Ch 11: internal market and philosophies of market integration (3 models and power to harmonize)
Ch 12: free movement of goods
Lecture 3, 4 & Tutorial 2: Internal Market and removal of Fiscal barriers, FM of goods (art.
26), principle of mutual recognition
3 models of market integration:
o Host country control: decentralized. Rules of country where economic activity
takes place apply
o Harmonized model: centralized. Only one rule, produced by EU
o Home country control: competitive. Rules of country of origin apply
Power to harmonize: (art. 114 TFEU).
o Tobacco Advertising Case:
‘Center of gravity’ argument decisive
Total ban can be used if measure: 1. Eliminates obstacles (also future
ones) 2. Deal with appreciable distortions of competition
o British American Tobacco Investments
Limits Art. 114:
o Only approximation, not creation of new things (necessary link with pre-
existent national rules)
o New competences in other areas unanimity rule (art. 352 TFEU)
Types of harmonization:
o Total: area fully regulated by EU, not leaving any room for divergence of MS.
Standards cannot be challenged by invoking FM rules on regulatory barriers
because of compliance with EU rules
o Minimum: sets minimum standard, MS may introduce higher standards. Non-
harmonized national rules can be challenged by invoking FM rules of
regulatory barriers
Exceptions to harmonization:
o Art. 114(2): NO approximation in fiscal provisions, FM of persons, rights of
employed persons
o Art. 114(3): in areas of… starting point of approximation is ‘high level of
protection’, taking into account new developments based on scientific facts
o Art. 114(4): maintain existent national standards of: topics art. 36 and
environment and working conditions
o Art. 114(5)(6): introduce new different national standards (based on new
scientific evidence)
Ch 12: free movement of goods
Lecture 3, 4 & Tutorial 2: Internal Market and removal of Fiscal barriers, FM of goods (art.
26), principle of mutual recognition
3 models of market integration:
o Host country control: decentralized. Rules of country where economic activity
takes place apply
o Harmonized model: centralized. Only one rule, produced by EU
o Home country control: competitive. Rules of country of origin apply
Power to harmonize: (art. 114 TFEU).
o Tobacco Advertising Case:
‘Center of gravity’ argument decisive
Total ban can be used if measure: 1. Eliminates obstacles (also future
ones) 2. Deal with appreciable distortions of competition
o British American Tobacco Investments
Limits Art. 114:
o Only approximation, not creation of new things (necessary link with pre-
existent national rules)
o New competences in other areas unanimity rule (art. 352 TFEU)
Types of harmonization:
o Total: area fully regulated by EU, not leaving any room for divergence of MS.
Standards cannot be challenged by invoking FM rules on regulatory barriers
because of compliance with EU rules
o Minimum: sets minimum standard, MS may introduce higher standards. Non-
harmonized national rules can be challenged by invoking FM rules of
regulatory barriers
Exceptions to harmonization:
o Art. 114(2): NO approximation in fiscal provisions, FM of persons, rights of
employed persons
o Art. 114(3): in areas of… starting point of approximation is ‘high level of
protection’, taking into account new developments based on scientific facts
o Art. 114(4): maintain existent national standards of: topics art. 36 and
environment and working conditions
o Art. 114(5)(6): introduce new different national standards (based on new
scientific evidence)
