it must be justified under article 36, which outlines all of the justifiable instances. The justifications include public morality , policy or security, "protection of health and life of humans , animals or plants", "national treasures" of "artistic, historic or archaeological value" and "industrial and commercial property". In addition, although not clearly listed, environmental protection can justify restrictions on trade as an over-riding requirement derived from TFEU article 11. The Eyssen v Netherlands c ase from 1981 outlined

17810-423: Was made from cocoa butter alone, but British, Danish and Irish manufacturers used other vegetable fats. They claimed the law infringed article 34. The Court of Justice held that a low content of vegetable fat did not justify a "chocolate substitute" label. This was derogatory in the consumers' eyes. A "neutral and objective statement" was enough to protect consumers. If member states place considerable obstacles on

17947-546: Was not an impediment to the actual purchase of shares, or receipt of dividends by any shareholder, the Court of Justice 's Grand Chamber agreed that it was disproportionate for the government's stated aim of protecting workers or minority shareholders. Similarly, in Commission v Portugal the Court of Justice held that Portugal infringed free movement of capital by retaining golden shares in Portugal Telecom that enabled disproportionate voting rights, by creating

18084-896: Was proportionate as this was an appropriate and necessary way to tackle the serious problems of fraud that arise over the internet. In the Services Directive a group of justifications were codified in article 16 that the case law has developed. In May 2015 the Juncker Commission announced a plan to reverse the fragmentation of internet shopping and other online services by establishing a Single Digital Market that would cover digital services and goods from e-commerce to parcel delivery rates, uniform telecoms and copyright rules. The free movement of people means EU citizens can move freely between member states for whatever reason (or without any reason) and may reside in any member state they choose if they are not an undue burden on

18221-416: Was signed by Prime Minister Boris Johnson on 30 December 2020. Article 30 of the Treaty on the Functioning of the European Union ("TFEU") prohibits border levies between member states on both European Union Customs Union produce and non-EUCU (third-country) produce. Under Article 29 of the TFEU, customs duty applicable to third country products are levied at the point of entry into EUCU, and once within

18358-431: Was subject to restriction. If an activity does fall within article 56, a restriction can be justified under article 52 or over-riding requirements developed by the Court of Justice. In Alpine Investments BV v Minister van Financiën a business that sold commodities futures (with Merrill Lynch and another banking firm) attempted to challenge a Dutch law prohibiting cold calling customers. The Court of Justice held

18495-476: Was thus the main decision-making body of the Community. Its Presidency rotated between the member states every six months and it is related to the European Council , which was an informal gathering of national leaders (started in 1961) on the same basis as the council. The council was composed of one national minister from each member state. However the Council met in various forms depending upon

18632-720: Was to be accomplished through: Citing Article 2 from the original text of the Treaty of Rome of the 25th of March 1957, the EEC aimed at "a harmonious development of economic activities, a continuous and balanced expansion, an increase in stability, an accelerated raising of the standard of living and closer relations between the States belonging to it". Given the fear of the Cold War, many Western Europeans were afraid that poverty would make "the population vulnerable to communist propaganda" (Meurs 2018, p. 68), meaning that increasing prosperity would be beneficial to harmonise power between

18769-518: Was triggered in regard to proposals for the financing of the Common Agricultural Policy , which came into force in 1962. The transitional period whereby decisions were made by unanimity had come to an end, and majority-voting in the council had taken effect. Then- French President Charles de Gaulle 's opposition to supranationalism and fear of the other members challenging the CAP led to an "empty chair policy" whereby French representatives were withdrawn from

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