2nd Year B.A. LL. B (Div.

-D and E) – Semester-III (2022)

1st -Internal Assessment

Principles and Foundations of EU Law

Research Article
On
The four freedoms of the European Union

NAME: Vaibhavi Agrawal

DIVISION: D

PRN: 21010125386

COURSE: BA LL.B. (H)

BATCH: 2021-2026
 ABSTRACT
The free flow of products, people, services, and capital throughout the European Union is
guaranteed by the "four freedoms." They are the bedrock on which the European Union's
Single Market and the Euro are built. They are regarded by many as Europe's crowning
achievement in its unification process. The possibility to live and work in any EU country,
known as "free movement," has been back on the table since Brexit. It is technically
conceivable to divide the four freedoms, but is it politically sensible?
 INTRODUCTION

In 1992, the European Union formed a vast European Single Market that comprises its 28
Member States in addition to Liechtenstein, Iceland, Norway, and Switzerland. [1] It
guarantees the free movement of goods, services, capital, and people through its four
freedoms. With 4.325 million square kilometres and 493 million inhabitants, it is one of the
world's largest internal markets. Due to the elimination of border formalities, individuals are
free to choose their housing, university, and location of employment. In addition, the
increasing quantity of goods followed by a significant increase in market rivalry in the EU
results in a price advantage for consumers and, consequently, a competitive position on the
worldwide market.

In addition, the European Union enacted several rules and measures to govern the home
market in 2001, including as the introduction of a common currency.

In addition, particular minimum standards, common environmental standards, energy policy

measures, consumer protection arrangements, a common transport policy, research funding,
and a solidary contribution for less developed Member States exist or are in the process of
being implemented in the new regions that have joined the EU.

Regarding the application of these regulations, however, there is considerable space for
improvement.

In actuality, critics believe that the transformation of normal markets in separate countries
into an internal market for all countries is a problematic strategy with unforeseeable future
detrimental side consequences.

Due to this, the Research emphasises a substantial description of the four freedoms of the
European Union's Single Market. Second, the primary advantages and disadvantages of intra-
European trade are identified and analysed.

The ECJ's decisions and the initial laws have laid the foundation for a united market. These
four freedoms are the physical pillars upon which the united market aspires to construct its
palace. The ECJ, as the final judge, has developed a coherent body of law based on
legislation and its own decisions. Each of the four freedoms corresponds to a key concept for
the single market, which will be elucidated using significant ECJ decisions.
 A BRIEF UNDERSTANDING OF THE ECJ

The ECJ is the EU's highest court on areas of Union law. It is frequently misinterpreted as the
nation's highest court and source of their governing laws. Instead, the Supreme Court is
solely responsible for "Union laws." Nonetheless, national courts resort to the ECJ subjects
and issues pertaining to Union law. Since its official inception in 1952, the ECJ has been the
driving force behind the consistent execution of EU rules. It is comprised of one judge from
each EU member state, for a total of 27 judges. Depending on the intensity and seriousness of
the case at hand, the Court hears matters with three, five, or fifteen judges.

In a figurative sense, the ECJ gives current accords flesh and blood and leads the formulation
of new legislation and treaties that must comply with its doctrine. Legislations, treaties, and
articles are ineffective if they are not consistently interpreted according to their best-intended
intent, while allowing for deviations due to external changes. Recognizing and
comprehending the ECJ's position becomes of the utmost importance in light of this. By
resolving several disputes of law and interpreting the law, the ECJ keeps legislation alive and
defines the legal standing of a particular issue.

Certain preliminary judgements from the ECJ and a number of other landmark cases on the
integration of national economies and the construction of an united market are sufficient to
assert that the ECJ has been the key player in the development of the European unified
market. Understanding the role of the ECJ by separately studying its case law is a taxing
endeavour. The aforementioned four freedoms will aid in the classification of cases and
facilitate the analytical process. Obviously, we will now examine the four freedoms in light
of the ECJ's decisions.
 THE FREE MOVEMENT OF GOODS

The free movement of goods is one of the four freedoms of the Single Market of the
European Union that derives from the compact establishing the European Community.

It consists of the tariff union and the prohibition of quantitative restrictions on imports and
exports of goods, in addition to additional measures that produce comparable results.

A tariff union is an alliance of many sovereign nations forming a customs territory with the
agreement of duty-free trade among themselves and a duty-unification with third nations.

As stated in the Treaties of the European Union, this arrangement will provide cross-border
transport among the interconnected EU Member States while simultaneously facilitating
unrestricted intracommunity commerce. The control of such freedom of movement
encompasses all products that are movable commodities in a commercial transaction and
must have a commercial worth. The inclusion of goods from third-party countries means that
the commodities do not need to originate from a member state of the European Union if they
are in the process of free movement within those territories.

In addition, the European Court of Justice devised the so-called Dassonville-formula, which
identifies state-run measures that are enough to restrict the commercial interplay between
member states in a possible, direct or indirect manner, i.e., any trade barrier.

The restriction of the free circulation of commodities only applies to products on the market
that originate from the Member States Community or are involved in the free commerce
between these regions.

According to the Keck-formula, however, national designations such as store closing times,
advertising restrictions, and age restrictions for specific goods are expressly exempt from the
European Union's treaties.

However, the compact states that the free movement regulation may be restricted if necessary
for the preservation of human life, when the health of individuals, animals, or plants is at risk,
or due to consumerism and environmentalism.
 THE FREE MOVEMENT OF PEOPLE

The second freedom of the Internal Market of the European Union is the Free Movement of
People. It includes and refers to the free mobility of workers, free settlement, and the
systematic freedom of services among Member States.

The Free Movement of People ensures that all citizens are treated equally. In reality, a
person's nationality has no bearing on their employment status. It is explicitly stated in the
Treaties of the European Union that discrimination based on a person's country of origin is
prohibited. In addition, a rule has been adopted that prohibits national discrimination with
regard to rights obtained overseas. However, indirect restrictions such as labour legislation
laws are not affected by this criterion, regardless of whether they are based on objective
characteristics and apply to all citizens of the Member States regardless of nationality.

The Treaties defend, first and foremost, the right to gainful employment in the public and
private sectors, where the worker must be treated fairly. Moreover, EU citizens are permitted
to enter and remain in all Member States.

This is the foundation for the unrestricted mobility of employees, who can now move and
seek employment anywhere in the European Union. In addition, they are permitted to
continue living in the country after leaving their jobs. Even the proper family members of the
employed are included and have the right to reside. Companies and labour unions are also
implied.

In fact, the law applies not only to employed residents but also to students and apprentices.
Moreover, private persons are required to enter into wage-equal contracts for tariffs and
individual employment agreements so that no EU resident is discriminated against.

As none of the EU's four freedoms are unrestricted, the Free Movement of People can be
limited differently for reasons of health, security, and protection.
 THE FREEDOM OF SERVICES

Another freedom within the European Union is the so-called Freedom of Services, which
applies exclusively to EU residents.

A service is an activity that can be performed in all Member States across national borders,
and it is typically provided for compensation. The laws on the Freedom of Services in the
Treaties of the European Union cover the regulations of all services not previously addressed
in other articles concerning the fundamental freedoms. These services are under the scope of
industrial, commercial, and technical freelance work.

Moreover, this type of flexibility relates more to product transit — import and export — than
to labour. In this instance, service and residence in a foreign Member State are limited
temporarily. However, according to the Free Movement of People, everyone who provides a
service has the right to be treated equally and without regard to nationality.

The European Union protects all services, including both the domestic and international
supply and receiving of services.

In accordance with the Treaties, it is banned to restrict any service unless such a restriction is
justifiable and in the public interest, for the protection of EU people.
 THE FREEDOM OF MOVEMENT OF CAPITAL

The free flow of capital enables the most efficient deployment of this scarce economic
resource. It allows capital to travel freely inside and beyond an economic region. In an
efficient capital market, cash flows to destinations and investments where its usage is most
productive and hence yields the maximum return. In economics, this approach is referred to
as efficient resource allocation. This is not always the case.

Significantly increased competition among market participants seeking capital and appealing
funding within an economic area is a significant result of this application of the fundamental
economic freedom of free capital mobility. However, this competition is not limited to
private investors or public companies trying to obtain funds. National and regional economic
systems are competing globally for the most alluring source of funding. Such competition can
be intense and, in some instances, can result in a diminution or even a whole loss of
macroeconomic sovereignty for entire governments.
 CONCLUSION

A truly united market is still in the works after years of evolving jurisprudence, directives,
and treaties, and global trends. The ECJ must follow developments and reforms to promote
the single market. Judges' reasoning shows the ECJ's success. The ECJ's jurisprudence will
be remembered for creating a single market.
 REFERENCES

 https://aec-music.eu/userfiles/File/30-free-movement-of-musicians-in-the-eu.pdf
 https://en.wikipedia.org/wiki/European_Single_Market
 https://www.coleurope.eu/system/files_force/research-paper/beep41.pdf?download=1
 https://www.sciencedirect.com/topics/earth-and-planetary-sciences/single-european-
market
 https://ec.europa.eu/info/sites/info/files/business_economy_euro/
banking_and_finance/documents/160223-guide-case-law-free-movement-
capital_en.pdf