Summary: Institutional And Substantive Law Of The Eu

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• Introduction Internal Market (Week 1)

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• Why the internal market? What is the rationale of the internal market?

  • IDEOLOGY  -> No more war (establishment of ECSC )

  
  

  • SELF INTEREST (ECONOMIC) -> BUT: give in some of sovereignty

  
  

  • Free trade protects Member State from another Member State's protectionism (which will economically benefit them)

  
  

  • Wealth of Nations (Adam Smith)
  • font-sizeLeutwiler Report -> WTO  
    

• Comparative advantage   (+) on common market 

  • Riccardo (1817) -> Cloth and wine example
    
  • (Spaak Report 1956 -> ECSC) --> On the functioning of the common market
    
  • When a country produces 'everything', it is not necessarily more efficient
  • With CA: Countries focus on their specialty and are more efficient producing one product in which they thrive instead of two in which they do not. --> increase in size of production 

  
  
  
  

• Comparative advantage (-) on common market 

  Why do ideal situations almost never occur?
  
  

  • Trade barriers
  • Information failure
  • Transaction costs
  • Buyers and seller act rationally
  • Difficult market access due to diverging local regulations   

• From a Common Market to a Single Market(The internal market towards 'a perfect world')

  • Market integration
    

  
  

  • Banning protectionism

  
  

  • Ban on quantitive restrictions + MEQRS (measures)

  
  

  • Ban on discriminatory national taxes

  
  

  • Harmonization of labour law, pensions, diploma requirements

  
  
  

  • Ban on anti-competitive behavior

  1. Of States
  2. Of companies

• Stages of economic integration (<)

  1. Free Trade
     
  2. Customs Union
  3. Common Market
  4. Economic Union (Single Market)
  5. Political Union

• Completing the Internal Market: Single European Act (2)

  • 1986
  • New legal basis (Art. 114, (115) + 26, 27 TFEU)
  • Introduction QMV (prior: Unanimous)
  • From common market --> single market --> internal market
  • Deadline: 31st December 1992 --> But ever evolving process

• Integration process of the Internal Market

  • Monnet Method (Neofuntionalism)
    
  • Spill-over effects (political, economic, cultural)

• Positive vs. Negative integration regarding the shift--> from a Common Market to a Single Market 

  Positive (market integration): This refers to the creation of a common sovereignty through the modification of existing institutions and the creation of new ones.
  

  • Harmonization
  • Modification of existing policies
  • Joint execution of powers

  
  
  
  Negative (market integration): This implies the elimination of barriers that restrict the movement of goods, services and factors of production.
  

  • Eliminating obstacles
  • Removal of discriminatory behavior
  • CJEU, Gaston Schul, case 15/81

  
  
  
  The internal market is NOT either/or --> it is always a mix and balance (yin/yang)

• Full Harmonization with direct effect law obligation 

  • Consumer or company, MS  cannot blame national government for issuing certain legislation based on the four freedoms
  • Because it is the EU top-down (total power) telling the member sates to act in a certain way
  • Direct effect of an EU law obligation

• Alternatives for mutual recognition (Host country control)

  • Host country control: Free movement of services
    

  
  
  —> Host country determines whether foreign service has access to the market
  
  BUT: tempered with a rule of non-discrimination (therefore limited) + country cannot just ban any service or product for protectionist motives