European Union law

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The idea of European union for the purpose of mutual development and peace can be traced through the middle ages. [ ! Willem "laeu#s map shows Europe in $%% as the Thirty &ears# War ended, before the 'eace of Westphalia in $%(.

Wikisource has original text related to this article: Consolidated version of the Treaty on European Union Consolidated version of the Treaty on the Functioning of the European Union

European Union law is a body of treaties and legislation, such as )egulations and *irectives, which have direct effector indirect effect on the laws of European Union member states. The three sources of European Union law are primary law, secondary law and supplementary law. The main sources of primary law are the Treaties establishing the European Union. +econdary sources include regulations and directives which are based on the Treaties. The legislature of the European Union is principally composed of the European 'arliament and the ,ouncil of the European Union, which under the Treaties may establish secondary law to pursue the ob-ective set out in the Treaties. European Union law is applied by the courts of member states and where the laws of member states provide for lesser rights European Union law can be enforced by the courts of member states. .n case of European Union law which should have been transposed into the laws of member states, such as *irectives, the European ,ommission can take proceedings against the member state under the E, Treaty. The ,ourt of /ustice of the European Union is the highest court able to interpret European Union law. +upplementary sources of European Union law including case law by the ,ourt of /ustice, international law and general principles of European Union law.
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0istory 1 ,onstitutional law 1. Treaties 1.1 2egislatures

o o o o o o o o o o o o o o o o o o o o o o o o o

1.3 E4ecutive 1.% /udiciary 3 ,onflict of laws 3. Effect of EU law 3.1 +upremacy 3.3 .nternational law % 5dministrative law %. /udicial review %.1 6eneral principles %.3 0uman rights %.% )emedies for breach 7 +ocial and market regulations 7. 2abour law 7.1 ,onsumer protection 7.3 Financial market regulation 7.% ,ompany law 7.7 8bligations and property 7.$ ,ompetition law $ Free movement and trade $. 6oods $.1 Workers and citi9ens $.3 +ervices and establishment $.% ,apital : 'ublic regulation :. Ta4ation :.1 Environmental law :.3 ;atural resource management :.% *ata and information :.7 Foreign policy :.$ ,riminal law ( +ee also < ;otes = )eferences E4ternal links

0istory[edit!

Main article: History of the European Union

Part of a series on the

History of the European Union

Timeline[show]

Organisation[show]

Treaties[show]

Commissions[show]

Topics[show]

European Union portal

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While the idea of international, and European integration of national polities has been around since the ancient world, the European Union is the modern version of organisations established after the +econd World War. "ecause of the total failure of the Treaty of >ersailles# system of reparations and the collapse of the 2eague of ;ations after World War 8ne, it was decided that integration of national economies and political institutions was necessary to ensure that war would become unthinkable. 5long with the framework of the United ;ations and the "retton Woods agreements, the original European ,oal and +teel ,ommunity was created in <7= to unify mining and manufacturing industries among France and 6ermany particularly. The first move to comprehensive economic integration was made in the Treaty of )ome <7:.

,onstitutional law[edit!
Main articles: Constitutional law, UK constitutional law, Grundgesetz, Constitution of France, and United States constitutional law 5lthough the European Union does not have a formally codified constitution,[1! similar for e4ample to the United ?ingdom,[3! it does have a set of rules which necessarily constitute the procedures for making law. The primary sources are the Treaties establishing the European Union, which stipulate the functioning of the European Union, list its competences and determine the relations between the EU and its member states. These also contain the

rules for generating new laws, particularly *irectives and )egulations, through the European ,ommission, the ,ouncil of @inisters and the European 'arliament. The European ,ommission is in charge of a series of departments, and ultimately oversees the EU#s various agencies. Ultimately the European ,ouncil, composed of the 'rime @inisters, 'residents or ,hancellors of the member states, as it appoints the ,ommissioners and the heads of the European ,entral "ank. The European ,ourt of /ustice is the supreme -udicial body which interprets EU law, and has developed the progression of EU through its decided cases. .t is able to review the legality of the European Union#s actions, in compliance with the Treaties, as well as the actions of member states in their compliance with EU law.

Treaties[edit!
Main article: reaties of the European Union
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EU Treaties and accessions

The primary law of the EU consists mainly of the founding treaties of the European Union, also known as the TEU and TFEU or Treaties of the European Union. The Treaties contain formal and substantive provisions, which frame policies of the European Union institutionsand determine the division of competences between the European Union and the 1: member states. The TEU establish that European Union law applies to the metropolitan territories of the member states, as well as certain islands and overseas territories, including @adeira, the ,anaries and the French overseas departments. European Union law also applies in territories where a member state is responsible for e4ternal relations, for e4ample 6ibraltar and the Aland islands. The TEU allows the European ,ouncil to make specific provisions for regions, as for e4ample done for customs matters in 6ibraltar and +aintB'ierreBetB@iCuelon. The TEU specifically e4cludes certain regions, for e4ample the Faroe .slands, from the -urisdiction of European Union law. Treaties apply as soon as they enter into force, unless stated otherwise, and are generally concluded for an unlimited period. The Treaty of )ome provides that commitments entered into by the member states between themselves before the treaty was signed no longer apply. +ince the Treaty of )ome has been signed member states are regarded sub-ect to the general obligation of the principle of cooperation, as stated in the TEU, whereby member states pledge to not take measure which could -eopardise the attainment of the TEU ob-ectives. The ,ourt of /ustice of the European Union can interpret the Treaties, but it cannot rule on their validity which is sub-ect to international law. .ndividuals may rely on primary law in the ,ourt of /ustice of the European Union if the Treaty provisions have a direct effect and they are sufficiently clear, precise and unconditional.[%! The principal Treaties that form the European Union began with common rules for coal and steel, and then atomic energy, but more complete and formal institutions were established through theTreaties of )ome

<7: and the @aastricht Treaty <<1. @inor amendments were made during the <$=s and <:=s.[7! @a-or amending treaties were signed to complete the development of a single, internal market in the +ingle European 5ct <($, to further the development of a more social Europe in the Treaty of 5msterdam <<:, and to make minor amendments to the relative power of member states in the EU institutions in the Treaty of ;ice 1== and the Treaty of 2isbon 1==:. +ince its establishment, more member states have -oined through a series of accession treaties, from the U?, .reland, *enmark and ;orway in <:1 Dthough ;orway did not end up -oiningE, 6reece in <:<, +pain and 'ortugal <(7, 5ustria, Finland, ;orway and +weden in <<% Dthough again ;orway failed to -oin, because of lack of support in the referendumE, the ,9ech )epublic, ,yprus, Estonia, 0ungary, 2atvia, 2ithuania, @alta, 'oland, +lovakia and +lovenia in 1==%, and )omania and "ulgaria in 1==:. 6reenland signed a Treaty in <(7 giving it a special status. ;orway remains the only +candinavian power not to have -oined the European Union, having re-ected membership in two referenda, in <:1 and <<%.

Legislatures[edit!
Main articles: !egislature of the European Union, European "arlia#ent, and Council of the European Union

The debating chamber of the European 'arliament in Espace 2Fopold, "russels

The legislature of the European Union is principally composed of the European 'arliament and the ,ouncil of the European Union. European Union treaties allow for the adoption of legislation and other legal acts so as to allow the EU to pursue the ob-ective set out in the treaties. These are secondary European Union law. The treaties have not established any single body as a legislature. .nstead legislative power is spread out among the.nstitutions of the European Union, although the principal actors are the ,ouncil of the European Union Dor ,ouncil of @inistersE, the European 'arliament and the European ,ommission. The relative power of a particular institution in the legislative process depends on the legislative procedure used, which in turn depends on the policy area to which the proposed legislation is concerned. .n some areas, they participate eCually in the making of EU law, in others the system is dominated by the ,ouncil. Which areas are sub-ect to which procedure is laid down in the treaties of the European Union.

8rdinary legislative procedure

The ,ommission, ,ouncil and 'arliament can all create secondary law, which includes unilateral acts and agreements by the 2egislature of the European Union. Unilateral acts can be done under 5rticle 1(( of the TFEU, includingregulations, directives, decisions, opinions and recommendations. Unilateral acts not falling under 5rticle 1(( TFEU areatypical acts such as communications and recommendations, and white and green papers.

5greements can include international agreements, signed by the European Union, agreements between @ember +tatesG and interBinstitutional agreements, for e4ample between European Union institutions.[%! *irectives, regulations, decisions, recommendations and opinions constitute European Union legislation, which must have a legal basis in specific Treaty articles, or primary European law. *irectives set Dsometimes Cuite specificE ob-ectives but leave the implementation to the EU#s member states. )egulations are directly applicable to member states and take effect without the need for implementing measures.

Executive[edit!
Main articles: European Co##ission, European Council, European Ci$il Ser$ice, and European Central %an&

'olitical system of the European Union

The ,ommission of the European Union is the e4ecutive body, in the sense that it carries out the work of implementing and enforcing EU law. 5lthough there have been proposals to reCuire that the ,ommissioners are drawn from elected members of the European 'arliament, members remain chosen in bargaining among the various heads of member states. 5side from its legislative functions, the European ,ommission#s most important role is managing the bureaucracy of the EU#s various departments.

Judiciary[edit!
Main articles: Court of 'ustice of the European Union and European Court of (uditors The ,ourt of /ustice of the European Union is established through article < of the @aastricht Treaty and includes the ,ourt of /ustice, the 6eneral ,ourt and specialised courts. .ts duty is to Hensure that in the interpretation and application of the Treaties the law is observedH. The ,ourt of /ustice consists of one -udge from each European Union member state, and the 6eneral ,ourt includes at least one -udge from each member state. /udges are appointed for a renewable si4Byear term. .t is the role of the ,ourt of /ustice to rule, in accordance with the Treaties, on cases brought by a member state, a European Union institution or a legal person. The ,ourt of /ustice can also issue preliminary rulings, at the reCuest of a member state#s courts or tribunals, on the interpretation of European Union law or the validity of acts by European Union institutions. The ,ourt of /ustice can rule in other cases if they are provided for in the Treaties.[$! +upplementary sources of EU law are uncodified sources, including ,ourt of /ustice of the European Union case law, international law and the general principles of law. +upplementary sources are generally of -udicial origin and are used by the ,ourt of /ustice of the European Union in cases where the primary andIor secondary legislation leave gaps or do not settle the issue. +ince the <:=s fundamental rights, recognised as general principles of European Union law, have become part of primary legislation in European Union law. The European Union and its member states must abide by international law, including its treaties and customary law, and has particularly influenced the development of general principles of European Union law. 0owever, the ,ourt of /ustice of the

European Union can e4cluded certain principles of international law that it considers incompatible with the structure of the European Union, such as the principle of reciprocity in the fulfilment of state obligations.[:!

,onflict of laws[edit!
European Union law is applied by the courts of member states and where the laws of member states provide for lesser rights than European Union law, European Union law can be enforced by the courts of member states. .n case of European Union law which should have been transposed into the laws of member states, such as *irectives, the European ,ommission can take proceedings against the member state under the E, Treaty. The ,ourt of /ustice of the European Union is the highest court able to interpret European Union law.[(! European Union law which can be directly enforced by courts in member states is said to have direct effect.[<! +imon 0i4 argues that direct effect and the supremacy doctrine has transformed the EU from an international organisation to a HCuasifederal polityH.[
=!

5ccording to /.0.0. Weiler, parallels to the architecture of the European

!

Union can be found only in the internal constitutional order of federal states.[

+ergio Fabbrini argues that

the European Union developed after the two world wars as Europe moved towards supernationalism with a multiB level system of governance. >ertical federalisation is mi4ed with hori9ontal separation of powers between the European ,ommunity institutions and therefore the EU does not conform to the structures of a conventional federal system.[
1!

Effect of EU law[edit!
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Direct effect cases

Main articles: )irect effect and *ndirect effect .n +an Gend en !oos $ ,ederlandse (d#inistratie der %elastingen D <$3E,[
3!

the European ,ourt of /ustice

DE,/E ruled that the provisions of the then EE, treaty were capable of having direct effect before the national courts of EE, member states. The result was to create an alternative manner of enforcing the obligations undertook by member states in the treaties, to the more traditional method of state enforcement in the form of enforcement actions taken by the European ,ommission at a supranational level. .ndividuals could now use national courts to invoke EU treaty provisions against member state governments. The preBconditions for direct effect are that the provisions on which an individual wishes to rely are sufficiently clear and unconditional, and that there is no scope for member states to e4ercise discretion in implementation. Thus, a regulation that allows member states to privatise roads would not have direct effect and could not be enforced in the courts, because it provides that states #ay privatise roads, not #ust privatise roads. While direct effect was first developed in relation to treaty articles, the E,/ subseCuently ruled that regulations and decisions could also have direct effect

as well.[

%!

.n Marshall $ Southa#pton and South -est (rea Health (uthority . eaching/ .,o 0/,[

7!

the E,/ ruled

that while directives could also have direct effect, they could only do so in respect of public bodies. 0owever, the E,/ has taken a broad view of what constitutes a public body and has found that a stateBowned gas company was a public body sub-ect to direct effect.[ effect against private entities.[
:! $!

.n contrast treaty articles, regulations and decisions can have direct

)ecommendations and opinions were held to not have direct effect, as they were

not intended to be binding, though they should be taken into consideration when interpreting the European Union law they supplement or the national law they implement.[
(!

.ndirect effect describes a situation where the courts in member states use European Union law to interpret national laws, as oppose to direct effect where European Union law is applied directly. Treaty articles, )egulations and *ecisions can all have direct effect e4cept where they are unclear or conditional. .n such cases they may have indirect effect, but are unlikely to be of much use for interpreting national laws. )ecommendations and 8pinions cannot have direct effect, but may have indirect effect, when interpreting the European Union law they supplement or national laws, as established in Gri#aldi $ Fonds des Maladies "rofessionnelles [ <(<! E,) %%=: ,ase ,B311I((. +on Colson and Ka#ann $ !and ,ordrhein1-estfalen [ <(%! E,) (< ,ase %I(3 established that *irectives can have indirect effect in where an individual takes action in a national court against another individual, where a *irective can never have direct effect, or where the provision of the directive is not sufficiently clear and unconditional to have direct effect.[
<!

Franco$ich $ *taly D <<=E[1=! reCuires that the state pays compensation to individuals if it fails to properly implement a *irective.

Supremacy[edit!
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EU law priority cases

Main article: Supre#acy .European Union law/ .n Costa $ E,E! [ <$%! E,) 7(7 the European ,ourt of /ustice held that in situations where there is a conflict between the laws of member states and European Union law, European Union law prevails, because Ha subseCuent unilateral act incompatible with the concept of the ,ommunity cannot prevailH. 0owever, according to the <<3 @aastricht 5ccord the European Union does not prevent member states from maintaining or introducing more stringent laws on working conditions, social policy, consumer protection and the environment, so long as these laws are compliant with the Treaty of )ome, which has relevant provisions in these areas. +ome courts in member states have resented the supremacy doctrine though it is not commonly challenged and the European ,ourt of /ustice has encouraged legal interpretation in light of European Union law by courts in member states as

alternative to repealing or amending laws of member states which conflict with European Union law. 5 source of tension has historically been the relationship between the constitutions of member states and European Union law. Unlike the U?, most continental European member states have written constitutions and some have constitutional courts with the e4clusive power to interpret the national constitution. The European ,ourt of /ustice has rules that such courts must apply European Union law in its entirety, to avoid any conflicting provisions of national law. Until recently the French constitutional court has regarded itself not empowered to review administrative measures, as it did not recognise the review power and duty provided to it by European Union law. The 6erman and .talian constitutional courts initially refused to strike down national laws which conflicted with European Union law. The legal system of the European Union depends heavily on the courts in member states to acknowledge and uphold European Union law, and to follow the interpretation of the European ,ourt of /ustice if there is one. The supremacy doctrine has found widespread acceptance, though the direct and indirect application of European Union law still needs to fully establish itself.[1
!

International law[edit!
Main articles: "u2lic international law and European Con$ention on Hu#an 3ights The European ,ourt of /ustice, although technically autonomous, is practically reCuired to take account of international law in its decision making.

/us cogens norms European ,onvention on 0uman )ights

5dministrative law[edit!
See also: (d#inistrati$e law and United States ad#inistrati$e law

Judicial review[edit!
Main article: 'udicial re$iew

'reliminary rulings +tanding to claim -udicial review 6rounds of review

General principles[edit!
Main article: General principles of European Union law The principles of European Union law are rules of law which have been developed by the European ,ourt of /ustice that constitute unwritten rules which are not e4pressly provided for in the treaties but which affect how European Union law is interpreted and applies. .n formulating these principles, the courts have drawn on a variety of sources, includingJ public international law and legal doctrines and principles present in the legal systems of European Union member states and in the -urisprudence of the European ,ourt of 0uman )ights. 5ccepted general principles of European Union 2aw include fundamental rights Dsee human rightsE, proportionality, legal certainty,[11! eCuality before the law and subsidiarity.[13!

'roportionality is recognised one of the general principles of European Union law by the European ,ourt of /ustice since the <7=s.[1%! 5ccording to the general principle of proportionality the lawfulness of an action depends on whether it was appropriate and necessary to achieve the ob-ectives legitimately pursued. When there is a choice between several appropriate measures the least onerous must be adopted, and any disadvantage caused must not be disproportionate to the aims pursued.[1%! The principle of proportionality is also recognised in 5rticle 7 of the E, Treaty, stating that Hany action by the ,ommunity shall not go beyond what is necessary to achieve the ob-ectives of this TreatyH.[17! The concept of legal certainty is recognised one of the general principles of European Union law by the European ,ourt of /ustice since the <$=s.[1$! .t is an important general principle of international law and public law, which predates European Union law. 5s a general principle in European Union law it means that the law must be certain, in that it is clear and precise, and its legal implications foreseeable, specially when applied to financial obligations. The adoption of laws which will have legal effect in the European Union must have a proper legal basis. 2egislation in member states which implements European Union law must be worded so that it is clearly understandable by those who are sub-ect to the law.[1:! .n European Union law the general principle of legal certainty prohibits E4 post facto laws, i.e. laws should not take effect before they are published.[1$! The doctrine of legitimate e4pectation, which has its roots in the principles of legal certainty and good faith, is also a central element of the general principle of legal certainty in European Union law.[1(! The legitimate e4pectation doctrine holds that and that Hthose who act in good faith on the basis of law as it is or seems to be should not be frustrated in their e4pectationsH.[1:!

Human rig ts[edit!

Main articles: Charter of Funda#ental 3ights of the European Union and European Con$ention on Hu#an 3ights Fundamental rights, as in human rights, were first recognised by the European ,ourt of /ustice in the late $=s and fundamental rights are now regarded as integral part of the general principles of European Union law. 5s such the European ,ourt of /ustice is bound to draw inspiration from the constitutional traditions common to the member states. Therefore the European ,ourt of /ustice cannot uphold measures which are incompatible with fundamental rights recognised and protected in the constitutions of member states. The European ,ourt of /ustice also found that Hinternational treaties for the protection of human rights on which the member states have collaborated or of which they are signatories, can supply guidelines which should be followed within the framework of ,ommunity law.H[1<! ;one of the original treaties establishing the European Union mention protection for fundamental rights. .t was not envisaged for European Union measures, that is legislative and administrative actions by European Union institutions, to be sub-ect to human rights. 5t the time the only concern was that member states should be prevented from violating human rights, hence the establishment of the European ,onvention on 0uman )ights in <7= and the establishment of the European ,ourt of 0uman )ights. The European ,ourt of /ustice recognised fundamental rights as general principle of European Union law as the need to ensure that European Union measures are compatible with the human rights enshrined in member states# constitution became ever more

apparent.[3=! .n <<< the European ,ouncil set up a body tasked with drafting a European ,harter of 0uman )ights, which could form the constitutional basis for the European Union and as such tailored specifically to apply to the European Union and its institutions. The ,harter of Fundamental )ights of the European Union draws a list of fundamental rights from the European ,onvention on 0uman )ights and Fundamental Freedoms, the *eclaration on Fundamental )ights produced by the European 'arliament in <(< and European Union Treaties.[3
!

The 1==: 2isbon Treaty e4plicitly recognised fundamental rights by providing in 5rticle $D E that HThe Union recognises the rights, freedoms and principles set out in the ,harter of Fundamental )ights of the European Union of : *ecember 1===, as adopted at +trasbourg on 1 *ecember 1==:, which shall have the same legal value as the Treaties.H Therefore the ,harter of Fundamental )ights of the European Union has become an integral part of European Union law, codifying the fundamental rights which were previously considered general principles of European Union law.[31!.n effect, after the 2isbon Treaty, the ,harter and the ,onvention now coBe4ist under European Union law, though the former is enforced by the European ,ourt of /ustice in relation to European Union measures, and the latter by the European ,ourt of 0uman )ights in relation to measures by member states.[33!

!emedies for "reac [edit!

*amages actions @oney claims ;o specific performanceK

+ocial and market regulations[edit!

La"our law[edit!
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EU equality sources

Main articles: European la2our law, *nternational !a2our 5rganisation, US la2or law, UK la2our law, Ger#an la2our law, and French la2our law

*emonstration for parental leave in theEuropean 'arliament.

The +ocial ,hapter is a chapter of the <<: Treaty of 5msterdam covering social policy issues in European Union law.[3%! The basis for the +ocial ,hapter was developed in <(< by the Hsocial partnersH representatives, namely U;.,E, the employers# confederation, the European Trade Union ,onfederation DETU,E and ,EE', the European ,entre of 'ublic Enterprises. 5 toned down version was adopted as the +ocial ,harter at the <(< +trasbourg European ,ouncil. The +ocial ,harter declares 3= general principles, including on fair remuneration of employment, health and safety at work, rights of disabled and elderly, the rights of workers, on vocational training and improvements of living conditions. The +ocial ,harter became the basis for European ,ommunity legislation on these issues in %= pieces of legislation.[3%! The +ocial ,harter was subseCuently adopted in <(< by of the then 1 member states. The U? refused to

sign the +ocial ,harter and was e4empt from the legislation covering +ocial ,harter issues unless it agreed to be bound by the legislation. The U? subseCuently was the only member state to veto the +ocial ,harter being included as the H+ocial ,hapterH of the <<1 @aastricht Treaty B instead, an 5greement on +ocial 'olicy was added as a protocol. 5gain, the U? was e4empt from legislation arising from the protocol, unless it agreed to be bound by it. The protocol was to become known as H+ocial ,hapterH, despite not actually being a chapter of the @aastricht Treaty. To achieve aims of the 5greement on +ocial 'olicy the European Union was to Hsupport and complementH the policies of member states. The aims of the 5greement on +ocial 'olicy areJ[3%! Hpromotion of employment, improving living and working conditions, proper social protection, dialogue between management and labour, the development of human resources with a view to lasting high employment and the combating of e4clusionH[3%! Following the election of Tony "lair as U? 'rime @inister in <<: the U? formally subscribed to the 5greement on +ocial 'olicy, which allowed it to be included with minor amendments as the +ocial ,hapter of the <<: Treaty of 5msterdam. The U? subseCuently adopted the main legislation previously agreed under the 5greement on +ocial 'olicy, the <<% Works ,ouncil *irective, which reCuired workforce consultation in businesses, and the <<$ 'arental 2eave *irective.[3%! .n the = years following the <<: Treaty of 5msterdam and adoption of the +ocial ,hapter the European Union has undertaken policy initiatives in various social policy areas, including labour and industry relations, eCual opportunity, health and safety, public health, protection of children, the disabled and elderly, poverty, migrant workers, education, training and youth.[37!

.nstitutions for 8ccupational )etirement 'rovision *irective

Consumer protection[edit!
See also: Consu#er protection

'roduct 2iability *irective Unfair ,ommercial 'ractices *irective Unfair Terms in ,onsumer ,ontracts *irective

#inancial mar$et regulation[edit!

@arkets in Financial .nstruments *irective

Company law[edit!
Main article: European co#pany law

+ocietas Europaea Employee .nvolvement *irective .nsolvency *irective

%"ligations and property[edit!

Main articles: Conflict of laws and *ntellectual property 6enerally, there is no EU regulation of private law, rather than a collection of various initiatives. The main e4ception is in intellectual property rights.

)ome . )egulation )ome .. )egulation 'rinciples of European ,ontract 2aw 'rinciples of European Tort 2aw * 2ec9ykiewic9 and + Weatherill, he *n$ol$e#ent of EU !aw in "ri$ate !aw 3elationships D1= 3E ,opyright *irective ,opyright *uration *irective ,opyright Term *irective European Union patent Trade @arks *irective

Competition law[edit!
Main article: EU co#petition law EU ,ompetition law has its origins in the European ,oal and +teel ,ommunity DE,+,E agreement between France, .taly, "elgium, the ;etherlands, 2u4embourg and 6ermany in <7 following the second World War. The agreement aimed to prevent 6ermany from reBestablishing dominance in the production of coal and steel as it was felt that this dominance had contributed to the outbreak of the war. 5rticle $7 of the agreement banned cartels and article $$ made provisions for concentrations, or mergers, and the abuse of a dominant position by companies.[3$! This was the first time that competition law principles were included in a plurilateral regional agreement and established the transBEuropean model of competition law. .n <7: competition rules were included in the Treaty of )ome, also known as the E, Treaty, which established the European Economic ,ommunity DEE,E. The Treaty of )ome established the enactment of competition law as one of the main aims of the EE, through the Hinstitution of a system ensuring that competition in the common market is not distortedH. The two central provisions on EU competition law on companies were established in article (7, which prohibited antiBcompetitive agreements, sub-ect to some e4emptions, and article ($ prohibiting the abuse of dominant position. The treaty also established principles on competition law for member states, with article <= covering public undertakings, and article <1 making provisions on state aid. )egulations on mergers were not included as member states could not establish consensus on the issue at the time.[3:! Today, the Treaty of 2isbon prohibits antiBcompetitive agreements in 5rticle = D E, including price fi4ing. 5ccording to 5rticle = D1E any such agreements are automatically void. 5rticle = D3E establishes e4emptions, if

the collusion is for distributional or technological innovation, gives consumers a Hfair shareH of the benefit and does not include unreasonable restraints that risk eliminating competition anywhere Dor compliant with the general principle of European Union law of proportionalityE. 5rticle =1 prohibits the abuse of dominant position, such as price discrimination and e4clusive dealing. 5rticle =1 allows the European ,ouncil to regulations to govern mergers between firms Dthe current regulation is the )egulation 3<I1==%IE,E.
[3(!

The general test is whether a concentration Di.e. merger or acCuisitionE with a community dimension Di.e.

affects a number of EU member statesE might significantly impede effective competition. 5rticles =$ and =: provide that member state#s right to deliver public services may not be obstructed, but that otherwise public enterprises must adhere to the same competition principles as companies. 5rticle =: lays down a general rule that the state may not aid or subsidise private parties in distortion of free competition and provides e4emptions for charities, regional development ob-ectives and in the event of a natural disaster.

Free movement and trade[edit!

Main articles: *nternal Mar&et .European Union/, -orld rade 5rganisation, and United ,ations The core of European Union economic and social policy is summed up under the idea of the four freedoms B free movement of goods, capital, services and persons. +ometimes, they are also counted up as five freedoms, namely the free movement of goods, capital, services, workers and the freedom of establishment, but the difference is merely in denomination, they both refer to the same areas of substantive law.

Goods[edit!
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Free movement of goods

Main article: *nternal Mar&et .European Union/

This section requires expansion. (January 2012)

&or$ers and citi'ens[edit!

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Free movement of people

Main article: Freedo# of #o$e#ent for wor&ers Free movement of economically active workers is guaranteed under TFEU article %7.
This section requires expansion. (January 2012)

Services and esta"lis ment[edit!

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Free movement of services sources

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Cases on establishment

Main article: *nternal Mar&et .European Union/

This section requires expansion. (January 2012)

Capital[edit!
Main article: EU co#pany law
This section requires expansion. (January 2012)

'ublic regulation[edit!
Taxation[edit!

European Union value added ta4

European Union withholding ta4 European Union financial transaction ta4 DproposalE

Environmental law[edit!
Main article: En$iron#ental law

Energy policy of the European Union Environmental policy of the European Union

(atural resource management[edit!

See also: (gricultural su2sidy and (griculture in the United States

,ommon 5gricultural 'olicy ,ommon Fisheries 'olicy

)ata and information[edit!

*ata )etention *irective *atabase *irective *irective on 'rivacy and Electronic ,ommunications *irective on the reBuse of public sector information

#oreign policy[edit!
Main article: Co##on Foreign and Security "olicy

Criminal law[edit!
Main article: (rea of freedo#, security and 6ustice .n 1==$, a to4ic waste spill off the coast of ,Lte d#.voire, from a European ship, prompted the ,ommission to look into legislation against to4ic waste. Environment ,ommissioner +tavros *imasstated that H+uch highly to4ic waste should never have left the European UnionH. With countries such as +pain not even having a crime against shipping to4ic waste, Franco Frattini, the /ustice, Freedom and +ecurity ,ommissioner, proposed with *imas to create criminal sentences for Mecological crimesN. The competence for the Union to do this was contested in 1==7 at the ,ourt of /ustice resulting in a victory for the ,ommission.[3<! That ruling set a precedent that the ,ommission, on a supranational basis, may legislate in criminal law O something never done before. +o far, the only other proposal has been the draft intellectual property rights directive.[%=! @otions were tabled in the European 'arliament against that legislation on the basis that criminal law should not be an EU competence, but was re-ected at vote.[% ! 0owever, in 8ctober 1==:, the ,ourt of /ustice ruled that the ,ommission could not propose what the criminal sanctions could be, only that there must be some.[%1!

+ee also[edit!

Union European Union portal oo!" European

5rea of freedom, security and -ustice ,harter of Fundamental )ights of the European Union ,ommunity patent ,orpus /uris or 5cCuis *irective <7I%$IE, on the protection of personal data Eudra2e4 EU)B2e4 European ,ase 2aw .dentifier DE,2.E European ,ompany and ,ooperative+tatutes European 2egislation .dentifier DE2.E European ;5vigator 6oldBplating 0ome state regulation 0ost state regulation .ncidental effect 2ist of European ,ourt of /ustice rulings @aster of European 2aw @a4imum harmonisation @inimum harmonisation +upranational law

;otes[edit!
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Francis. p. (3. .+"; <:(B=B% 7B3:= 1B:. Jump up* 'apadopoulos, 5nestis + D1= =E. he *nternational )i#ension of EU Co#petition !aw and

"olicy. ,ambridge University 'ress. p. 3. .+"; <:(B=B71 B <$%$B(. Jump up* 'apadopoulos, 5nestis + D1= =E. he *nternational )i#ension of EU Co#petition !aw and

"olicy. ,ambridge University 'ress. p. %. .+"; <:(B=B71 B <$%$B(. Jump up* ,ouncil )egulation DE,E ;o 3<I1==% of 1= /anuary 1==% on the control of concentrations

between undertakings Dthe E, @erger )egulationE Jump up* ,ase ,B :$I=3 Co##ission $ Council Jump up* ,harter, *avid D1==:E. H5 new legal environmentH. E8SharpD'eople 'ower 'rocessE. pp. 13O7. Jump up* 6argani, 6iuseppe D1==:E. H.ntellectual property rightsJ criminal sanctions to fight piracy and

counterfeitingH.European 'arliament. )etrieved 3= /une 1==:. Jump up* @ahony, 0onor D13 8ctober 1==:E. HEU court delivers blow on environment sanctionsH. EU

8bserver. )etrieved 13 8ctober 1==:.G ,ase ,B%%=I=7 Co##ission $ Council

)eferences[edit!
-oo$s

5 8#;eill, EU !aw for UK !awyers D0art 1=

E E

' ,raig and 6 de "Urca, EU !aw: e4t, Cases and Materials D7th edn 8U' 1= 6 "eck, he !egal 3easoning of the Court of 'ustice of the EU D0art 1= 3E

, "arnard, he Su2stanti$e !aw of the EU: he Four Freedo#s D1nd edn 8U' 1==:E

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