Freedom of establishment - Justifications
5 important questions on Freedom of establishment - Justifications
What are the needed justifications for freedom of establishment?
- Art 51 para 1 TFEU: public policy, public security, public health
- Unwritten justifications: overriding reasons to the public interest
- Proportionality test
ECJ case C-169/07, judgement of 10 March 2009, Hartlauer. What were the facts of the case?
- According to Austrian law, the establishment of hospitals/ambulatories can be authorised only after an examination of demand
- Hartlauer Handelsgesellschaft mbH, seated in Germany, works in the area of health services; intends to establish a dental ambulatory in Vienna refused
ECJ case C-169/07, judgement of 10 March 2009, Hartlauer. What was the decision of the ECJ?
- Justification of non-discriminatory restriction on grounds of public health
- in order to maintain a balanced high-quality medical or hospital service open to all
- preventing risk of serious harm to the financial balance of social security system
- But: not appropriate for ensuring attainment of the above objectives for lack of coherence of the provision of national law
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ECJ case C-212/97, judgement of 9 March 1999, Centros. What were the facts of the case?
- Couple Bryde have lawfully established and registered a company in England and Wales.
- Refusal of registration of a branch in DK, as company does not pursue economic activity in UK and therefore evades respective provisions of Danish law (payment of minimum share capital)
ECJ case C-212/97, judgement of 9 March 1999, Centros. What was the decision of the ECJ?
- Right to establish a branch also where company does not pursue economic activity in seat MS
- This restriction of choice of economically opportune location for a company not justified by imperative requirements in the general interest.
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