CONSTITUTIONAL LAW OFTHE EUROPEAN UNION KOEN LENAERTS

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1 CONSTITUTIONAL LAW OFTHE EUROPEAN UNION Second Edition by KOEN LENAERTS Prof essor ofeuropean Law, Katholieke Universiteit Leuven, Judge ofthe Court of Justice ofthe European Communities and PIET VAN NUFFEL Légal secretary at the Court of Justice ofthe European Communities Prof essor at the Collège of Europe, Natolin ROBERT BRAY, EDITOR Principal administrator, European Parliament THOMSON SWEET & MAXWELL

2 Préface Foreword to the First Edition Introduction to the source material List of Abbreviations Numerical Table of European cases European Court of Justice European Court of First Instance EFTA Court European Court ofhuman Rights Alphabetical Table of European cases Table of national cases Table of EU and EC Treaties, Protocols and Déclarations Table of European Union and Community Acts Régulations Directives Council Décisions and Décisions of Représentatives ofmember States Rules of Procédure Interinstitutional Agreements Table of Conventions and Agreements concluded by the EC or EU UK Législation Non-UK Législation Pages V vii xxvii xxxvii xliii xliii lxxvi lxxx lxxx Ixxxi cix cxi cxxvii cxxvii cxxxiv cxxxvii cxl cxli cxliii cxlix cli PART I: THE EUROPEAN UNION: DIFFERENT PATHS TOWARDS INTEGRATION 1. THE COMMUNITY INTEGRATION PATH I. The ECSC Treaty 3 II. The EEC Treaty and the EAEC Treaty 6

3 III. The organisational unity of the Community Treaties 10 IV. The supranational character of Community Law 11 V. The enlargement of the Communities (and the European Union) THE NON-COMMUNITY INTEGRATION PATH I. The establishment of the Council of Europe 23 II. Proposais for further collaboration between the Member States of the Communities 27 III. Intergovernmental co-operation between the Member States 33 A. European monetary co-operation 33 B. European political co-operation 35 C. Police and judicial co-operation 36 D. The European Council 39 E. Décisions of the governments of the Member States BRINGING TOGETHER THE PATHS OF INTEGRATION INTO ONE EUROPEAN UNION I. Proposais for a European Union 41 II. The Single European Act 43 III. The Treaty on European Union 46 A. The Intergovernmental Conférences held in B. The establishment of the European Union 49 C. Rétention of différent paths towards intégration 52 D. A single institutional framework 55 IV. The Treaty of Amsterdam 57 V. The Treaty of Nice TOWARDS A "CONSTITUTION FOR EUROPE" I. The Convention on the Future of Europe 67 II. The Intergovernmental Conférence of III. The Treaty establishing a Constitution for Europe 70 IV. Will the European Union be endowed with a Constitution? 74

4 PART II: JURISDICTION OF THE EUROPEAN UNION 5. SUBSTANTIVE SCOPE OF THE COMMUNITY TREATIES I. Principles 80 A. Objectives and tasks of the Community 81 B. The powers of the Community Need for a légal basis Powers differ depending on the légal basis 90 a. Powers conferred expressly or impliedly by the Treaty 90 b. Supplementary compétence to achieve Community objectives (EC Treaty, Art. 308) Exclusive and non-exclusive compétence 95 C. The principle of subsidiarity Rôle played by the principle The requirements of subsidiarity Application of the principle of subsidiarity The principle of subsidiarity in the EU Constitution 107 D. The principle of proportionality Rôle played by the principle The requirements of proportionality Application of the principle of proportionality The principle of proportionality in the EU Constitution: protection of national sovereignty? 114 E. The principle of sincère co-operation or co-operation in good faith Rôle played by the principle The requirements of the duty of sincère co-operation 117 a. Supplementary requirements 117 b. Derogatory requirements 122 F. The principle of equal treatment Field of application 123 a. Prohibition of discrimination on grounds of the nationality of a Member State 125 b. Prohibition of discrimination on grounds of sex/gender 129 c. Other prohibited forms of discrimination 132 xi

5 2. Content 135 a. Substantive discrimination 135 b. Direct and indirect discrimination 135 c. Reverse discrimination 137 II. The common/internal market 139 A. Establishment of a common/internal market Scope of the common market From common market to internai market The internai market in the EU Constitution 147 B. The Treaty provisions on free movement Free movement of goods 149 a. The customs union 151 (1) Prohibition of customs duties on imports and exports and charges having équivalent effect 152 (2) Permissible charges 153 (3) The Common Customs Tariff 156 (4) Customs co-operation 157 b. Prohibition of non-tariff restrictions 158 (1) Prohibition of quantitative restrictions and measures having équivalent effect 159 (2) Exceptions 161 (i) Article 30 of the EC Treaty 162 (ii) The rule of reason 165 (iii) Rules governing selling arrangements 168 c. Common commercial policy Free movement of persons 171 a. General scope 171 b. Beneficiaries 173 (1) Nationals of a Member State 173 (2) Qualifying workers 174 (3) Self-employed persons and companies qualifying 176 (4) Connection with Community law 177 c. Substance of the free movement of persons 179 (1) Right to enter, leave and réside 179 (2) Prohibition of discriminatory and non-discriminatory obstacles 181 (3) Primary and secondary right of establishment 188 d. Permitted restrictions on the free movement of persons 191 (1) Restrictions on grounds of public policy, public security and public health 191 xii

6 (2) Employment in the public service and exercise of public authority 194 (3) Restrictions arising on other justificatory grounds 196 e. Harmonisation and récognition of professional rules 198 f. Social security and the free movement of persons 203 g. Judicial co-operation in civil matters 206 h. Administrative co-operation in connection with free movement of persons 211 i. Movement of nationals of third countries 212 (1) Rights to free movement 212 (2) Access to and résidence in the territory: frontier controls, visas, immigration and asylum 213 (i) Rules regarding access to the territory and establishment of an area of freedom, security and justice 213 (ii) Measures relating to border checks 215 (iii) Measures relating to asylum 217 (iv) Measures relating to immigration policy 219 (v) Particular rules relating to Community policy pursuant to Title IV of the EC Treaty 220 (vi) Incorporation of the Schengen acquis 221 (vii) Exceptional status of Denmark, Ireland and the United Kingdom 223 (3) The area of freedom, security and justice in the EU Constitution Freedom to provide of services 227 a. Définition and beneficiaries 227 b. Substance of the freedom to provide services 231 c. Permitted restrictions on freedom to provide services 233 (1) Restrictions pursuant to Arts 45 and 46 of the EC Treaty 233 (2) Restrictions based on the rule of reason 234 d. Services and the common commercial policy Free movement of capital and payments 238 a. Définition and substance 238 b. Permitted restrictions on the free movement of capital and payments 240 C. Agriculture and fisheries 243 xiii

7 xiv CONTENTS D. Transport 248 E. Compétition Rules for undertakings 252 a. Article 81 of the EC Treaty 252 b. Article 82 of the EC Treaty 256 c. Control of concentrations 257 d. Public undertakings and services of gênerai interest State aid 262 F. Harmonisation of national législation The impact of Community harmonisation measures Harmonisation under Arts 94 and 95 of the EC Treaty New approach to Community harmonisation Powers to harmonise in the EU Constitution 277 III. Economie and Monetary Policy 279 A. Préparation of économie and monetary union 280 B. Introduction of économie and monetary union 282 C. Economie policy 287 D. Monetary policy 292 E. Position of Member States not belonging to the Euro Zone 296 IV. Other Areas of Community Policy 298 A. Social policy and employment 299 B. Education, vocational training, youth and sport 305 C. Culture 308 D. Public health 311 E. Consumer protection 314 F. Trans-European networks 315 G. Industry 316 H. Economie, social and territorial cohésion 317 I. Research and technological development 318 J. Environment 319 K. Development co-operation and other forms of co-operation with third countries 322 L. Energy, tourism and civil protection 322 M. Administrative co-operation 324 N. Implementation of the solidarity clause SUBSTANTIVE SCOPE OF TTTLES V AND VI OF THE EU TREATY I. Principles 325

8 II. The Common Foreign and Security Policy (Title V) 326 III. Police and Judicial Co-operation in Criminal Matters (Title VI) 328 A. Co-operation in criminal matters and création of an area of freedom, security and justice 328 B. Police co-operation 329 C. Judicial co-operation in criminal matters 331 D. Alignment of national criminal provisions 333 E. Spécifie rules for police and judicial co-operation in criminal matters 334 F. Police and judicial co-operation in criminal matters in the EU Constitution TEMPORAL SCOPE OF THE TREATIES I. Entry into effect of the Treaties 339 IL Duration of the Treaties 340 III. Amendment of the Treaties 341 A. Procédure for amending the Treaties General amendment procédure Spécial procédures for spécifie Treaty amendments 345 B. Limits to the possibility to amend the Treaties 347 TERRITORIAL SCOPE OF THE TREATIES I. Territorial application 351 IL Accession of Member States 357 A. Conditions for accession to the European Union 358 B. Procédure for acceding to the European Union 360 III. Member States leaving the Union EXCEPTIONS TO THE APPLICATION OF THE TREATIES I. Safeguard Clauses 365 IL Differentiated Scope of the Treaties 368 A. Grant of exceptional status to a Member State 368 B. Enhanced co-operation between Member States 372 III. Suspension of Treaty Rights and Obligations 377 xv

9 xvi CONTENTS PART III: THE ACTORS OF THE EUROPEAN UNION 10. THE INSTITUTIONS AND BODIES OF THE UNION I. The European Council 384 IL The institutions of the Union 389 A. The European Parliament Powers 390 a. Nature 390 b. Survey of powers 391 (1) Provision of advice 391 (2) Participation in decision-making 392 (3) Involvement in external relations 393 (4) Budgetary authority 393 (5) Supervision of other institutions and bodies Composition Opération Internai organisation Changes proposed in the EU Constitution 409 B. The Council Powers 410 a. Decision-making 410 b. Co-ordination 410 c. Implementation 411 d. Représentation 411 e. Relationship to other institutions and bodies Composition Opération Internai organisation Changes proposed in the EU Constitution 425 C. The Commission Powers 427 a. Supervision 427 b. Participation in decision-making 430 c. Implementation 431 d. Représentation Composition Opération Internai organisation Changes proposed in the EU Constitution 439 D. The Court of Justice and the Court of First Instance Jurisdiction 443

10 2. Composition Procédure Internai organisation Changes proposed in the EU Constitution 454 E. The Court of Auditors Powers Composition Opération Internai organisation 458 IL Bodies established by or pursuant to the Community Treaties 458 A. Advisory committees The European Economie and Social Committee The Committee of the Régions Other committees 462 B. The European Central Bank 464 C. The European Investment Bank 468 D. The European Ombudsman 469 E. Other Community Bodies 472 III. Other bodies of the Union 477 IV. Administrative organisation 478 A. The position of the Union/Communities under the domestic légal Systems of the Member States 478 B. The budget of the Union Content of the budget 482 a. General principles 482 b. Revenue 485 c. Expenditure Adoption of the budget Implementation of the budget Budgetary control 497 C. The seats of the institutions and bodies 502 D. Status of members of institutions and bodies 504 E. Status of officiais and other servants 507 F. Rules governing languages 510 G. Transparency and access to documents 516 H. Protection of personal data THE MEMBER STATES OF THE UNION I. The Member States as constituent authority 521 IL The Member States as actors in decision-making 522 A. The rôle of the national governments 522 xvii

11 xviii CONTENTS B. The rôle of the national parliaments 523 III. The Member States' Rôle in implementing Treaty provisions and acts 530 IV. Resolution of disputes in the Member States in connection with the implementation and enforcement of treaty provisions and acts 531 V. The rôle played by devolved authorities THE CITIZENS OF THE UNION I. The légal subjects of the Community 539 IL Citizenship of the Union 541 A. The relationship between the Union and its citizens 541 B. Définition of citizenship 544 C. Substance of citizenship 545 III. The status of nationals of non-member countries THE RELATIONSHIP BETWEEN THE ACTORS I. Relationship between the institutions of the Union and the Member States 557 IL Représentation of interests through institutions and Member States 558 III. Balance between the institutions 560 IV. The allocation of the classical fonctions of a State 563 PART IV: THE DECISION-MAKING PROCESS WTTHIN THE EUROPEAN UNION 14. COMMUNITY DECISION-MAKING I. The distinction between législation and the implementation of législation 569 IL Législation 572 A. Basic outline 572 B. Decision-making power 574 C. Right of initiative 577 D. Rôle of the European Parliament No uniform input from the Parliament Survey of procédures 586

12 a. Optional consultation 586 b. Compulsory consultation 587 c. Co-operation (EC Treaty, Art. 252) 590 d. Co-decision (EC Treaty, Art. 251) 592 e. Assent 599 f. Other conciliation procédures 599 g. Information 600 E. Rôle of the social partners 601 F. Input from other bodies and groups 604 III. The implementation of législation 606 A. Implementation by the Member States 607 B. Implementation by institutions or bodies of the Communities Implementation by the Commission or the Council 611 a. General principles 611 b. Supervision of implementation by the Commission: "comitology" Implementation by other bodies 619 IV. Decision-making restricted to particular Member States 624 A. Application of Title IV of the EC Treaty 625 B. Economie and Monetary Union 627 C. Enhanced co-operation NON-COMMUNITY DECISION-MAKING I. Decision-making under the Common Foreign and Security Policy (CFSP) 631 A. Policy-making in the CFSP 631 B. Implementation of the CFSP 635 C. Enhanced co-operation in the CFSP 638 D. Decision-making under the EU Constitution 639 IL Decision-making relating to Police and Judicial Co-operation in Criminal Matters (PJCC) 640 A. Policy-making with respect to PJCC 640 B. Implementation of the PJCC 642 C. Enhanced co-operation with respect to PJCC 644 D. Decision-making under the EU Constitution 645 III. Conventions concluded between Member States 647 IV. Other décisions of Member State governments LEGITIMACY OF DECISION-MAKING I. Efficiency of decision-making 649 xix

13 II. Démocratie content of decision-making 650 A. Substance of démocratie legitimacy 650 B. Participation in and supervision of decision-making Transparency of the division of powers Rôle of parliamentary bodies Transparency of decision-making Easier access to législation 660 PART V: SOURCES OF LAW OF THE EUROPEAN UNION 17. COMMUNITY LAW I. Forms of Community Law 665 IL Effect in the national légal Systems 665 A. The Principles of the primacy and full effectiveness of Community law Formulation on the basis of Community law 666 a. The principle of primacy of Community law 666 b. The principle of interprétation in conformity with Community law 667 c. Duty to set aside conflicting national rules 668 d. Liability of the Member State for damage arising out of a breach of Community law Incorporation in the Member States' légal Systems 678 a. Original Member States 679 (1) Belgium 679 (2) France 681 (3) Germany 683 (4) Italy 686 (5) Luxembourg 687 (6) The Netherlands 688 b. Member States having acceded subsequently 688 (1) Ireland, the United Kingdom and Denmark 688 (2) Greece 691 (3) Portugal and Spain 692 (4) Austria, Finland and Sweden 693 (5) The Member States having acceded in B. The direct effect of Community law 700 III. Sources of Community law 703 A. Hierarchy of sources of law 703 B. Primary Community law Status of primary Community law 705 xx

14 xxi CONTENTS 2. Survey of primary Community law 706 C. General principles of Community law General principles of law 711 a. Status 711 b. Survey Fundamental rights 719 a. Status 719 (1) Fundamental rights as gênerai principles of Community law 719 (2) Protection vis-à-vis Community institutions 723 (3) Protection vis-à-vis Member States 723 (4) Strengthening the protection of fundamental rights 726 b. Survey 734 D. International law International agreements concluded by the Community 739 a. Légal force and direct effect of international agreements 739 b. Légal force and direct effect of décisions adopted by organs set up by international agreements 743 c. Status of agreements concluded within the framework of GATT/WTO 744 d. Interprétation and reviewing the legality of international agreements International agreements concluded by Member States with non-member countries 749 a. Agreements concluded after the Community Treaties entered into force 749 b. Agreements concluded before the Community Treaties entered into force Other rules of international law 753 a. Customary international law and gênerai principles of law 754 b. Obligations in connection with the United Nations 755 E. Autonomous measures adopted by institutions and bodies Formai requirements 758 a. Manner in which acts come into being 758 b. Statement of reasons 759 c. Publication or notification entry into effect 760 d. Enforcement 762

15 2. Acts of the institutions 762 a. Survey 762 b. Régulations 763 c. Directives 766 (1) The transposition of directives into national law 766 (2) The direct effect of provisions of an unimplemented or incorrectly implemented directive 769 (3) Other effects of an unimplemented or incorrectly implemented directive 774 d. Décisions 780 e. Recommendations and opinions 782 f. Other acts 782 g. The EU Constitution and the introduction of a distinction between législative acts and implementing acts Interinstitutional agreements Acts of other Community bodies 792 F. The case law of the Court of Justice and the Court of First Instance NON-COMMUNITY ACTS OF THE UNION I. Forms of non-community acts 795 IL Légal force of non-community acts 796 A. General appraisal 796 B. Conventions concluded between the Member States 798 C. Other acts of Member State governments 803 D. Acts of the European Council and the Council pursuant to the CFSP and PJCC 804 E. International agreements concluded by the Union in connection with the CFSP and PJCC 810 PART VI: THE EXTERNAL RELATIONS OF THE EUROPEAN UNION 19. THE POSITION IN INTERNATIONAL LAW OF THE COMMUNITIES AND THE UNION I. International légal personality 815 xxii

16 xxiu CONTENTS IL International représentation 819 A. Diplomatie relations of the Union 819 B. Représentation of the Communities 820 C. Représentation of the Union in connection with its non-community action 822 D. Représentation of the Union under the EU Constitution THE EXTERNAL POWERS OF THE COMMUNITIES AND THE UNION I. The Common Commercial Policy 828 A. Scope 828 B. Autonomous measures 835 C. Trade agreements and co-operation agreements 838 D. Participation in GATT and the World Trade Organisation The Community and GATT The Community and the World Trade Organisation 841 IL Association 843 A. The overseas countries and territories 843 B. Article 310 of the EC Treaty Scope Association agreements 846 a. Survey 846 b. The ACP-EC Partnership Agreement 848 III. Development Co-operation and Humanitarian Aid 851 IV. Economie, Financial and Technical Co-operation with Non-member Countries 855 V. Other Community Powers 856 A. External aspects of internai rules 856 B. International agreements based on internai powers 857 C. Relationship to the Member States' international powers 860 VI. The Common Foreign and Security Policy (CFSP) 864 A. Objectives and scope of the CFSP 864 B. Substance of the Common Foreign and Security Policy 866 C. The European Security and Defence Policy (ESDP) 870 D. Spécial Status of certain Member States 873 VIL Economie Sanctions 875

17 21. THE COMMUNITY AND NON-COMMUNITY PROCEDURES FOR CONCLUDING AGREEMENTS I. Field of application of the Community procédure 881 IL Community procédure for the negotiation and conclusion of agreements 882 A. Negotiations 883 B. Conclusion of agreements Initialling and signature Power to conclude agreements Involvement of the European Parliament 887 a. Consultation 887 b. Assent 889 C. Changes to the procédure for the conclusion of agreements provided for in the EU Constitution 891 III. Mixed agreements 892 IV. Non-Community procédure for the conclusion of agreements 894 V. Opinion of the Court of Justice CONSISTENCY BETWEEN THE COMMON FOREIGN AND SECURITY POLICY AND COMMUNITY ACTION ON THE PART OF THE UNION I. Consistency between the Common Foreign and Security Policy and the Communities 899 A. Principle 899 B. Guarantees of consistency Objectives of the Union A single institutional framework External supervision 902 C. Relationship between the Common Foreign and Security Policy and the Communities 903 IL Consistency between the external action of the Union and that of the Member States RELATIONS BETWEEN THE EUROPEAN UNION AND THE OTHER EUROPEAN STATES I. Relations with Member Countries of the European Free Trade Association 907 A. Historical interprétation 907 B. The European Economie Area 908 xxiv

18 1. Origins Substantive scope Institutional opération 913 a. Institutions 914 b. Decision-making procédure 915 c. Surveillance procédure, settlement of disputes and consistent interprétation 917 IL Relations with Central and Eastern European Countries 921 A. Unilatéral trade measures 921 B. Bilatéral relations with central and eastern European countries Trade and co-operation agreements Europe Agreements with central European countries 926 a. Substantive aspects 927 b. Institutional dimension 929 c. Aims The pre-accession strategy with Turkey The stabilisation and association agreements with the south-eastern European countries Partnership and co-operation agreements with eastern European countries 933 Index 937 TheAuthors 971 XXV

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