European Union Law. Robert Schütze is Professor of European Law at Durham University and Visiting Professor at LUISS Università Guido Carli.

Transcription

1 European Union Law The European Union has existed for over half a century. Having started as the Europe of the Six in a very specific industrial sector, the Union today has 28 Member States and acts within almost all areas of social life. European law has come to influence almost all fields of national law, including administrative law, constitutional law, contract law, criminal law and even tort law; and it has also played a major role in the development of competition law, environmental law and employment law. What is the European Union? How does it work, and how does it produce European law? Written with exceptional clarity, European Union Law offers a classic textbook for students and practitioners of European law alike. Using a clear framework, it guides readers through all the core constitutional and substantive topics of EU law, and provides an overview of the most important internal and external policy areas of the European Union. Extracts from classic case law are complemented with extensive and critical discussion of the theoretical and practical aspects of the European Union and its law. Chapters are enriched with more than one hundred colour figures and tables, which clarify complex topics and illustrate relationships and processes. Suggestions for further reading direct students to significant pieces of academic literature for deeper self-study, and a companion website with full Lisbonised versions of the cases cited in the text completes the learning package. is Professor of European Law at Durham University and Visiting Professor at LUISS Università Guido Carli.

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3 European Union Law ROBERT SCHÜTZE

4 University Printing House, Cambridge CB2 8BS, United Kingdom Cambridge University Press is part of the University of Cambridge. It furthers the University s mission by disseminating knowledge in the pursuit of education, learning and research at the highest international levels of excellence. Information on this title: / This publication is in copyright. Subject to statutory exception and to the provisions of relevant collective licensing agreements, no reproduction of any part may take place without the written permission of Cambridge University Press. First published 2015 Printed in the United Kingdom by Bell and Bain Ltd A catalogue record for this publication is available from the British Library Library of Congress Cataloguing in Publication data Schütze, Robert. author. European Union law /. pages cm ISBN (hardback) 1. Law European Union countries. I. Title. KJE947.S dc ISBN Hardback ISBN Paperback Cambridge University Press has no responsibility for the persistence or accuracy of URLs for external or third-party internet websites referred to in this publication, and does not guarantee that any content on such websites is, or will remain, accurate or appropriate.

5 For my Students Past and Present

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7 Summary Contents Part I Constitutional Foundations 1 1 Constitutional History: From Paris to Lisbon 3 2 Constitutional Nature: A Federation of States 43 3 European Law I: Nature Direct Effect 77 4 European Law II: Nature Supremacy/Pre-emption Governmental Structure: Union Institutions I Governmental Structure: Union Institutions II 185 Part II Governmental Powers Legislative Powers: Competences and Procedures External Powers: Competences and Procedures Executive Powers: Competences and Procedures Judicial Powers I: (Centralised) European Procedures Judicial Powers II: (Decentralised) National Procedures Judicial Powers III: EU Fundamental Rights 429 Part III Substantive Law A Internal Market Free Movement of Goods I: Negative Integration Free Movement of Goods II: Positive Integration Free Movement of Persons: Workers and Beyond Free Movement of Services and Capital 631 B Union Policies Competition Law I: Private Undertakings Competition Law II: State Interferences Internal Policies: An Overview External Policies: An Overview 859 Appendices How to Find the EU Treaties How to Find (and Read) EU Secondary Law How to Find (and Read) EU Court Judgments How to Find EU Academic Resources 933

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9 Detailed Contents List of Illustrations List of Tables List of Cases List of Secondary Law Table of Equivalents List of Abbreviations Preface Acknowledgements xxiv xxvi xxviii lxxxvii cv cxi cxv cxvii Part I Constitutional Foundations 1 1 Constitutional History: From Paris to Lisbon 3 Introduction 3 1. From Paris to Rome: The European Coal and Steel Community 7 a. The (Supranational) Structure of the ECSC 8 b. The (Failed) European Defence Community From Rome to Maastricht: The European (Economic) Community 12 a. Normative Supranationalism: The Nature of European Law 13 b. Decisional Supranationalism: The Governmental Structure 14 c. Intergovernmental Developments outside the EEC 18 d. Supranational and Intergovernmental Reforms through the Single European Act From Maastricht to Nice: The (Old) European Union 22 a. The Temple Structure: The Three Pillars of the (Maastricht) Union 23 aa. The First Pillar: The European Communities 24 bb. The Second Pillar: Common Foreign and Security Policy 26 cc. The Third Pillar: Justice and Home Affairs 27 b. A Decade of Constitutional Bricolage : Amsterdam and Nice 27 aa. The Amsterdam Treaty: Dividing the Third Pillar 28 bb. The Nice Treaty: Limited Institutional Reform From Nice to Lisbon: The (New) European Union 32 a. The (Failed) Constitutional Treaty: Formal Total Revision 33 b. The Lisbon Treaty: Substantive Total Revision 36

10 x Detailed Contents Conclusion 39 Further Reading 41 2 Constitutional Nature: A Federation of States 43 Introduction The American Tradition: Federalism as (Inter)national Law 45 a. Madisonian Federalism: Three Dimensions 45 b. The Mixed Constitution and the Sovereignty Question The European Tradition: International versus National Law 50 a. Conceptual Polarisation: Confederation versus Federation 50 b. Early Criticism: The European Tradition and the (Missing) Federal Genus The European Union in Light of the American Tradition 56 a. Foundational Dimension: Europe s Constitutional Treaties 56 b. Institutional Dimension: A European Union of States and People(s) 59 c. Functional Dimension: The Division of Powers in Europe 61 d. Overall Classification: The European Union on Federal Middle Ground The European Union in Light of the European Tradition 62 a. The Sui Generis Theory : The Incomparable European Union 63 b. The International Law Theory: The Maastricht Decision 65 c. Europe s Statist Tradition Unearthed: Three Constitutional Denials 67 d. Excursus: Europe s Democratic Deficit as a False Problem? 71 Conclusion 73 Further Reading 76 3 European Law I: Nature Direct Effect 77 Introduction Primary Union Law: The Effect of the Treaties 82 a. Direct Effect: From Strict to Lenient Test 84 b. The Dimensions of Direct Effect: Vertical and Horizontal Direct Effect Direct Union Law: Regulations and Decisions 89 a. Regulations: The Legislative Instrument 89 aa. General Application in All Member States 90 bb. Direct Application and Direct Effect 91 b. Decisions: The Executive Instrument 93 aa. Specifically Addressed Decisions 93 bb. Non-addressed Decisions 95

11 Detailed Contents xi 3. Indirect Union Law: Directives 95 a. Direct Effect and Directives: Conditions and Limits 96 aa. The No-horizontal-direct-effect Rule 98 bb. The Limitation to the Rule: The Wide Definition of State (Actions) 100 cc. The Exception to the Rule: Incidental Horizontal Direct Effect 101 b. Indirect Effects through National and (Primary) European Law 103 aa. The Doctrine of Consistent Interpretation of National Law 103 bb. Indirect Effects through the Medium of European Law External Union Law: International Agreements 109 a. The Conditions of Direct Effect 110 b. The Dimensions of Direct Effect 112 Conclusion 114 Further Reading European Law II: Nature Supremacy/Pre-emption 117 Introduction The European Perspective: Absolute Supremacy 118 a. The Absolute Scope of the Supremacy Principle 120 aa. Supremacy over Internal Laws of the Member States 120 bb. Supremacy over International Treaties of the Member States 122 b. The Executive Nature of Supremacy: Disapplication, Not Invalidation The National Perspective: Relative Supremacy 127 a. Fundamental Rights Limits: The So-long Jurisprudence 129 b. Competences Limits: From Maastricht to Mangold Legislative Pre-emption: Nature and Effect 134 a. Pre-emption Categories: The Relative Effects of Pre-emption 134 aa. Field Pre-emption 135 bb. Obstacle Pre-emption 136 cc. Rule Pre-emption 136 b. Modes of Pre-emption: Express and Implied Pre-emption Constitutional Limits to Legislative Pre-emption 139 a. Union Instruments and their Pre-emptive Capacity 139 aa. The Pre-emptive Capacity of Regulations 139 bb. The Pre-emptive Capacity of Directives 141 cc. The Pre-emptive Capacity of International Agreements 142 b. Excursus: Competence Limits to Pre-emption 144 Conclusion 144 Further Reading 146

12 xii Detailed Contents 5 Governmental Structure: Union Institutions I 147 Introduction The Separation-of-Powers Principle and the European Union The European Parliament 154 a. Formation: Electing Parliament 155 aa. Parliament s Size and Composition 156 bb. Members of the European Parliament and Political Parties 158 b. Internal Structure: Parliamentary Organs 160 c. The Plenary: Decision-making and Voting 162 d. Parliamentary Powers 164 aa. Legislative Powers 164 bb. Budgetary Powers 165 cc. Supervisory Powers 166 dd. Elective Powers The European Council 169 a. The President of the European Council 170 b. The European Council: Functions and Powers The Council of Ministers 173 a. The Council: Composition and Configuration 173 b. Internal Structure and Organs 175 aa. The Presidency of the Council 175 bb. Coreper and Specialised Committees 176 cc. Excursus: The High Representative of Foreign Affairs and Security Policy 178 c. Decision-making and Voting 179 d. Functions and Powers Governmental Structure: Union Institutions II The Commission 185 a. Composition and Structure 186 aa. The President and his College 187 bb. The Commission s Administrative Organs 190 b. Decision-making within the Commission 190 c. Functions and Powers of the Commission 192 d. Excursus: European Agencies and the Commission 195 aa. European Agencies: Functions 196 bb. European Agencies: Structure The Court of Justice of the European Union 198 a. Judicial Architecture: The European Court System 198 aa. The Court of Justice: Composition and Structure 199 bb. The General Court: Composition and Structure 201 cc. Excursus: The Advocates General 202 dd. The Specialised Court(s) : The Civil Service Tribunal 203 b. Judicial Procedure(s) 204

13 Detailed Contents xiii c. Judicial Reasoning: Methods of Interpretation 206 d. Jurisdiction and Judicial Powers The European Central Bank 209 a. The Special Status of the ECB 209 b. Organs and Administrative Structure 211 c. Internal Divisions and Decision-making 213 d. Functions and Powers The Court of Auditors 216 Conclusion 218 Further Reading 219 Part II Governmental Powers Legislative Powers: Competences and Procedures 223 Introduction The Scope of Union Competences 224 a. Teleological Interpretation 225 b. The General Competences of the Union 229 aa. The Harmonisation Competence: Article bb. The Residual Competence: Article The Categories of Union Competences 235 a. Exclusive Competences: Article b. Shared Competences: Article aa. General Considerations 238 bb. Minimum Standard Competences 240 c. Coordinating Competences: Article d. Complementary Competences: Article Legislative Procedures: Ordinary and Special 243 a. The Ordinary Legislative Procedure 245 aa. Constitutional Text: Formal Procedure 245 bb. Constitutional Practice: Informal Trilogues 249 b. The Special Legislative Procedures The Principle of Subsidiarity 252 a. Procedural Standard: Subsidiarity as a Political Safeguard of Federalism 253 b. Substantive Standard: Subsidiarity as a Judicial Safeguard of Federalism 256 Conclusion 259 Further Reading External Powers: Competences and Procedures 263 Introduction The External Competences of the Union 265 a. The Common Foreign and Security Policy 267 b. The Union s Special External Powers 268

14 xiv Detailed Contents c. The Residual Treaty Power: From ERTA to Article aa. ERTA and the Doctrine of Implied Powers 270 bb. Article 216: Codifying ERTA? 272 d. The Relationship between the CFSP and the Special Competences The Nature of External Competences 276 a. The Sui Generis Nature of the CFSP Competence 276 b. Article 3(2): Subsequently Exclusive Treaty Powers 278 aa. Three Lines of Exclusivity: Codifying Constitutional Practice? 278 bb. Subsequent Exclusivity: A Critical Analysis External Decision-making Procedures 280 a. The Specificity of CFSP Decision-making Procedures 281 aa. Institutional Actors and Institutional Balance 281 bb. Voting Arrangements in the Council 282 b. The Union s (Ordinary) Treaty-making Procedure 283 aa. Initiation and Negotiation 284 bb. Signing and Conclusion 286 cc. Modification, Suspension (and Termination) 288 dd. Union Succession to Member State Agreements Sharing External Power: Constitutional Safeguards of Federalism 290 a. Mixed Agreements: An International and Political Safeguard 291 b. The Duty of Cooperation: An Internal and Judicial Safeguard 293 aa. Member States as Trustees of the Union 295 bb. Reversed Subsidiarity: Restrictions on the Exercise of Shared State Power 296 Conclusion 298 Further Reading Executive Powers: Competences and Procedures 302 Introduction Governmental Powers: The Union s Dual Executive 304 a. The Legal Instruments of Political Leadership 305 b. The Informal Procedure(s) of Government Law-making Powers: Delegated and Implementing Acts 309 a. The Delegation of Legislative Power: Article aa. Judicial Safeguards: Constitutional Limits to Delegated Acts 313 bb. Political Safeguards: Control Rights of the Union Legislator 315 b. The Conferral of Executive Power: Article aa. The Scope of Article bb. Constitutional Safeguards for Implementing Legislation 321 c. Excursus: Delegating Implementing Power to Agencies Administrative Powers I: Centralised Enforcement 327 a. The Scope of the Union s Administrative Powers 328 b. Administrative Powers and the Subsidiarity Principle 331

15 Detailed Contents xv 4. Administrative Powers II: Decentralised Enforcement 334 a. The Effects of National Administrative Acts 335 b. National Administrative Autonomy (and its Limits) 336 Conclusion 340 Further Reading Judicial Powers I: (Centralised) European Procedures 343 Introduction Annulment Powers: Judicial Review 347 a. The Existence of a Reviewable Act 349 b. Legitimate Grounds for Review 350 aa. Formal and Substantive Grounds 351 bb. In Particular: The Proportionality Principle 352 c. Legal Standing before the European Court 354 aa. The Rome Formulation and its Judicial Interpretation 355 bb. The Lisbon Formulation and its Interpretative Problems 359 d. The Indirect Review of European Law 363 aa. Collateral Review: The Plea of Illegality 363 bb. Indirect Review through Preliminary Rulings Remedial Powers: Liability Actions 365 a. Procedural Conditions: From Dependent to Independent Action 366 b. Substantive Conditions: From Schöppenstedt to Bergaderm Adjudicatory Powers I: Enforcement Actions 370 a. Enforcement Actions against Member States 371 aa. The Procedural Conditions under Article bb. Judicial Enforcement through Financial Sanctions 373 b. Enforcement Actions against the Union: Failure to Act Adjudicatory Powers II: Preliminary Rulings 377 a. Paragraph 1: The Jurisdiction of the European Court 378 b. Paragraph 2: The Conditions for a Preliminary Ruling 380 aa. Who : National Courts and Tribunals 380 bb. What : Necessary Questions 382 c. Paragraph 3: The Obligation to Refer and Acte Clair 385 d. The Legal Nature of Preliminary Rulings 388 Conclusion 391 Further Reading Judicial Powers II: (Decentralised) National Procedures 394 Introduction The (Consistent) Interpretation Principle The Equivalence Principle 401 a. Non-discrimination: Extending National Remedies to European Actions 401 b. Similar Actions: The Equivalence Test 402

16 xvi Detailed Contents 3. The Effectiveness Principle 404 a. The Historical Evolution of the Effectiveness Standard 404 aa. First Period: Judicial Restraint 405 bb. Second Period: Judicial Intervention 406 cc. Third Period: Judicial Balance 408 b. Procedural Limits to the Invocability of European Law The Liability Principle 413 a. State Liability: The Francovich Doctrine 414 aa. The Three Conditions for State Liability 417 bb. State Liability for Judicial Breaches of European Law 420 b. Private Liability: The Courage Doctrine 422 Conclusion 425 Further Reading Judicial Powers III: EU Fundamental Rights 429 Introduction The Unwritten Bill of Rights: Human Rights as General Principles 431 a. The Birth of EU Fundamental Rights 432 aa. The European Standard An Autonomous Standard 434 bb. Limitations, and Limitations on Limitations 437 b. United Nations Law: External Limits to European Human Rights? The Written Bill of Rights: The Charter of Fundamental Rights 442 a. The Charter: Structure and Content 443 aa. (Hard) Rights and (Soft) Principles 444 bb. Limitations, and Limitations on Limitations 446 b. Relations with the European Treaties (and the European Convention) The External Bill of Rights: The European Convention on Human Rights 450 a. The Convention Standard for Union Acts 452 aa. Before Accession: (Limited) Indirect Review of Union Acts 452 bb. After Accession: (Full) Direct Review of Union Acts 454 b. Union Accession to the European Convention: Constitutional Preconditions The Incorporation Doctrine : EU Fundamental Rights and National Law 457 a. Incorporation and General Principles: Implementation and Derogation 457 b. Incorporation and the Charter of Fundamental Rights 460 aa. General Rules for All Member States 460 bb. Special Rules for Poland and the United Kingdom 464

17 Detailed Contents xvii c. Incorporation and the European Convention on Human Rights? 466 d. Excursus: Incorporation and Individuals Human Rights and Private Actions 467 Conclusion 468 Further Reading 469 Part III Substantive Law A Internal Market Free Movement of Goods I: Negative Integration 473 Introduction Negative Integration: Jurisdictional Questions 475 a. Personal Scope: State Measures and Private Party Actions 477 b. Material Scope: Discrimination and Restriction Tests 480 c. Constitutional Limits I: De Minimis and Remoteness 483 d. Constitutional Limits II: Purely Internal Situations Fiscal Barriers: Customs Duties and Discriminatory Taxation 486 a. Fiscal Barriers I: Customs Duties and Equivalent Charges 486 aa. Article 30: An Absolute Prohibition 487 bb. Objective Justifications 490 b. Fiscal Barriers II: Discriminatory Taxation 492 aa. Paragraph 1: Discrimination against Similar Foreign Goods 494 bb. Paragraph 2: Protection against Competing Foreign Goods Regulatory Barriers I: Prohibitions 499 a. Quantitative Restrictions on Imports: Article aa. First Period: Dassonville and Trading Rules 500 bb. Second Period: Cassis and Product Requirements 502 cc. Third Period: Keck and Selling Arrangements 504 dd. Fourth Period: Italian Trailers and Consumer Restrictions 506 b. Quantitative Restrictions on Exports: Article Regulatory Barriers II: Justifications 510 a. General Aspects I: Grounds of Justification 510 b. General Aspects II: Proportionality of National Standards 514 c. In Particular: Consumer Protection and European Standards 516 d. In Particular: Intellectual Property Justifications 518 aa. (Il)legitimate Exercises : The Specific Subject Matter Doctrine 519 bb. The Exhaustion of Rights Doctrine 520 cc. Trade Marks and the Question of Consumer Confusion 522 Conclusion 523 Further Reading 524

18 xviii Detailed Contents 14 Free Movement of Goods II: Positive Integration 527 Introduction Harmonisation Competences I: General Competences 529 a. The Concept of Approximation or Harmonisation 531 b. The Establishment or Functioning of the Internal Market 534 c. Relationship to Other Competences: Article 114(2) and Beyond 538 d. Opting Up : The Derogations in Article 114(4) and (5) Harmonisation Competences II: Special Competences 543 a. Tax Harmonisation: In Particular, Article b. Intellectual Property Harmonisation: In Particular, Article Harmonisation Methods: Old and New Approaches 548 a. Harmonisation Methods and Pre-emption Types 550 b. Harmonisation under the Old Approach 552 c. Harmonisation under the New Approach 556 aa. Cassis de Dijon and the New Strategy 556 bb. The New Approach and Horizontal Legislation In Particular: The Common Agricultural Policy 561 a. The Old CAP: Vertical Harmonisation 563 aa. Product Support through Common Prices 563 bb. Legislative Pre-emption through Common Market Organisations 565 b. The New CAP: Towards Horizontal Harmonisation 567 Conclusion 569 Further Reading Free Movement of Persons: Workers and Beyond 572 Introduction Free Movement of Workers 575 a. Personal Scope I: Workers and Quasi-workers 577 aa. Employment: A Minimalist Definition 577 bb. Beyond Employment: Former Workers and Job-seekers 579 b. Personal Scope II: Family Members 581 c. Material Scope: Discrimination and Beyond 583 d. Positive Integration: National Social Security Systems 586 aa. National Coordination: Regulation 883/ bb. In Particular: The Single Legislation Principle Establishment I: Natural Persons 591 a. Negative Integration under Article aa. Personal Scope: Self-employed Persons 592 bb. Material Scope: Discrimination and Beyond 593 b. Positive Integration: Mutual Recognition of Professional Qualifications 596

19 Detailed Contents xix 3. Horizontal Rules: Citizenship and General Justifications 598 a. European Citizenship: A Third Source of Movement Rights 599 b. Citizenship Directive: Substantive Content 602 aa. Residency Rights for Union Citizens (and their Families) 602 bb. Beyond Residency: Equal Treatment 604 c. Horizontal Limitations: Public Policy Justifications 605 d. In Particular: The Public Service Exception Establishment II: Companies 610 a. Personal Scope: The Definition of Companies 611 aa. Home State Restrictions and Daily Mail 613 bb. Host State Restrictions and Centros 614 b. Material Scope: Primary and Secondary Establishment 616 aa. Primary Establishment: A Discrimination Test? 617 bb. Secondary Establishment: A Restriction Test 619 c. Letter-box Companies : The Doctrine of Abuse of Rights 620 d. Positive Integration: Article 50(2)(g) and Beyond 624 aa. Harmonisation: Company Law Directives 624 bb. In Particular: European Corporate Forms 626 Conclusion 628 Further Reading Free Movement of Services and Capital 631 Introduction Services I: General Regime 633 a. Negative Integration: The Prohibition in Article aa. Personal Scope I: Beneficiaries and Addressees 634 bb. Personal Scope II: The Concept of Services 636 cc. Material Scope: Discrimination and Beyond 640 b. Positive Integration: The Services Directive Services II: Special Regimes 646 a. Service Providers and Posted Workers 646 b. Service Recipients and Public Services Capital I: Scope and Nature 654 a. The Direct Effect of Article b. The (Elusive) Concept of Capital 659 c. Capital Restrictions: Discrimination and Beyond 661 aa. Non-discriminatory Capital Restrictions 661 bb. Direct Taxation: A Discrimination Test? 664 d. External Limits: Capital and the Other Freedoms 666 aa. Relationship to the Freedom of Establishment 667 bb. Relationship to the Free Movement of Services Capital II: Justifications (and Derogations) 670 a. Express Justifications I: Tax Discriminations under Article 65(1)(a) 671

20 xx Detailed Contents b. Express Justifications II: Article 65(1)(b) 673 c. Implied Justifications: Imperative Requirements 675 d. Special Derogations for Third-country Restrictions 676 aa. Special Grounds of Justification 677 bb. Special Standard(s) of Justification 678 Conclusion 680 Further Reading 681 B Union Policies Competition Law I: Private Undertakings 685 Introduction Cartels I: Jurisdictional Aspects 688 a. The Concept of Undertaking 689 b. The Single Economic Unit Doctrine 691 c. Forms of Collusion: Agreements and Beyond 693 aa. Agreements I: Horizontal and Vertical Agreements 693 bb. Agreements II: Tacit Acquiescence versus Unilateral Conduct 695 cc. Concerted Practices and Parallel Conduct 697 d. (Potential) Effect on Trade between Member States Cartels II: Substantive Aspects 701 a. Restrictions of Competition: Anti-competitive Object or Effect 701 aa. Two Dimensions: Inter-brand and Intra-brand Competition 702 bb. Restrictions by Object: European Per Se Rules 703 cc. Restrictions by Effect: A European Rule of Reason? 705 dd. Non-appreciable Restrictions: The De Minimis Rule 707 b. Article 101(3): Exemptions through Pro-competitive Effects 708 aa. Direct Exemptions under Article 101(3) 709 bb. Exemptions by Category: Block Exemption Regulations 710 c. In Particular: (Horizontal) Cooperation Agreements 713 d. In Particular: (Vertical) Distribution Agreements 714 aa. Exclusive and Selective Distribution Agreements 714 bb. Vertical Block Exemption Regulation Dominant Undertaking(s): Market Abuse 717 a. The Market : Product and Geographic Dimensions 718 b. Market Dominance 720 aa. General Considerations 720 bb. Collective Dominance 722 c. Abuse of Market Dominance 724 aa. Article 102[2](a) and Predatory Pricing 726 bb. Article 102[2](b) and Refusal to Supply 727 cc. Article 102[2](c) and Discretionary Pricing 729 dd. Article 102[2](d) and Tying or Bundling 730

21 Detailed Contents xxi d. Objective Justification: Apparently Abusive Behaviour? EU Merger Control 734 a. Judicial Origins: Merger Control by Other Means 735 b. Legislative Foundations: The EU Merger Regulation 737 aa. Jurisdictional Scope: The Union Dimension 738 bb. Substantive Compatibility: Dominance and SIEC Tests 741 cc. Merger Defences: Objective Justifications? 744 dd. National Derogations: Public Policy Justifications 745 Conclusion 746 Further Reading Competition Law II: State Interferences 749 Introduction Public Undertakings and Public Services 751 a. Public Undertakings (and Undertakings with Special Rights) 752 b. Services of General Economic Interest 755 aa. Public Service Definition(s): BUPA 757 bb. Public Service Obstruction(s): Corbeau State Aid I: Jurisdictional Aspects 760 a. The Concept of State Aid 761 aa. State Aid and State Resources Alternative or Cumulative Conditions? 763 bb. The (Wide) Concept of State Resources 765 cc. Economic Advantage versus Economic Compensation 767 b. Selectivity of the Aid 770 aa. Material Dimension: Selectivity as Special Favours 770 bb. Geographic Dimension: National or Regional Frame? State Aid II: Substantive Aspects 774 a. Automatic Justifications: Article 107(2) 774 b. Discretionary Justifications: Article 107(3) 776 c. In Particular: Regional Aid Enforcing EU Competition Law 781 a. Enforcement through the States: Articles 101 and aa. Public Enforcement: From Centralised to Decentralised System 782 bb. Private Enforcement: The Role of the (National) Courts 787 b. Enforcement against the States: State Aid 788 aa. New Aid : Powers of the Commission 790 bb. Unlawful Aid : Powers of the Commission (and National Courts) 792 Conclusion 794 Further Reading Internal Policies: An Overview 797 Introduction Economic and Monetary Policy 799

22 xxii Detailed Contents a. Economic Policy: Coordinating the Member States 802 aa. The Stability and Growth Pact and Beyond 802 bb. Financial Assistance: Prohibitions and Permissions 805 b. Euro-membership: Differential Integration 807 c. Monetary Policy: Price Stability 810 d. Supervisory Function: Financial Stability Social Policy 816 a. Social Policy: Competence and Procedure 817 aa. Union Legislation: Article 153 Scope and Nature 817 bb. Private Legislation : Agreements between Social Partners 819 b. Employment Legislation I: Protection at Work 822 aa. General Principles 822 bb. Atypical Work 824 c. Employment Legislation II: Protection against Dismissal 826 d. In Particular: The Equal Pay Principle 828 aa. Pay Discrimination: Direct and Indirect 830 bb. Beyond Pay: Equal Treatment and Positive Action Consumer Protection 833 a. Forming Contracts: The Consumer Rights and Sales Directives 837 b. Policing Contracts: The Unfair Terms Directive 839 c. Policing Business: The Unfair Commercial Practices Directive 841 d. Sanctioning Business: The Product Liability Directive (Regional and) Cohesion Policy 846 a. The European Regional Development Fund 849 aa. Objectives and Regions 849 bb. Administrative Principles and Implementation 852 b. The Cohesion Fund 854 Conclusion 856 Further Reading External Policies: An Overview 859 Introduction Common Commercial Policy 861 a. The Union s CCP Competence: Scope and Nature 863 b. Decision-making and Treaty-making Procedure(s) 868 c. Tariff and Trade Agreements: Multilateral and Bilateral 869 aa. The WTO Agreement: Structure and Content 869 bb. Bilateral Trade Agreements of the Union 871 d. (Autonomous) Liberalisation and Protection Measures Development Cooperation 875 a. Development Policy: General Relations 876 aa. (Indirect) Development Cooperation under the Common Commercial Policy 876 bb. From Trade to Aid: Direct Development Policy 879

23 Detailed Contents xxiii i. Constitutional Foundations: The Development Cooperation Competence 879 ii. Legislative Foundations: The Development Cooperation Instrument 882 b. Development Policy: Special Relations 883 aa. Associating ACP Countries: From Lomé to Cotonou 885 bb. The European Development Fund Common Foreign and Security Policy 888 a. CFSP: Constitutional Foundations 889 aa. Competence(s), Instruments, Procedures 889 bb. Institutional Infrastructure 891 b. Union Strategies : Words for the World 894 c. From Words to Actions I: CSDP Missions 895 d. From Words to Actions II: Restrictive Measures 898 aa. Restrictive Measures: Competence and Procedure 898 bb. Counter-terrorism Measures and Judicial Review Association and Accession 902 a. Constitutional Association: Overseas Countries and Territories 902 b. Contractual Association: Article aa. Bilateral Association: The Customs Union with Turkey 904 bb. EFTA Association: The European Economic Area 907 c. Special Association(s): The European Neighbourhood Policy 910 d. Accession: The Union s Enlargement Policy 913 aa. Pre-accession: Eligibility and Admissibility 914 bb. Accession Agreements: Procedural and Substantive Aspects 916 Conclusion 917 Further Reading 918 Appendices How to Find the EU Treaties How to Find (and Read) EU Secondary Law How to Find (and Read) EU Court Judgments How to Find EU Academic Resources 933 Index 935

24 Illustrations 1.1 Historical Evolution of the Union Pillar Structure of the Old (Maastricht) Union Dual Treaty Basis before and after Lisbon Modes of States Integration Monism and Dualism Direct Effect Direct Applicability, Direct Effect and Private Party Actions Indirect Effect Pre-emption Types: Field, Obstacle, Rule Pre-emption Separation of Power Models Distribution of Seats in the European Parliament (Political Parties) European Council President: Donald Tusk Preparatory Committees to the Council European Commission President: Jean-Claude Juncker Internal Commission Structure Structure of the Court of Justice of the European Union ECJ Chambers Structure of the European Central Bank General and Special Competences Competence Types Structure of the Union Legislator Ordinary Legislative Procedure under Article Declining Democratic Representation Early Agreements through Trilogues Relationships among Union External Competences Unitary and Dual Executive Types of Executive Acts Comitology as defined by Regulation 182/ Federal Enforcement Models European Court: Powers (Flowchart) Plaumann Test Types of Acts under Article 263(4) Preliminary Rulings under Article Judicial Federalism in Comparative Perspective Limits on National Procedural Autonomy Standards of Effectiveness Inspiration Theory versus Incorporation Theory Principles and Rights within the Charter 445

25 List of Illustrations xxv 12.3 Relationship between the Union s Three Bills of Rights Fiscal Barriers: Summary (Flowchart) Regulatory Barriers: Summary (Flowchart) Dual and Cooperative Federalism Free Movement of Persons: Summary (Flowchart) Citizenship Provisions - Coverage Justifications: Summary (Flowchart) Horizontal and Vertical Agreements Elements of Article 101 Summary (Flowchart) Forms of Joint Ventures Market Structures Scope of the 1989 Merger Regulation Merger Tests: Old and New Elements of Article 107 Summary (Flowchart) Polish Regional Aid Map European Competition Network Inflation Rate within the Eurozone Social Policy Competence Nature(s) Structure of the UCP Directive Cohesion Policy: National Distribution Structural Funds Eligibility Cohesion Policy: Implementation Pyramid Cohesion Fund: Eligibility CCP Competence Scope and Nature CFSP Institutional (Sub)Structure European Neighbourhood 911

26 Tables 1.1 Structure of the TEU and TFEU Treaty Provisions on the Institutions Union Institutions Correlating to Governmental Functions Distribution of Seats in the European Parliament (Member States) Standing Committees of the European Parliament Council Configurations Weighted Votes System within the Council Member State Population Sizes Commission College: Portfolios (Selected) European Agencies and Decentralised Bodies Union Policies and Internal Actions Union External Policies Judicial Competences and Procedures Structure of the EU Charter Internal Market Overview Free Movement of Goods Details Market Models and Tests Justificatory Grounds Harmonisation Competences Harmonisation Measures (Selection) Corporate Tax Rates National Differences Treaty Title on Agriculture Common Market Organisations Free Movement of Persons Overview Regulation 883/2004 Structure Directive 2005/36 Structure Family Members and Other Beneficiaries EU Company Law Directives (Historical Selection) Internal Market Overview Services Provisions Overview Services Directive Chapter IV Capital Provisions Overview Capital Nomenclature Justification Grounds: General and Special Competition Rules Overview Block Exemption Regulations (Selection) EU Merger Regulation Structure 738

27 List of Tables xxvii 18.1 Competition Rules Overview Formal and Informal State Aid Measures (Selection) Regulation 1/2003 Structure Internal Policies Overview Treaty Title on EMU Overview Differential Integration within EMU Social Policy Provisions Overview EU Collective Agreements (Selection) EU Consumer Measures (Selection) Cohesion Policy Provisions Overview External Policies Overview WTO Annexes EU Autonomous Measures DCI Programmes and Budget EDF Budget Allocation EU Missions Selection Enlargement Waves European Treaties Chronology European Council Decisions Amending the Treaties Consolidated Versions of the European Treaties Main Academic Journals: General and Specific European Union Law: Specialised Textbooks 934

28 Table of Cases Contents 1. Court of Justice of the European Union xxviii (a) European Court of Justice: Cases (numerical) xxviii (b) European Court of Justice: Cases (alphabetical) liv (c) European Court of Justice: Opinions (numerical) lxxxiii (d) General Court: Cases (numerical) lxxxiv 2. Other jurisdictions lxxxv (a) European Court of Human Rights: Cases (chronological) lxxxv (b) European Free Trade Association (EFTA): Cases (chronological) lxxxv (c) German Constitutional Court: Cases (chronological) lxxxv (d) United States Supreme Court: Cases (chronological) lxxxvi 1. Court of Justice of the European Union (a) European Court of Justice: Cases (numerical) 8/55, Fédération Charbonnière de Belgique v High Authority of the ECSC, [1955] ECR (English Special Edition) , 352 9/56, Meroni & Co., Industrie Metallurgische, SpA v High Authority of the European Coal and Steel Community, [1958] ECR /58, Stork & Cie v High Authority of the European Coal and Steel Community, [1958] ECR (English Special Edition) /59, Italy v High Authority, [1960] ECR /59, De Gezamenlijke Steenkolenmijnen in Limburg v High Authority of the European Coal and Steel Community, [1961] ECR 1, 235, /59, 37/59, 38/59 and 40/59, Geitling Ruhrkohlen-Verkaufsgesellschaft mbh, Mausegatt Ruhrkohlen-Verkaufsgesellschaft mbh and I. Nold KG v High Authority of the European Coal and Steel Community, [1959] ECR (English Special Edition) /60, Humblet v Belgium, [1960] ECR (English Special Edition) /61, Commission v Italy, [1962] ECR /61, Kledingverkoopbedrijf de Geus en Uitdenbogerd v Bosch, [1962] ECR , 787 2/62 and 3/62, Commission v Luxembourg and Belgium, [1962] ECR /62 and 17/62, Confédération nationale des producteurs de fruits et légumes and others v Council, [1962] ECR , /62, Plaumann v Commission, [1963] ECR , 360 3, 366

29 Table of Cases xxix 26/62, Van Gend en Loos v Netherlands Inland Revenue Administration, [1963] ECR (English Special Edition) 1 79, 82 4, 87, 97, 203, 207, /62 to 30/62, Da Costa and others v Netherlands Inland Revenue Administration, [1963] ECR , /62 and 33/62, Lütticke and others v Commission, [1962] ECR /63, Hoekstra (née Unger) v Bestuur der Bedrijfsvereniging voor Detailhandel en Ambachten, [1964] ECR , /63 and 91/63, Commission v Luxembourg and Belgium, [1964] ECR English Special Edition , 373 6/64, Costa v ENEL, [1964] ECR , 75, 120, 235, 379, 383, 385, /64 and 58/64, Établissements Consten SàRL and Grundig-Verkaufs-GmbH v Commission, [1966] ECR , 694, 699, 702, 703, 704, /65 and 35/65, Gutmann v Commission, [1965] ECR /65, Société Technique Minière v Maschinenbau Ulm, [1965] ECR , 702 3, 705, 707, /65, Lütticke GmbH v Hauptzollamt Sarrelouis, [1966] ECR , /67, Fink-Frucht GmbH v Hauptzollamt München-Landsbergerstrasse, [1967] ECR , /67, Firma Gebrüder Luck v Hauptzollamt Köln-Rheinau, [1968] ECR /68, Zuckerfabrik Watenstedt GmbH v Council, [1968] ECR /68, Commission v Italy (Art Treasures), [1968] ECR , 491, /68, Salgoil v Italian Ministry of Foreign Trade, [1968] ECR /68, Commission v Italy (Statistical Levy), [1969] ECR , 488, 491 2/69, Sociaal Fonds voor de Diamantarbeiders v S.A. Ch. Brachfeld & Sons and Chougol Diamond Co., [1969] ECR , 491 5/69, Völk v Vervaecke, [1969] ECR , 707 9/69, Sayag et al. v Leduc et al., [1969] ECR /69, Stauder v City of Ulm, [1969] ECR , /69, Hauptzollamt Hamburg Oberelbe v Bollmann, [1970] ECR /69, ACF Chemiefarma v Commission, [1979] ECR , /69, Imperial Chemical Industries v Commission, [1972] ECR , /69, Compagnie Française commerciale et financière v Commission, [1970] ECR /69, Hauptzollamt Bremen-Freihafen v Waren-Import-Gesellschaft Krohn & Co., [1970] ECR /70, Grad v Finanzamt Traunstein, [1970] ECR /70, Internationale Handelsgesellschaft mbh v Einfuhr- und Vorratsstelle für Getreide und Futtermittel, [1979] ECR , 121, , /70, Chevallery v Commission, [1970] ECR /70, Commission v Council (ERTA), [1971] ECR , 279, 350, /70, Einfuhr- und Vorratsstelle für Getreide und Futtermittel v Köster et Berodt & Co., [1970] ECR , /70, Norddeutsches Vieh- und Fleischkontor GmbH v Hauptzollamt Hamburg-St Annen, [1971] ECR , 395

30 xxx Table of Cases 41/70 to 44/70, International Fruit Company and others v Commission, [1971] ECR , /70, Defrenne v Belgian State, [1971] ECR 445, 830 5/71, Schöppenstedt v Council, [1971] ECR , 368, /71, Béguelin Import Co. v S.A.G.L. Import Export, [1971] ECR /71, Commission v Italy, [1978] ECR /72, Frilli v Belgium, [1972] ECR /72, Europemballage and Continental Can v Commission, [1973] ECR , 718, 725, 735, /72, Granaria v Produktschap voor Veevoeder, [1972] ECR 1163, /72 to 24/72, International Fruit Company NV and others v Produktschap voor Groenten en Fruit, [1972] ECR , 112, 289, /72, Commission v Italy, [1973] ECR /72, Commission v Italy, [1973] ECR /72, Brasserie de Haecht v Wilkin-Janssen (II), [1973] ECR /72 to 69/72, Werhahn Hansamühle and others v Council, [1973] ECR /72, Michel S. v Fonds national de reclassement social des handicaps, [1973] ECR /72, Capolongo v Azienda Agricole, [1973] ECR , 489 2/73, Geddo v Ente Nazionale Risi, [1973] ECR /73, Nold v Commission, [1974] ECR , 434, 435, 437, 438 6/73 and 7/73, Istituto Chemioterapico Italiano and Commercial Solvents Corporation v Commission, [1974] ECR , /73, Fratelli Variola SpA v Amministrazione delle Finanze dello Stato, [1973] ECR /73, Rewe-Zentralfinanz egmbh v Direktor der Landwirtschaftskammer Westfalen-Lippe, [1973] ECR /73 to 48/73, 50/73, 54/73 to 56/73, 111/73, 113/73 and 114/73, Coöperatieve Vereniging Suiker Unie UA and others v Commission, [1975] ECR 1663, 698, 703, /73, Lorenz v Germany, [1973] ECR , /73, Belgische Radio en Televisie (BRT) and others v SABAM and others, [1974] ECR , 783, /73, Sotgiu v Deutsche Bundespost, [1974] ECR , 608, /73, Sacchi, [1974] ECR , /73, Rheinmühlen-Düsseldorf, [1974] ECR /73, Commission v France, [1974] ECR /73, Compagnie Continentale France v Council, [1975] ECR /73, Haegemann v Belgium, [1974] ECR , /73, Van Zuylen frères v Hag AG, [1974] ECR , 522 2/74, Reyners v Belgium, [1974] ECR , 476, 592, 594, 607, 608 8/74, Procureur du Roi v Dassonville, [1974] ECR , 500, 501, 503, 504 9/74, Casagrande v Landeshauptstadt München, [1974] ECR , 582