Podpora cizojazyčného profilu výuky práva na PF UP reg. č.: CZ.1.07/2.2.00/ EU Internal Market of the EU Václav Stehlík 23/2/ and 2/3/2011

Forms of economic integration: - free trade area - customs union - common market - common market - internal market - economic and monetary union

Techniques of economic integration 1) prohibition of national rules that - discriminate against goods, labour, capital … - make it more difficult to access the market - deregulatory - negative integration

Techniques of economic integration 2) positive integration of divergent national rules (health/safety/consumer protection …) - regulatory - harmonisation of national laws – art. 115 TFEU (ex 94 TEC) and 114 TFEU (ex 95 TEC) - positive integration

Limits of integration prior to 1986 Art. 94 TEC (now 115 TFEU) The Council shall, acting unanimously in accordance with a special legislative procedure and after consulting the European Parliament and the Economic and Social Committee, issue directives for the approximation of such laws, regulations or administrative provisions of the Member States as directly affect the establishment or functioning of the internal market.

Limits of integration prior to 1986 Problems - art. 94 TEC – unanimity - detailed directives – agreement very difficult - technical innovations quicker than passing of directives - 70s and beginning of 80s - pessimism in the EU about a chance to create the single market

- judicial contribution to solve the problem- ECJ - direct effect through preliminary ruling procedure (f.e. Cassis de Dijon case) - direct effect through preliminary ruling procedure (f.e. Cassis de Dijon case) - infringement proceedings

Single European Act ) economic dimension of integration - White Paper on the Completing the Internal Market - COM(85)310: - removal of physical barriers (customs posts at frontiers) - removal of technical barriers (different standards for individual products) - removal of fiscal barriers New strategy : - art. 94 not flexible - newly emphasis not only on the harmonisation - more on mutual recognition rule (now art. 30, 36 TFEU) - more on mutual recognition rule (now art. 30, 36 TFEU)

White paper - clear distinction between what is necessary harmonise and what can be mutually recognised - legislative harmonisation only for laying down essential health and safety requirements - harmonisation of European industrial standards

2) political dimension of integration - necessary for success of economic integration - key payers had to accept the necessity of integration a) domestic political context - failure of national strategies for economic growth - transformation of the „left parties“ from Communist to more market oriented - change in the composition of governments

b) Commission‘s initiative - promoting the new policy c) role of the business elite - European multinational corporations accepted that the idea of single market is irreversible - changed their policies - cooperated with the Commission

- possibly also due to inter-state bargains of France, Germany and Britain - threat of two-track Europe (Britain would be in the 2nd track) - due to convergence of European economic-policy preferences in early 80s Result: - good conditions for reforms

White paper - accepted by the European Council – 1985 SEA – new procedures to facilitate the legislative process

Art. 14 TEC (now art. 26 TFEU) 1. The Union shall adopt measures with the aim of establishing or ensuring the functioning of the internal market, in accordance with the relevant provisions of the Treaties. 2. The internal market shall comprise an area without internal frontiers in which the free movement of goods, persons, services and capital is ensured in accordance with the provisions of the Treaties.

- aim for EU institutions in the Treaties – 31/12/ definition of the internal market no internal frontiers = no controls it does not mean that the goods can move without any obstacles - art. 14 does not have direct effect (Declaration of MSs to art. 14 plus ECJ in C-378/97 Wijsenbeek - EU harmonisation required)

Art. 95 TEC (now 114 TFEU) – new general legislative power to legislate without uniformity - only to achieve aims of art. 14 TEC - adoption of directives, regulations - cooperation procedure, later co-decision procedure - used as a subsidiary legal basis in case a measure may not be adopted under other provisions - limits C-376/98 Germany v. EP and Council (Tobacco Advertising case) C-376/98 Germany v. EP and Council (Tobacco Advertising case)

New approach to harmonisation - mutual recognition - legislative harmonisation restricted to health and safety standards – directives are general, specified in standards - promotion of European standardisation - competent (private) standardisation bodies issue voluntary standards - standards - compatible with these directives – approved by the Commission, published in the OJ

Standardisation bodies - European Committee for Standardization (CEN) - European Committeee for Electrotechnical Standardisation (CENELEC) - European Telecommunications Standards Institute (ETSI)

EU standards - presumption of their compliance with directives - MSs burden of proof of the opposite - producers not using these standards – burden of proof of compatibility with directives

New approach to harmonisation - flexibility - quick adoption of directives - less detail - proper implementation is supported by state liability for damages

- supported by Directive 98/34 – MSs giving information on their legislation in technical standards and regulations (enforcement reinforced by C-194/94 CIA) - Regulation 2679/98 MSs obligation to give information concerning obstacles to free movement of goods

- supported by ECJ case-law – Cassis de Dijon (similar principles in other freedoms) - change in the harmonisation focus of the Commission - directives generally focused not focused on individual items, but on general categories (safety of toys, medical devices …)

Harmonisation methods - exhaustive (maximum) harmonisation - excludes MSs competence in this area (f.e. product safety directive) - partial (minimum) harmonisation - leaves some issues to national law (f.e. product liability directive) - no harmonisation (lack of resources, less priority, political difficulty, no consensus on form of harmonisation)

Questions What are the forms of economic integration? What is EFTA? Its membership? What is the White Paper (1985) and the Single European Act? What were the physical, technical and fiscal barriers according to the White Paper? What is the Internal Market? What is the procedure under Directive 98/34 in relation to information on Member States‘ legislation in technical standards and regulations? What are the Member States‘ obligations under Regulation 2679/98?

Sources Craig, P, de Búrca, G: EU law text, cases and materials, Oxford UP, 4 th edition, pages  – documents, general website  – case-law  – EU legislation, case-law  - documents  n-standards/documents/harmonised- standards-legislation/index_en.htm - standardisation

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