International Bachelor of LAW Program 2019 – 2020
Internal Market Law Course Notes by 18024580 Page 1 of 29
Course Notes
Lecture 1: Introduction to the Common Market
The EU was established by the Treaty of Rome as the European Economic Community (EEC) (1957). The adoption
of the 1987 Single European Act (SEA) introduced the Qualified Majority Voting (QMV). In 2007, Reform Treaties
culminated with the conclusion of the Treaty of Lisbon.
Article 3 TFEU: “The Union shall have exclusive competence in [...] (b) the establishing of the competition rules
necessary for the functioning of the internal market […].
Article 4(2) TFEU: The Union shall have shared competence with the Member States in the principal area
of “(a) internal market […].”.
▪ Foundations of the Common Market
Creation of the EEC
The main purpose of the EEC was the creation of long-term normalized, friendly relations between
Europeans nations after WWII through the liberalization of trade. The EU has ever been just a free trade
area despite pro-Brexit narrative.
Quotes
PERSON QUOTE
Adam Smith, The Wealth “It is the maxim of every prudent master of a family, never to attempt
of Nations [1776]. to make at home what it will cost him more to make than to buy […].
What is prudence in the conduct of every private family, can scarce
be folly in that of a great kingdom”.
T.M.C. Asser, Inaugural “Truly fortunate is the nation, which sets itself the goal of finding the
Address on Commercial means to improve, on a broad scale, all in its current legislation that
Law and Commerce, hampers trade, and especially international trade”.
Amsterdam [1862]
Albert Einstein, ‘The world “The political organization of Europe must be strengthened, and a
as I see it’ [1934] gradual attempt made to abolish tariff barriers. This great end cannot
be achieved by treaties alone. People’s minds must, above all, be
prepared for it. We must awaken in them a sense of solidarity which
does not, as hitherto, stop at frontiers.
▪ Benefits of free trade and David Ricardo’s theory of comparative advantage
No free trading
There’s no agreement between MS to reduce barriers to imports and exports among them.
The Netherlands produces in 5 hours → 1 meter of cloth and in 10 hours → 5 litres of wine.
France produces in 5 hours → 5 litres of wine and in 10 hours → 1 meter of cloth
❖ The total productivity in a working week of 40 hours → 6 meters of cloth and 30 litres of wine.
Free trading
An agreement between two or more MS to reduce barriers to imports and exports among them.
The Netherlands produces in 5 hours → 1 meter of cloth.
France produces in 5 hours → 5 litres of wine.
❖ The total productivity in a working week of 40 hours → 8 meters of cloth and 40 litres of wine.
Both countries will have the time and focus to specialize unto the material they are specialized in.
Internal Market Law Course Notes by 18024580 Page 1 of 29
Course Notes
Lecture 1: Introduction to the Common Market
The EU was established by the Treaty of Rome as the European Economic Community (EEC) (1957). The adoption
of the 1987 Single European Act (SEA) introduced the Qualified Majority Voting (QMV). In 2007, Reform Treaties
culminated with the conclusion of the Treaty of Lisbon.
Article 3 TFEU: “The Union shall have exclusive competence in [...] (b) the establishing of the competition rules
necessary for the functioning of the internal market […].
Article 4(2) TFEU: The Union shall have shared competence with the Member States in the principal area
of “(a) internal market […].”.
▪ Foundations of the Common Market
Creation of the EEC
The main purpose of the EEC was the creation of long-term normalized, friendly relations between
Europeans nations after WWII through the liberalization of trade. The EU has ever been just a free trade
area despite pro-Brexit narrative.
Quotes
PERSON QUOTE
Adam Smith, The Wealth “It is the maxim of every prudent master of a family, never to attempt
of Nations [1776]. to make at home what it will cost him more to make than to buy […].
What is prudence in the conduct of every private family, can scarce
be folly in that of a great kingdom”.
T.M.C. Asser, Inaugural “Truly fortunate is the nation, which sets itself the goal of finding the
Address on Commercial means to improve, on a broad scale, all in its current legislation that
Law and Commerce, hampers trade, and especially international trade”.
Amsterdam [1862]
Albert Einstein, ‘The world “The political organization of Europe must be strengthened, and a
as I see it’ [1934] gradual attempt made to abolish tariff barriers. This great end cannot
be achieved by treaties alone. People’s minds must, above all, be
prepared for it. We must awaken in them a sense of solidarity which
does not, as hitherto, stop at frontiers.
▪ Benefits of free trade and David Ricardo’s theory of comparative advantage
No free trading
There’s no agreement between MS to reduce barriers to imports and exports among them.
The Netherlands produces in 5 hours → 1 meter of cloth and in 10 hours → 5 litres of wine.
France produces in 5 hours → 5 litres of wine and in 10 hours → 1 meter of cloth
❖ The total productivity in a working week of 40 hours → 6 meters of cloth and 30 litres of wine.
Free trading
An agreement between two or more MS to reduce barriers to imports and exports among them.
The Netherlands produces in 5 hours → 1 meter of cloth.
France produces in 5 hours → 5 litres of wine.
❖ The total productivity in a working week of 40 hours → 8 meters of cloth and 40 litres of wine.
Both countries will have the time and focus to specialize unto the material they are specialized in.
