EU Internal Market and Regulations Quiz

Course Outline

• The course will examine how the EU impacts daily business operations.
• It will analyze regulatory compliance challenges faced by stakeholders.
• It will explore the key economic effects of EU regulations.

Course Structure

• Part 1: Internal Market
• Part 2: Competition Law
• Part 3: GDPR
• Part 4: Labour Law

Learning Goals

• Analyze the legal foundations and history of European economic integration.
• Identify and analyze key concepts, legal provisions, and CJEU cases related to the EU's internal market to advise clients on the four freedoms.

Why do this?

• The Internal Market is central to EU law, encompassing legal, political, and economic concepts.
• The CJEU's interpretation provides context and relevance to EU law.
• Understanding the historical development of EU law is crucial.

Structure of Today

• Stages of economic integration
• Historical development.
• How integration takes place.
• Types of market integration
• Definitions of market and consumer.

Stages of Economic Integration

• 1. Free Trade Area: States eliminate customs duties and quotas on trade between them
• 2. Customs Union: Common external tariff on goods entering the union
• 3. Common Market: Free movement of goods, services, labor, and capital
• 4. Economic Union: Combining common market and customs union
• 5. Economic and Monetary Union: Complete unification of monetary and fiscal policy, common currency (like the Eurozone).

Stages of Economic Integration – Free Trade Area

• States remove customs duties and quotas on trade between them
• Numerical limits (quotas) on imports/exports
• Additional fees (customs duties) on imports/exports based on border crossing.

Stages of Economic Integration – Customs Union

• Members eliminate tariffs and quotas between each other.
• Establish a common external tariff on goods entering the union.
• Avoids a "race to the bottom" on tariffs and quotas.

Stages of Economic Integration – Common Market

• Free movement of goods, services, labor, and capital.
• Aim for optimal resource allocation and efficient production.
• The "four freedoms" of goods, capital, services, and people are key concepts.

Stages of Market Integration – Economic Union

• Combination of the common market and customs union.

Stages of Market Integration – Economic and Monetary Union

• Complete unification of monetary and fiscal policy.
• A common currency (like the Euro).
• Not a full unification of fiscal policy, even within the Eurozone.

Stages of Economic Integration

• Colored map showing integration levels
• Most integrated: monetary union.
• Less integrated: free trade area.

Methods of Market Integration – How Do You Make a Common Market?

• Difficult and elaborate, especially across multiple states.
• Numerous contrasting laws require a resolution mechanism.

Methods of Market Integration – Multiple Theoretical Models

• Managing balance between regulation/control and economic freedoms
• No single pure model exists.
• Integration varies in degrees and application.

Methods of Market Integration – Host Country Control

• The country where activity takes place holds regulatory control.
• Usual economic model for state interactions
• includes local worker and goods standards regulations.

Methods of Market Integration – Harmonized Model

• Single regulatory framework for the whole market.
• Products/services comply with centralized rules.
• Member states retain some control, often regarding minimum rules.

Methods of Market Integration – Home Country Control

• Regulations from the country where the product/service originated apply.
• Requires high trust from member states.
• Exceptions to allow host countries to deny mutual recognition.

Methods of Market Integration – Consequences

• Sovereignty: Who controls the rules?
• Institutional consequences: Who makes the rules?
• Welfare considerations: Which rules best protect people?
• Democratic concerns: How can rules be democratically decided?
• Specialization: Optimal resource allocation.
• Interdependence: Economies become reliant on one another.
• Common Institutions: Markets need rules, created institutionally.

What Happened in the EU?

• Goals to achieve economic interdependence and peace.
• "Common Market" began in 1957.
• Controlled introduction of markets, allowing for exceptions.
• Harmonization examples like the Chocolate Directive.
• Sector-specific and issue-based initiatives.
• Pace of integration slowed following initial rapid development..

Development of the Internal Market

• Original goal of economic interdependence to promote peace.
• "Common Market" implementation from 1957 onwards.
• Controlled market openings, with exceptions.
• Harmonized standards, like the Chocolate Directive.
• Issue-or sector-specific initiatives followed.
• Initial swift pace, but growth slowed over time.

Development of the Internal Market

• Courts expanded the Common Market's scope.
• Shift toward a home country model.
• Faced member state resistance.
• Late 1980s saw push for liberalization from some governments.

Development of the Internal Market – Single European Act

• 1987 legislation.
• Established an internal market without internal frontiers.
• Encouraged free movement of goods, persons, services, and capital.
• Qualified Majority Voting replaced unanimity.
• Simplified harmonization of single market legislation.

Development of the Internal Market

• No need for EU legislation when mutual recognition exists (similar to home country control).
• Exceptions continue to exist for member states.
• Harmonization mainly addresses cases where national rules prevail.

Development of the Internal Market – Advantages and Disadvantages

• Realistic, abandoned complete harmonization
• Workable, functional, and developing.
• Incomplete, national governments maintain control (though incomplete) - but also loss of control by national governments.

Eurozone

• Participating member states in a monetary union.
• Expanded since 1999, starting with 11 members.
• Common monetary policy.

What is a Market? What are Consumers?

• Internal market meaning and definition
• Available regulatory powers
• Impact on consumers.
• EU internal market, and defining its parts.

What is a Market – Article 26 TFEU (and subsequent)

• The Union adopting measures to establish the internal market.
• The internal market is without internal borders, promoting free movement (of goods, etc.).
• Directives/guidelines determined by the Council on proposals form the Commission to ensure progress across all sectors.

What is a Market

• Power to regulate the internal market
• Harmonization and types of instrument
• Comprehensive powers, but with exceptions related to fiscal provisions or workers' rights.

What is a Market – Tobacco Advertising

• Specific regulations for tobacco advertising, linked to improving functioning of internal market and minimizing distortions of trade.

What are Consumers?

• Article 169 of the Treaty to promote consumer interests
• High levels of consumer protection needed.
• Protecting health, safety, economic interests, promoting information and rights to organize.

What are Consumers?

• Natural friction between market freedom and consumer protection.
• Conflicts with national consumer rules.
• Examples like the Beer Purity Law.

What are Consumers?

• 'Market Citizens'
• Market values prioritized.
• Number of cases where market freedoms clashed with social values.

Conclusion

• Multiple stages of market integration.
• The EU as a real, complex example.
• Internal market defined by Articles 26 & 114 of the Treaty.

Workshop

• Read the Tobacco Advertising document carefully.