Internal Market

The European single market is the common internal market of the Member States of the European Union, which officially exists under this name since 1 January 1993. According to the German Federal Ministry of Economic Affairs, the European single market with the enlargement of the European Union to 28 Member States of the largest single market in the world.

• 2.1 addressee of the fundamental freedoms
• 2.2 Protection Obligations
• 2.3 enforcement problems

• 3.1 Tax Law
• 3.2 Harmonisation of technical standards and product approvals
• 3.3 Freedom to provide services
• 3.4 Professional Qualifications
• 3.5 " negative" and "positive" integration

• 5.1 origins
• 5.2 Genscher-Colombo initiative and the Single European Act
• 5.3 A new approach
• 5.4 Schengen Agreement
• 5.5 Transitional provisions on accession of new states

The four fundamental freedoms

The four fundamental freedoms form the basis of the internal market of the European Union. Their legal basis is to be found in the Treaty on the Functioning of the European Union ( TFEU).

Free movement of goods

The trade between Member States is generally subject to restrictions. The relevant provisions are contained in article 28 TFEU ( Customs Union ), Article 30 TFEU (prohibition of import and export duties and charges having equivalent effect ) and in Article 34 and Article 35 TFEU ( prohibition of quantitative restrictions on imports and exports and measures having equivalent effect ).

• ECJ cases with respect to the free movement of goods: Dassonville, Cassis de Dijon and Keck decision

Persons

In addition to the general freedom of movement for EU citizens under Article 21 TFEU specific expressions exist 49 TFEU in the form of the free movement of workers in Article 45 TFEU and the freedom of establishment within the Union in Art.

• ECJ cases with respect to the free movement of workers: Bosman ruling, Angonese rating
• ECJ cases relating to freedom of establishment: Centros, Seering, Inspire Art ( letter box entity )

A distinction is the free movement of persons from the outdoors in accordance with Article 67 et seq TFEU relating to third -country nationals.

Freedom to provide services

This is to ensure that every entrepreneur must offer with establishment in a Member State of the EU its services in the other Member States and to perform. Governed she is 56 TFEU Art.

• ECJ cases relating to freedom to provide services: Luisi and Carbone

Free movement of capital and payments

The free movement of capital and payments allowed the transfer of funds and securities at any height not only between Member States but also between Member States and third countries ( Article 63 TFEU ). A special feature of this freedom is that it applies in principle also for third country nationals, but restrictions are possible.

• ECJ cases with respect to the free movement of capital and freedom of payments: VW Law Bordessa Konle Sanz de Lera and Verkooijen

Effects of the fundamental freedoms

Addressee of the fundamental freedoms

Addressees of fundamental freedoms are mainly the Member States (both the legislative bodies, as well as the authorities and courts ). To truly realize these freedoms, but a harmonization of the laws is often necessary. Due to the fundamental freedoms and the institutions of the European Union are bound. Even private action is concerned, if the state must be imputed to the privately organized action. Furthermore, there is a direct effect on third parties, if private organizations have a special collective power, such as sports clubs (see Bosman ruling ) and, according to recent case law of the ECJ and trade unions.

Protection obligations

For example, in German law, a claim against the state is derived to protection from unlawful interference with private ( third-party effect of fundamental rights ) of the fundamental rights of freedom under certain conditions. Such effects may also be the fundamental freedoms of the European Union unfold.

The rules on individual freedoms certain that a restriction on the fundamental freedom " forbidden". The term " prohibited " also allows for a further understanding of meaning that restrictions on those freedoms, regardless of their origin should generally be prevented and that ultimately a comprehensive guarantee of fundamental freedoms is sought. Given that each Member State is obliged to take all appropriate measures to fulfill its obligations under European law (Article 4 paragraph 3 of the EU Treaty), under certain conditions claims against the State for protection against unlawful interference Private can be derived.

An example is the right of free movement of goods: trade barriers may arise not only from the Member States or the European Union, but also from private individuals. In this context, the ECJ has 1997 France condemned the French police took no action against the looting of Spanish truck in agricultural products.

According to this judgment, the Member States and the institutions of the European Union are potentially liable in their capacity to take action against restrictions on fundamental freedoms by individuals. But this is true only if do not move the impairing actions of the private sector in the legitimate exercise of fundamental rights. If there is such an obligation to protect the fundamental freedoms can get the vulnerable individual rights.

The patent application follows in its dogmatic structure principle the right of defense. However, Member States have, unlike in the defense legal protection in this constellation has a wide discretion as to whether and what action they are setting. However, we must ensure not make unreasonable judgments. The same applies to the measure selection. In that regard, European law only to assess whether the achievement of objectives appropriate measures have been taken, which may not be manifestly inappropriate. Among the Member States can also not be required a certain success. Unlike the defensive right the property right is therefore mediated at least according to the conventional view only a kind of " Wesentlichkeitsschutz ".

Specifically, the ECJ protection obligations of the Member States has been answered in the affirmative only for the movement of goods. For the assumption that protection obligations but derive from all fundamental freedoms, first, the fact that based on teleological aspects of interpretation for all fundamental freedoms can be done in the same way and that the fundamental freedoms have dogmatically largely developed in parallel and a marked tendency to unifying interpretation by the ECJ is. Furthermore, they possess an identical objective. Nevertheless great reluctance with regard to the adoption of such duties to protect is displayed. These are possible only under strict conditions, some of which were identified by the ECJ ( on state discretion, evidence control, persistent, obvious repudiation ), but will continue to develop.

Enforcement problems

Each Member State is trying to undermine these freedoms to protect its own population and economic or other interests. The occasion case is often only a limited time. If the European Court invoked in this case, which often takes longer but so that at sentencing the occasion case is no longer relevant, the Member State but has enforced its interest in the meantime. Examples can be found in agriculture or in industry.

Alignment in the European internal market

The European internal market is not completed solely by the four freedoms. These various measures at the European level are necessary, which have already been taken, or to which the Member States did not yet agree.

The following sections discuss examples of some areas of law that are relevant for the European internal market.

Tax law

The abolition of customs barriers inside and outside the Common Customs Tariff, the European internal market, a customs union dar. to a full realization of equal market conditions throughout the European Union, a complete harmonization (alignment ) of excise duty would be required. Since Article 113 in this matter calls for unanimous decisions, such harmonization appears difficult to enforce. Therefore, the Member States of the European Union continue to apply different tariffs for consumption taxes, and there are commercial goods no longer the customs authorities, but the tax authorities responsible for the collection and allocation of the different taxes at the inland limit is exceeded. Used for this purpose the tax identification number ( VAT ID ).

In the private goods is, however, waives the collection of various taxes; Here the goods will simply be taxed in the country of origin. This allows consumers (especially near the border ) for the purchase of different tax rates benefit.

Harmonization of technical standards and product approvals

The same applies to the movement of goods: the individual Member States shall introduce into their national legislation a variety of demands on the products that are intended for sale, before (eg safety ).

The European Court has spoken to in its Cassis de Dijon decision that the goods according to regulations made ​​in an EU Member State may be sold in all other Member States. However, it does allow exceptions if they are necessary for compelling reasons.

This judgment can also have undesirable consequences:

• On the one hand can continue to constitute a restriction on the internal market existing, different rules and
• On the other hand, the country of origin principle associated with the Cassis de Dijon decision lead to a competitive advantage for those States applying very liberal regulations.

Therefore, an approximation of the rules was pursued. To this end, among other things, European standards (EN) have been developed and adopted policies that led to the dismantling of barriers to trade between Member States of the European Union.

In February 2008 the European Parliament adopted based on an agreement with the Council of the European Union, a legislative package to strengthen the free movement of goods within the internal market. In particular, the principle of mutual recognition is strengthened, which means that an approved product in a Member State must also be approved by the authorities of other countries for sale.

Freedom to provide services

While the Treaty on the Functioning of the European Union prohibits discrimination based on nationality, but providers who are established in a Member State may not readily provide their services in other Member States, but the necessary formalities must be respected by national law. Among other things, the controversial European Services Directive is here contribute to liberalization.

Professional qualifications

The fundamental freedoms are intended to enable workers and entrepreneurs to fulfill their activity throughout the internal market. An activity can often only recorded in the Member States, if you can demonstrate appropriate training. To facilitate the recognition of training, initiatives have been taken at European level, such as:

• Directive 2005/36/EC on the recognition of professional qualifications ( and its predecessor policies )
• The Bologna process. This is to unify the university degrees or at least ensure a better comparability of financial statements.

"Negative " and " positive " integration

Although the abolition of internal borders in the European Internal Market ( negative integration ) is not yet completed, it is much more advanced than the development of a common policy for establishing a framework for these inland market (positive integration). While the nation-states renounce through their participation in the internal market on a number of political control instruments (eg on a separate tariff and trade policy on the management of migration flows and limiting access to the labor market, etc.), were - in criticizing the alleged excessive regulation - at the level of the European Union no action skills with a comparable extent created. This means that regardless of national policy-making alone participation has unfolded a strong effect of market liberalization and deregulation in the EU Member States in the internal market. This effect may be enhanced by the application of the country of origin principle, as this in a competition with the various legal systems.

This effect is reinforced by the fact that the negative integration has long been enshrined in the contract and will be enforced by supranational institutions like the European Commission and the European Court of Justice against Member States (eg in infringement proceedings ).

To positive integration, however, new legislative acts are necessary and however requires under the terms of the political system of the European Union on a regular basis the approval of a large number of political actors with different interests and goals, which is just as well, given the different national policy models are often difficult to achieve. Meanwhile, the institutions of the European Union were authorized minimum requirements, for example in the areas of transport (Article 91 TFEU), environmental protection (Article 191 and Article 192 TFEU ), consumer protection (Art. 169 TFEU), labor law and labor protection (eg Art to adopt 153 TFEU), which also has been exercised.

Expansion of the European internal market

Basically belong to the European single market and for tax or customs territory of the European Union, its Member States and those areas with internal autonomy for whose external relations are assumed by a Member State. However, there are historical reasons deviations (see: territory of the European Union).

Particularly connected to the single European market are further comprises:

• Iceland, Liechtenstein and Norway through the European Economic Area,
• Switzerland, through bilateral contracts and
• Turkey ( Customs Union since 1996).

History

Origins

The four fundamental freedoms of the internal market have been the subject of the Treaty of 1957. Yet, however, in the late 1970s they were far away from being realized.

Thus, although the goods duties had been abolished in the territory of the European Community; the free movement of goods was, however, particularly in the Cassis de Dijon decision of the European Court of 1979, hampered by a variety of non-tariff barriers, such as different product standards and compliance procedures of the individual Member States.

Similarly, had different training, study and examination regulations, which were among themselves or only recognized by the Member States in consuming methods than obstacles to the free movement of workers.

Genscher-Colombo initiative and the Single European Act

Removing these obstacles was, among other aim of the Genscher-Colombo initiative of 1981., The then West German Foreign Minister Hans -Dietrich Genscher and Emilio Colombo, Minister of Foreign Affairs of Italy, wrote a draft reform of the EC Treaty, the Single European Act (SEA). On this basis, developed by Jacques Delors, 1985-1995 President of the European Commission, a comprehensive reform program, which provided more than 300 individual legislative acts.

The contractual basis for this were created in 1987 by the enactment of the Single European Act, which reversed the Treaty on many points; programmatically approved in particular the objective of completing the internal market as "an area without internal frontiers " until 31 December 1992 ( Article 14 of the EC Treaty, now Article 26 TFEU) explains.

In order to create a uniform legal framework for the internal market new powers of the European Communities to the adoption of policies and regulations, among others, in the areas of safety and health at work (now Article 153 TFEU ), consumer protection (now Article 169 TFEU ) and environmental protection were ( now Article 191ff TFEU) created.

At the same time, the decision process for the implementation of relevant rules, by should be accelerated, that the scope of qualified majority voting has been greatly expanded in the Council of the European Union.

New Concept

Form an important basis for the European single market, the EU-wide harmonized technical standards. Since the introduction of the New Approach in 1985 were in all economic sectors European standards (EN) developed, which have led to the elimination of barriers to trade between Member States of the European Union. From an estimated 150,000 national standards before 1985 13,000 harmonized European standards have become in 2007. States wishing to join the European Union, must first be a member of the European Standardisation Organisations European Committee for Standardization CENELEC and take over a large part of EN and withdraw national standards.

Schengen Agreement

In support of the Free movement of persons, the Schengen Agreement was completed in 1985, which led to the abolition of checks on persons. Since the United Kingdom prevented the inclusion of the Agreement in the EC Treaties, the Schengen Agreement was originally independent of the European Communities and the European Union and has been included in the law of the European Union by the Treaty of Amsterdam in 1997.

Transitional provisions on accession of new states

Already at the accession of Portugal, Spain and Greece, transitional periods of up to seven years have been agreed, within which particular the free movement of workers to nationals of the countries that joined is still limited. For 2004 and 2007, acceded Eastern European countries, there were similar transitional provisions. Because only progressively harmonized special consumption taxes (eg for alcohol or tobacco ), however, are temporary importation restrictions permitted. The full application of the Schengen law takes place only after a transition phase and an evaluation of the Schengen ability. The various transitional provisions apply to different periods, some of which are set in advance, include renewal options or are still undetermined.

As before EU legislation is adopted or adapted for further rapprochement with the objectives of the internal market. Examples are the politically controversial European Services Directive and the Regulation of 7 June 2007 on the limitation of roaming charges.