6. Free movement of persons

This chapter discusses the law on the free movement of persons in the EU. Free movement of persons is one of the four ‘freedoms’ of the internal market. Original EC Treaty provisions granted free movement rights to the economically active—workers, persons exercising the right of establishment, and persons providing services in another Member State. The Treaty also set out the general principle of non-discrimination on grounds of nationality, ‘within the scope of application of the Treaty’. All these provisions are now contained in the Treaty on the Functioning of the European Union (TFEU). Early secondary legislation granted rights to family members, students, retired persons, and persons of independent means. The Citizenship Directive 2004/38 consolidated this legislation.

3. Preliminary rulings: Article 267 TFEU

This chapter discusses Article 267 of the Treaty on the Functioning of the European Union (TFEU). Article 267 TFEU (ex Article 234 EC) gives the Court of Justice jurisdiction to deliver preliminary rulings on the validity and interpretation of EU law. The primary purpose of Article 267 is to ensure that EU law has the same meaning and effect in all the Member States. Where it considers a decision on a question of EU law is necessary to enable it to give judgment, any court may refer that question to the Court of Justice (the discretion to refer). Where a question of EU law is raised before a national court of last resort, that court must refer it to the Court of Justice (the obligation to refer).

7. Freedom of establishment and freedom to provide and receive services

This chapter focuses upon Article 49 TFEU and the Freedom of establishment and Article 56 TFEU and the Freedom to provide services. The chapter explores the meaning and scope of the concepts including application to both natural and legal persons alongside an analysis of the content of rights afforded and the equal treatment provisions therein. Consideration is also given to derogations to the freedoms on the grounds of public policy, public security, and public health (Articles 52 and 62 TFEU) and the official authority exception within Articles 51 and 62.

4. Direct actions in the Court of Justice of the European Union: Articles 258–260, 263, 265, 277, and 340 TFEU

This chapter discusses articles in the Treaty on the Functioning of the European Union (TFEU) that provide for actions that are brought directly before the Court. Under Articles 258 and 259 TFEU (ex Articles 226 and 227 EC), respectively, the European Commission and Member States may bring enforcement proceedings against a Member State in breach of Treaty obligations. Article 260 TFEU (ex Article 228 EC) requires compliance with the Court’s judgment. Article 263 TFEU (ex Article 230 EC) concerns judicial review of EU acts. The outcome of a successful action is annulment. Article 265 TFEU (ex Article 232 EC) provides for actions against the EU institutions for failure to act.

8. EU competition law: Article 101 and 102 TFEU

Articles 101 and 102 of the Treaty on the Functioning of the European Union (TFEU) prohibit anti-competitive business practices. The European Commission, national competition authorities, and national courts enforce Articles 101 and 102 under powers conferred by Regulation 1/2003. From time to time, the European Commission issues non-binding notices providing clarification of the competition rules. This chapter begins with an outline of Articles 101 and 102 and the rules on enforcement. It then looks at the two Treaty provisions in detail. In broad terms, Article 101 prohibits business agreements or arrangements which prevent, restrict, or distort competition within the internal market and affect trade between Member States whilst Article 102 prohibits, as incompatible with the internal market, any abuse by undertakings in a dominant position within the internal market insofar as it may affect trade between Member States. It should be noted at the outset that ‘dominance’ itself is not prohibited, but only when such dominance is accompanied with abusive behaviour that may affect trade.

5. Free movement of goods

This chapter discusses the law on the free movement of goods in the EU. Free movement of goods is one of the four ‘freedoms’ of the internal market. Obstacles to free movement comprise tariff barriers to trade (customs duties and charges having equivalent effect), non-tariff barriers to trade (quantitative restrictions and measures having equivalent effect), and discriminatory national taxation. The Treaty on the Functioning of the European Union (TFEU) prohibits all kinds of restrictions on trade between Member States. Article 30 (ex Article 25 EC) prohibits customs duties and charges having equivalent effect; Article 34 (ex Article 28 EC) prohibits quantitative restrictions and all measures having equivalent effect; and Article 110 (ex Article 90 EC) prohibits discriminatory national taxation.

2. Supremacy, direct effect, indirect effect, and state liability

This chapter discusses the key concepts within the EU legal order: supremacy, direct effect, indirect effect, and state liability. The doctrine of supremacy dictates that EU law takes precedence over conflicting provisions of national law. If a provision of EU law is directly effective, it gives rise to rights upon which individuals can rely directly in the national court. If an EU measure is not directly effective, a claimant may be able to rely on it through the application of indirect effect, which requires national law to be interpreted in accordance with relevant EU law. State liability gives rise to a right to damages where an individual has suffered loss because a Member State has failed to implement a directive or has committed other breaches of EU law.

1. Origins, institutions, and sources of law

This chapter traces the origins and development of the European Union (EU) and EU law. The European Economic Community (EEC) was created by the European Community Treaty (the EEC Treaty or Treaty of Rome), signed by the six original Member States in 1957. The Treaty on European Union 1992 created the EU, incorporating the EEC, together with two new policy areas, Co-operation on Justice and Home Affairs and Common Foreign and Security Policy. The Treaty of Lisbon amended the two founding Treaties and replaced all references to the ‘European Community’ with ‘European Union’. Together, the two amended Treaties (the Treaty on the Functioning of the European Union (TFEU) and the Treaty on European Union) constitute the Treaties on which the EU is founded. This chapter also looks at the UK’s withdrawal from the EU under Article 50 (Brexit).