Internal Market - Free Movement of Goods

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  • Created by: Zenab12
  • Created on: 22-04-16 13:15


  • Key concept for EU integration 
  • Runs counter to Eu's aim to achieve a single market
  • To do this; looks to remove all barriers so all MA can trade as if trading in one country 
  • The existence of the 4 freedoms tries to allow this; Movement of - Goods, Capital, Services, Establishment and Persons. 
  • EU trying to harmonise laws and standards 
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Tariff and Customs Duties (CD)

  • Cutomes Union established by Art 28 - covers all trade in goods
  • Art 30 - prohibits CD and charges having equivalent effect (CHEE)
  • Makes imported goods more expensive than domestic
  • Van Gend En Loos 1963 - features CD and shows they are unlawful

Charges Having Equivalent Effect (CHEE)

  • Art 28 and 30 also prohibt CHEE
  • Court of Justice made it cleart hat CD was crucial as shown in Com v Italy 1968 - argued defintion of goods, Charge was held to be unlawful as it was on aart and cultural items
  • Scoiaal fonds 1969 - also showed charge for import of diamonds was irrelevent
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Permissable Charges

  • Art 36 TFEU can dergoate from FMOG under certain exceptions
  • The Bersciani case 1976 shows that where there is compulsary health inspection there will be no charge.
  • To get permissable charhe under Art 36 it must be of direct benefit to the importer
  • Rewe-Zentralfinaz case - showed no service was given so charge would have been unlawful
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Internal Taxation - Art 110 TFEU

  • Internal Tax Art 110 - Tries to ensure non-discrimination
  • No internal tax may be imposed where the dometic products are not taxed in the same manner
  • Com v Ireland 1980 - favourable tax terms
  • Art 110 - similar products
  • the MS must treat the domestic and imported product in the same way.
  • if products are found to be in competion with each other then the taxation must be removed
  • Comm v UK 1983 - beer and wine found to be in competion
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Other Barries to FMOG - Qantative Restrictions (QR

  • Art 34 prohibits Quantative Restrictions i.e. quotas + Measures Having Equivalent Effect to QR
  • Art 35 - extends to imports and prohibits them also
  • Geddo v ENTEL 1973  defines QR
  • MEQR also prohibitted Art 34
  • MEQRs are anything that hinders diretly or indirectly goods coming in/trade
  • Dassonville case 1974 - developed formula to define measures known as Dassonville Formula
  • Case of Cassis de Djon 1979 - in which required minimum alochol precentage; added 2 more principles and gave list of requirements; may be able to justify restriction if proportionate Art 34
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The Exceptions - Article 36 TFEU

  • Contains exceptions to MEQR
  • MS must prove that the measure serves an important part + is recognised as valuable by union
  • 1) Public Morality, Public Policy; narrowly contstructed and protecrs interest of state, Public Securtiy; courts are sympathetic on these arguements
  • 2) Protection of Health , Animals, Humans and Plants - most common
  • 3) Protection of National Treasures with artistic, hirstoric and archaeological value - not very common
  • 4) Protection of Industrial and Commercial Property - protects private property
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The Exceptions cont. - Article 36 TFEU

  • Rules were laid down in the Cassis de Dijon case 1979 - there was no valid reason for prohibiton
  • Other mandaroty requirements broaden Art 36 TFEU
  • These can be something that affects imports+exports but has a bigger burden on imports; Cassis case 1979 states thats if is proportionate can be justifed Art 34
  • Function of rules is to make the regulations equal and equality of access to market
  • Keck 1998 case - shows regulation of selling arrangements
  • Keck establ;ished a general rule which is to be applied in the context of equal burdens ; there is no doubt that Keck moved the law forward
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Freedom of Establishment - Article 49

  • Art 49 - Prohibits restriction of freedom of establishment for nationals of MS
  • May work and establish business on a premanent, ongoing basis in another MS
  • Gebhard case 1995 - stated a person may be established in more than one MS
  • Must be able to pursue business as the states nationales would - Reyners v Belgium 1974 - one of the first cases which was vital in creating movement rights especially for the self-employed. Also Held thats non-discrimonation was key in the treaties.
  • Art 54 - companies are to be treated and given same freedoms as the natural person
  • Applies to companies registered in a MS
  • Centros Ltd case 1999 shows this
  • However, R v HM Treasury case 1988 shows that the distinction appears to be based on where the company was originally incorporated
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Restrictions on Establishment

  • If something affects access to the market then it will be restricted - Com v Spain 2011 outlined this
  • Com v France 1986 - shows there was a discrimination where tax breaks offered
  • Com v Ireland 1991 - case where nationalitty requirements on part of idividuals registering vessels in Ireland
  • It may be restricted but only by necessary means in pursuit of a legitimate aim - National Grid case 2011
  • Vale 2012 case - shpws breached measure as it went beyond what was seen to be necessary to achieve aim

Must make distinction between estblishment and services - even though may be narrow to define as the Gebhard case 1995 established

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Freedom to Provide Services - Art 56 TFEU

  • Freedom to proivde services under Art 56
  • Art 57 defines what a service is - must be within the meaning of the Treaties; inc. industrial and commerical activites etc but NOT banking or insurance. That is covered by Free Movement of Capital
  • Van Bindsbergen case 1974 - affirmed Art 56 could be directly effective
  • Should also be 'inter-state' element to case - Koestler 1978 case shows this.
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Recieving Servies

  • Tourism may also be considered as receiving a service rather than giving one as Cowan 1989 case demonstartes.
  • State - funded services can be things such as, Education and Medical Costs
  • Education - students and those of independant means are inc
  • Belgium v Humbel 1988 case
  • They must have sickness insurance and not become a burden on the state - Watts case 2006
  • Com v Italy 1988 shows that there must be equal treatment if a perosn wishes to be self employed in another state similar to Cowan 1989 case.
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What about Immoral or Illegal services?

  • Immoral or illegal services will not be given the freedom to establish themselves in other MS
  • These may be such things as Gambling, Abortion and Prostituion
  • Gambling - Customs case 1994
  • Abortion - Grogan 1991 case
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Objective Justification For Restrictions

  • Art 56 and 57 justify where freedom of services will be restricted
  • Van Binsbergen case sets out requiremnts were restrictions are justified
  • Laval case 2007 - where protection of worker did not justify blockade
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