EU Internal Market Law 1

Introduction
The European Internal Market
European and International Business Law LLM
EU LAW COURSES
Legal sources and reading materials
Provisions of the EU founding treaties (TEU and
TFEU)
Secondary legislation and policy papers issued by the
EU institutions
Case-law of the Court of Justice of the European
Union (CJEU or ECJ)
Text-books, articles, legal literature recommended by
the instructor, see as a starting point: Craig, P, and De
Búrca, G. EU Law: Text, Cases and Materials (6th
edition, Oxford University Press, 2016)
Requirements for completion
Students are expected to attend classes and participate
actively.

Each student shall submit a short essay [at least 10,000

and no more than 15,000 characters including spaces,
footnotes and bibliography] written in English on a
selected topic discussed in the course. Details (topic,
sources, etc.) should be consulted with the instructor
(I. Bartha, bartha.ildiko@gmail.com)
I. What is a market?

An actual place, geographical area (or virtual market

place)
where buyers and sellers interact (directly or through
intermediaries) to trade goods, services or other
instruments
(usually) for money [or in the form of barter]
Levels of market integration
National market

Regional economic integration (f. e. EU)

Global market
Regional economic integrations
A regional trading bloc is a group of countries within a
geographical region that
 protect themselves from imports from non-members
in other geographical regions, and
 intend to make trade relations more intensive with
each other.
Stages of economic integrations
Preferential free trade area:
A trade pact between countries that reduces tariffs
for certain products to the countries
who sign the agreement. While the tariffs are not
necessarily eliminated, they are lower than countries
not party to the agreement. Example: Economic
Cooperation Organisation (ECO) of 1992 (for today,
the ECO developed into a free trade area)
Free trade area:
A free trade area allows free-trade in goods among
members, but each member can have its own trade
policy towards non-member countries. Example :
The North American Free Trade Agreement (NAFTA)
Customs union:
A customs union allows free trade in goods among
members and requires a common external trade
policy towards non-member countries. Example:
Southern African Customs Union (SACU) of 1969

Common market
A common market is not only a customs union but
also aims to ensure the four economic freedoms (free
movement of goods, persons, services and capitals)
among members. Example : The European Union (EU)
The Treaty, by establishing a common market and
progressively approximating the economic policies of the
Member States seeks to unite national markets in a
single market having the characteristics of a domestic
market.
(Case 207/83 Commission v UK [1985] ECR 1202.)
What is the Common Market/EU Internal
Market/ Single European Market all about?
Internal market (ex common market):
 Liberalisation of four economic factors (4
freedoms: Free movement of goods; Free movement of
persons; Free movement of capital; Free movement of
services)
 Plus: ‚common (sectoral) policies’: Agriculture,
competition, social policy, etc.

Single market: Refers exclusively to the four freedoms

Concept of the European internal market

Art. 26(2) TFEU:

„The internal market shall comprise

an area without internal frontiers in which
the free movement of goods, persons, services and capital
is ensured in accordance with the provisions of the Treaties.”
Stakeholders
Citizens
Consumers
Organizations representing special interests (labor O.;
trade unions; Greenpeace etc.)
NGOs
Companies (incl. State-owned Companies)
States (Trading interest v. national interest…?)
Techniques of Economic Integration:
Negative integration
Treaty provisions which prohibit states from having
or
creating unjustified barriers to the free movement of g
oods persons, services and capital

Positive integration
the Treaty gives the power to the EU to legislate to
remove obstacles to free movement created by
divergent national laws
Scope of application of the internal
market rules
Cross-border activities

Activities having an economic value

Only states are obliged by certain internal market

rules