EU Law Semester 2
Seminar 1 Questions
There are 5 fundamental freedoms of EU. Just note that they exist. Focus on free movement of
goods and workers.
Describe a free trade area: removal of internal customs duties and quotas
This is the most common form of integration
• Positives: Bigger market for producers and a bigger choice of products for consumers.
What are the difficulties?
• Each country is still trading with 3rd countries. Countries will have different tariffs. This leads
to 3rd countries only supplying goods to those with the lowest tariffs. The only way to stops
this is to introduce checks at the border (which defeats the point)
Norway Case Study
They operate in a free trade area and a single market with the EU. However they are not part of the
customs union. Countries can choose which they can go in. Often the linear approach is taken
however this is not the case. Norway is an example
Describe a customs union: Common customs tariffs towards 3rd countries. The money gained is used
to police the borders and other projects.
Describe and internal market: Overcoming regulatory differences to facilitate the free movement of
all factors of production between Member States. Article 26(2) TFEU states that ‘the internal market
shall comprise an area without frontiers in which the free movement of goods, persons (this
contains 2 fundamental freedoms), services and capital is ensured in accordance with the provisions
of the Treaties’.
What Frontiers are there:
Physical: Such as stopping goods entering (tariffs) not allowing immigration.
Non Physical: regulatory. Such as different testing standards.
2 Ways to achieve a single market (Positive and Negative integration)
Example: In the 1960’s there was a shortage of construction workers in Germany. Italian workers
moved there to fill this employment gap.
Monetary Union: common currency, this eliminates financial fees. The EU has not fully achieved
this.
Economic Union: some harmonisation of tax policies and budgets. This is not clearly defined. There
is not an example of this as this concept is very politically contentious.
Give some examples of blatant obstacles to free movement:
Customs duties- Article 30
Discriminatory internal taxes: Article 110. Case C-221/06 Stadtgemeinde Frohnleiten [2007] ECR I-
9643.
Quantitative restrictions- Article 34
Discriminatory employment practices- Article 45
Give some examples of other barriers to free movement
Product requirements- Such as different required packaging or testing procedures.
,Qualifications (a different type of discrimination)
Restricted access to e.g. Public Services such as schools or healthcare without payment.
Directive Required.
What is it mean by positive integration
Article 115: analogous powers for harmonisation concerning free movement if persons and direct
taxation but requires unanimity in Council, leading to a political stalemate
(this goes further than 115) Article 114 Save where otherwise provided in the Treaties, the following
provisions shall apply for the achievement of the objectives set out in Article 26. The European
Parliament and the Council shall, acting in accordance with the ordinary legislative procedure and
after consulting the Economic and Social Committee, adopt the measures for the approximation of
the provisions laid down by law, regulation or administrative action in Member States which have as
their object the establishment and functioning of the internal market.
Positive integration’ is a process whereby EU regulation replaces disparate regulation in the same
areas across the Member States.
It seeks to free up trade by homogenising regulation across the Member States e.g. if products have
to meet the same EU safety rules in whichever Member State they are produced then they can be
sold in any Member State.
What is it meant by negative integration
Negative integration allows for continued differences between Member State regulations. However,
it requires Member States to recognise that, although the rules in another
Member State might be different, they pursue the same general aims. Member States are required
to recognise these rules and allow goods made in other Member States, in accordance with those
rules, to be sold on their territory. It is however, open to Member States to justify why in certain
cases, certain goods cannot be sold on their territory e.g. for reasons of consumer protection. It is
then open to the Union to introduce legislation for the whole of the EU on the matter.
Case 120/78 Cassis de Dijon ECLI:EU:C:1979:42: This is the principle of mutual recognition. What’s
good enough for French drinkers is good enough for German drinkers. The Court broadened out the
type of national rules that could be struck down under the treaty prohibitions. It was still open to the
member state to justify the application of their own rules to goods coming from another member
state. the presumption would be that they are allowed to enter.
Old Approach
The commission sought to propose legislation replacing national product standards with equivalent
European Ones.
Practical Problems with the old approach
The diversity of national regulation
Article 115 TFEU required unanimity in Council, leading to a political stalemate
Empty chair crisis (Luxembourg Accords)
The speed of technological innovation
New Approach
The new approach used directives for broad product categories, European Standardisation is moved
to specialist standardisation agencies creating technical standards, The new approach comes with a
decentralised certification system for products
, Commission White Paper
‘Completing the Internal Market’ COM(85)310, 4th June 1985'
Commission White Paper
Integration through ‘negative integration’ i.e. mutual recognition-Positive harmonisation limited to
essential health and safety requirements-Promotion of harmonisation of industrial standards.
The more detailed stuff was moved away from the legislative realm into the specialist
standardisation agencies who don't face the political obstacle. Member states authorised bodies to
carry out product testing and ensure the EU safety certificate.
Case C-376/98 Germany v European Parliament and Council (Tobacco Advertising
I)ECLI:EU:C:2000:544. Does not equate to a general power to regulate the internal market. A
measure adopted under Article 114 TFEU must genuinely have as its object the improvement of the
conditions for the establishment and functioning of the internal market. Any distortion in
competition must be ‘appreciable’
How has the EU’s approach to these types of integration evolved over time
The more detailed stuff was moved away from the legislative realm into the specialist
standardisation agencies who don't face the political obstacle. Member states authorised bodies to
carry out product testing and ensure the EU safety certificate.
Problem Question
Identify barriers to free Movement
Blatant Obstacles
10% customs duty on toy cars entering France.
Quota of 1,500 of toy cars entering Belgium.
Toy tax of 2.5% in both France and Belgium.
Quota of 3000 foreign workers per year into Italy
First refusal given to Italian applicants
Other Obstacles
France requires all products targeted at children to be painted with natural plant based paints only.
Axels cars containing a chemical C-3ST is not suitable
Belgium requires wheels on all toy cars to be stressed 35 times rather than 30 in Germany.
Italian Law requires applicants to have a diploma in toy making recognised by the Italian Union of
Toy-Makers.
Carla is required to pay an additional health surcharge to fund her use of the Italian healthcare
system.
Overcoming barriers to free movement
How might the European Union overcome both types of obstacles to free movement that you have
identified above?
Blatant Obstacles
Article 30 of TFEU bans a customs duty in the internal market
Article 110 TFEU prohibits internal taxes in a member state
Article 34 bans quotas in the internal market.
Seminar 1 Questions
There are 5 fundamental freedoms of EU. Just note that they exist. Focus on free movement of
goods and workers.
Describe a free trade area: removal of internal customs duties and quotas
This is the most common form of integration
• Positives: Bigger market for producers and a bigger choice of products for consumers.
What are the difficulties?
• Each country is still trading with 3rd countries. Countries will have different tariffs. This leads
to 3rd countries only supplying goods to those with the lowest tariffs. The only way to stops
this is to introduce checks at the border (which defeats the point)
Norway Case Study
They operate in a free trade area and a single market with the EU. However they are not part of the
customs union. Countries can choose which they can go in. Often the linear approach is taken
however this is not the case. Norway is an example
Describe a customs union: Common customs tariffs towards 3rd countries. The money gained is used
to police the borders and other projects.
Describe and internal market: Overcoming regulatory differences to facilitate the free movement of
all factors of production between Member States. Article 26(2) TFEU states that ‘the internal market
shall comprise an area without frontiers in which the free movement of goods, persons (this
contains 2 fundamental freedoms), services and capital is ensured in accordance with the provisions
of the Treaties’.
What Frontiers are there:
Physical: Such as stopping goods entering (tariffs) not allowing immigration.
Non Physical: regulatory. Such as different testing standards.
2 Ways to achieve a single market (Positive and Negative integration)
Example: In the 1960’s there was a shortage of construction workers in Germany. Italian workers
moved there to fill this employment gap.
Monetary Union: common currency, this eliminates financial fees. The EU has not fully achieved
this.
Economic Union: some harmonisation of tax policies and budgets. This is not clearly defined. There
is not an example of this as this concept is very politically contentious.
Give some examples of blatant obstacles to free movement:
Customs duties- Article 30
Discriminatory internal taxes: Article 110. Case C-221/06 Stadtgemeinde Frohnleiten [2007] ECR I-
9643.
Quantitative restrictions- Article 34
Discriminatory employment practices- Article 45
Give some examples of other barriers to free movement
Product requirements- Such as different required packaging or testing procedures.
,Qualifications (a different type of discrimination)
Restricted access to e.g. Public Services such as schools or healthcare without payment.
Directive Required.
What is it mean by positive integration
Article 115: analogous powers for harmonisation concerning free movement if persons and direct
taxation but requires unanimity in Council, leading to a political stalemate
(this goes further than 115) Article 114 Save where otherwise provided in the Treaties, the following
provisions shall apply for the achievement of the objectives set out in Article 26. The European
Parliament and the Council shall, acting in accordance with the ordinary legislative procedure and
after consulting the Economic and Social Committee, adopt the measures for the approximation of
the provisions laid down by law, regulation or administrative action in Member States which have as
their object the establishment and functioning of the internal market.
Positive integration’ is a process whereby EU regulation replaces disparate regulation in the same
areas across the Member States.
It seeks to free up trade by homogenising regulation across the Member States e.g. if products have
to meet the same EU safety rules in whichever Member State they are produced then they can be
sold in any Member State.
What is it meant by negative integration
Negative integration allows for continued differences between Member State regulations. However,
it requires Member States to recognise that, although the rules in another
Member State might be different, they pursue the same general aims. Member States are required
to recognise these rules and allow goods made in other Member States, in accordance with those
rules, to be sold on their territory. It is however, open to Member States to justify why in certain
cases, certain goods cannot be sold on their territory e.g. for reasons of consumer protection. It is
then open to the Union to introduce legislation for the whole of the EU on the matter.
Case 120/78 Cassis de Dijon ECLI:EU:C:1979:42: This is the principle of mutual recognition. What’s
good enough for French drinkers is good enough for German drinkers. The Court broadened out the
type of national rules that could be struck down under the treaty prohibitions. It was still open to the
member state to justify the application of their own rules to goods coming from another member
state. the presumption would be that they are allowed to enter.
Old Approach
The commission sought to propose legislation replacing national product standards with equivalent
European Ones.
Practical Problems with the old approach
The diversity of national regulation
Article 115 TFEU required unanimity in Council, leading to a political stalemate
Empty chair crisis (Luxembourg Accords)
The speed of technological innovation
New Approach
The new approach used directives for broad product categories, European Standardisation is moved
to specialist standardisation agencies creating technical standards, The new approach comes with a
decentralised certification system for products
, Commission White Paper
‘Completing the Internal Market’ COM(85)310, 4th June 1985'
Commission White Paper
Integration through ‘negative integration’ i.e. mutual recognition-Positive harmonisation limited to
essential health and safety requirements-Promotion of harmonisation of industrial standards.
The more detailed stuff was moved away from the legislative realm into the specialist
standardisation agencies who don't face the political obstacle. Member states authorised bodies to
carry out product testing and ensure the EU safety certificate.
Case C-376/98 Germany v European Parliament and Council (Tobacco Advertising
I)ECLI:EU:C:2000:544. Does not equate to a general power to regulate the internal market. A
measure adopted under Article 114 TFEU must genuinely have as its object the improvement of the
conditions for the establishment and functioning of the internal market. Any distortion in
competition must be ‘appreciable’
How has the EU’s approach to these types of integration evolved over time
The more detailed stuff was moved away from the legislative realm into the specialist
standardisation agencies who don't face the political obstacle. Member states authorised bodies to
carry out product testing and ensure the EU safety certificate.
Problem Question
Identify barriers to free Movement
Blatant Obstacles
10% customs duty on toy cars entering France.
Quota of 1,500 of toy cars entering Belgium.
Toy tax of 2.5% in both France and Belgium.
Quota of 3000 foreign workers per year into Italy
First refusal given to Italian applicants
Other Obstacles
France requires all products targeted at children to be painted with natural plant based paints only.
Axels cars containing a chemical C-3ST is not suitable
Belgium requires wheels on all toy cars to be stressed 35 times rather than 30 in Germany.
Italian Law requires applicants to have a diploma in toy making recognised by the Italian Union of
Toy-Makers.
Carla is required to pay an additional health surcharge to fund her use of the Italian healthcare
system.
Overcoming barriers to free movement
How might the European Union overcome both types of obstacles to free movement that you have
identified above?
Blatant Obstacles
Article 30 of TFEU bans a customs duty in the internal market
Article 110 TFEU prohibits internal taxes in a member state
Article 34 bans quotas in the internal market.
