The Four Freedoms of the European Common Market and their Meta-Level


Academic Paper, 2020

13 Pages, Grade: 4,75 / 5

Anonymous


Excerpt

Table of Content

1. Introduction
1.1. The Reasons for establishing Free Trade

2. The Free Movement of Goods
2.1. The Scope of the Free Movement of Goods
2.2. The internal Dimension
2.3. The external Dimension
2.4. Conclusion

3. The Free Movement of Persons
3.1. The personal Scope
3.2. Free Movement of Workers
3.3. Freedom of Establishment
3.4. Conclusion

4. The Freedom to provide and receive Services
4.1. The Scope of the Freedom of Services
4.2. Conclusion

5. The Free Movement of Capital
5.1. The Scope of the Freedom of Capital
5.2. Conclusion

6. The Meta-Level of the Four Freedoms

7. Annex
7.1. List of References
7.2. List of Legislation

1. Introduction

In our daily life it seems to be normal that we can travel from one European Member State to another without any passport or custom control; that we can live, work, study and do business everywhere in the EU. In every Member State at least more than two-thirds and overall 81% support the related Freedom of "Free Movement of Persons”.1 The Freedom of Movement of Persons is one of the "Four Freedoms” that are fundamental for the EU.

The Four Freedoms refer to the creation of the Common Market which is one of the central purposes of the European Union. The Common Market is defined in Article 26 (2) TFEU as "an area without internal frontiers in which the free movement of goods, persons, services and capital is ensured in accordance with the provisions of the Treaties.”

1.1. The Reasons for establishing Free Trade

But why is free trade such an important element of the development of the EU? Why not seal of national borders, keep out foreign goods and protect the national industries and jobs?

Free trade allows for specialization which leads to comparative advantage, comparative advantage leads to economies of scale which increase welfare and grantee the most efficient allocation of resources.2

The concept of comparative advantage and historical considerations after the World War II about inter-state cooperation to prevent armed conflicts in Europe were the main ideas behind the trigger of the evolution of the Common European Market.

The European Common Market is based on the following Four Freedoms:

2. The Free Movement of Goods

The Free Movement of Goods is descripted by the European Commission itself as "one of the success stories of the European project.”3 In the internal dimension the Union shall include "the prohibition between Member States of custom duties on imports and exports and of all charges having equivalent effect”4 and in the external dimension "the adoption of a common custom tariff in their relations with third countries.”5

2.1. The Scope of the Free Movement of Goods

There must be three conditions satisfied to apply the provisions on goods:

- The product must be considered a good: "can be valued in money and which are capable, as such, of forming the subject of commercial transaction”6
- The good must be used in cross-border trade in between the Union
- The Person (whom the provision is being applied) must be an addressee of the Treaties7

2.2. The internal Dimension

As already stated, the internal dimension focus on the movements of goods between Member States and prohibits customs duties or other charges.8

While Articles 28 ff. and Article 110 TFEU prohibit fiscal discrimination of imports and exports, their trade is also prevented from imposing quantitative restrictions or other measures with equivalent effects.9 10

The Article 36 TFEU gives limitation to the provisions made in Articles 34 and 35 in regard to "public morality, public policy or public security; the protection of health and life of humans, animals or plants; the protection of national treasures possessing artistic, historic or archaeological value; or the protection of industrial and commercial property.”9 10 11

In addition, the Member States were committed to abolish state monopolies to ensure the frictionless harmonization of the Single Market.12

2.3. The external Dimension

Article 206 TFEU introduces the object of harmonize the development of world trade by abolition restrictions on international trade and investment including lowering customs or other barriers.13

The EU shall comprise a custom union with a "common customs tariff”.14 After entering the Union the Articles 34 ff. also apply to products from third countries which are in "free circulation”.15 16 17 Products are in free circulation if "the import formalities have been complied with and any customs duties or charges having equivalent effect which are payable have been levied in that Member State, and if they have not benefited from a total or partial drawback of such duties or charges.”16 17

2.4. Conclusion

The Free Movement of Goods incorporates with many policies to guarantees easy access to products. The guide "Free movement of goods” published by the European Commission explained that the principle of the Free Movement of Goods has been a key element in creating and developing the Internal Market. "However, the free movement of goods is not an absolute value. [...] It is thus a constant task [...] to reconcile different, sometimes competing, goals and to ensure that a balanced, proportionate approach is taken.”18

3. The Free Movement of Persons

The ability to move freely from one state to another is a distinguishing feature of a common market. This Freedom of Movement for the purpose of work is established within Articles 45 ff. TFEU and the right of establishment is given by Articles 49 ff. TFEU.

The origin reason to include the right of Free Movement within the Union was to ensure a better allocation of the production factor labor to gain equalization in the general price level. Over the time by new legislation a gradual erosion between economic activity and free movement could be observed. This got fundamental in the Treaty of Maastricht which leads to a change in perspective with the status "Citizen of the Union”.19

3.1. The personal Scope

To be included in the Freedom of Movement several conditions must be fulfilled: • The concerning person must be a national of one Member State

- The Person must be engaged in economic activity
- The Person must be classified as a worker or self-employed
- An interstate Element is required20

The Treaty distinguish between free movement of "Workers” concerning employees (Articles 45 ff. TFEU) and the Freedom of "Establishment” concerning self-employed and companies (Articles 49 ff. TFEU).21

3.2. Free Movement of Workers

The Union guarantees three primary rights for Workers in Article 45 TFEU:

- Workers should enjoy the right of Free Movement
- Discrimination based on nationality is prohibited
- Workers are free to accept offers of employment

In conclusion the Treaty interdict any discrimination in access and exercise of employment and postulate equal treatment including taxation and social advantages.22 The Free Movement of Workers is also object of limitations justified on grounds of public policy, public security or public health23 and does not apply to employment in the public service.24

[...]


1 The European Commission (2019). Standard Eurobarometer 91: Public opinion in the European Union. Brussels, Belgian. Annex, p. T93

2 Cf. Mankiw and Taylor (2019). Economics (5th ed.). Hampshire, England: Cengage. pp. 372375

3 The European Commission (2010). Free movement of goods: Guide to the application of Treaty provisions governing the free movement of goods. Brussels, Belgian. p. 8

4 Article 28 (1) TFEU

5 Ibid.

6 Commission v Italy (1968). Case 7/68. (the art treasures case)

7 Cf. Barnard, C. (2010). The substantive law of the EU: the four freedoms (3rd ed.). Oxford, England: Oxford Univ. Press. pp. 33 ff.

8 Cf. Arnull, A. (2017). European Union Law: A very Short Introduction. Oxford, England: Oxford Univ. Press. p. 6

9 Cf. Articles 34-35 TFEU

10 Cf. Barnard, C. (2010). The substantive law of the EU: the four freedoms (3rd ed.). Oxford, England: Oxford Univ. Press. p. 36

11 Article 36 TFEU

12 Cf. Woods, L. (2014). Steiner & Woods: EU Law (12th ed.). Oxford, England: Oxford Univ. Press. p. 346

13 Cf. Barnard, C. (2010). The substantive law of the EU: the four freedoms (3rd ed.). Oxford, England: Oxford Univ. Press. p. 37 ff.

14 Article 28 (1) TFEU

15 Cf. Arnull, A. (2017). European Union Law: A very Short Introduction. Oxford, England: Oxford Univ. Press. p. 6

16 Article 29 TFEU

17 Cf. Woods, L. (2014). Steiner & Woods: EU Law (12th ed.). Oxford, England: Oxford Univ. Press. p. 347

18 The European Commission (2010). Free movement of goods: Guide to the application of Treaty provisions governing the free movement of goods. Brussels, Belgian. p. 8

19 Cf. Barnard, C. (2010). The substantive law of the EU: the four freedoms (3rd ed.). Oxford, England: Oxford Univ. Press. pp. 417 ff.

20 Cf. Barnard, C. (2010). The substantive law of the EU: the four freedoms (3rd ed.). Oxford, England: Oxford Univ. Press. pp. 226 ff.

21 Cf. ibid. pp. 262 ff.

22 Cf. Barnard, C. (2010). The substantive law of the EU: the four freedoms (3rd ed.). Oxford, England: Oxford Univ. Press. pp. 269 ff.

23 Cf. Article 45 (3) TFEU

24 Cf. Article 45 (4) TFEU

Excerpt out of 13 pages

Details

Title
The Four Freedoms of the European Common Market and their Meta-Level
College
Vrije University Brussel
Grade
4,75 / 5
Year
2020
Pages
13
Catalog Number
V995328
ISBN (eBook)
9783346370747
Language
English
Tags
four, freedoms, european, common, market, meta-level
Quote paper
Anonymous, 2020, The Four Freedoms of the European Common Market and their Meta-Level, Munich, GRIN Verlag, https://www.grin.com/document/995328

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