Free Movement of Capital - TFEU Articles 30 & 110

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Questions and Answers

What is a requirement for authorisation schemes according to Article 10?

They must be non-discriminatory. (correct)

They must be justified by an overriding reason relating to private interests.

They must have at least two restrictive measures available.

They must provide unlimited access to all service activities.

What significant concept was introduced by the Treaty of Maastricht in 1992?

EU Citizenship (correct)

Single European market

Free movement of goods

Common agricultural policy

Which of the following is one of the prohibited requirements listed in Article 14?

Regulations solely favoring local businesses.

Mandatory use of digital tools.

Unjustified restrictions on service providers. (correct)

Exclusivity clauses in contracts.

Which case established that EU citizenship is a fundamental status of nationals of Member States?

Grzelczyk Signup and view all the answers

In the context of freedom of movement, what must nationals of an EU Member State be engaged in?

Economic activity Signup and view all the answers

What do the case-by-case derogations pertain to according to Article 18?

They assess situations individually for exemptions. Signup and view all the answers

What does the Ruiz Zambrano case highlight regarding parental deportation?

Parents cannot be deported if it affects EU citizen children. Signup and view all the answers

Which requirement is NOT part of the services provisions?

Enable monopoly control over service activities. Signup and view all the answers

Which of the following principles are included in determining if a national restriction is in breach of EU law?

Justification for the restriction Signup and view all the answers

What does the Rottmann case imply about the removal of citizenship?

It must be proportional to be compliant with EU law. Signup and view all the answers

What is required for workers to benefit from free movement laws according to the Jundt case?

Low threshold for economic activity Signup and view all the answers

How does EU citizenship relate to national citizenship according to the Grzelczyk case?

EU citizenship is a separate, superior status. Signup and view all the answers

What does Article 30 TFEU primarily prohibit between Member States?

Customs duties on imports and charges having equivalent effect Signup and view all the answers

Which statement correctly describes permissible charges under Article 30 TFEU?

Charges should be proportional to the costs of services provided. Signup and view all the answers

What type of discrimination does Article 110(1) TFEU explicitly prohibit?

Discriminatory taxation between similar products Signup and view all the answers

In regards to taxation on products, what does the substitutability test assess?

How tax differential affects sales of similar products Signup and view all the answers

What justifies indirect discrimination under Article 110 TFEU?

Clear policy reasons behind the tax Signup and view all the answers

What is the primary concern of Article 110(2) TFEU?

Differential taxation on competing products Signup and view all the answers

Which of the following aspects is NOT considered in the legitimacy and proportionality test?

Comparison of similar products Signup and view all the answers

Which entity imposes permissible charges mentioned in Article 30 TFEU?

The Union as a governing body Signup and view all the answers

What is the status of a 'posted worker' under EU law?

An employee sent to provide services temporarily in another Member State Signup and view all the answers

Which document is not required for a Union citizen to reside in another Member State for up to 3 months?

Proof of employment Signup and view all the answers

Under what condition can a non-economically active migrant access social benefits in Germany?

By being economically active Signup and view all the answers

Which category of rights do EU citizens NOT possess according to the provided information?

Access to all social benefits unconditionally Signup and view all the answers

What is necessary for a non-economically active Union citizen after five years of residence?

Acquisition of permanent residency Signup and view all the answers

Who qualifies as a family member under Article 2 CRD?

Dependent ascendants over 21 Signup and view all the answers

What must a student possess in order to reside in another Member State as part of EU law?

Both financial resources and comprehensive sickness insurance Signup and view all the answers

What right is granted to workers according to Article 21 TFEU?

The right to seek employment in another Member State Signup and view all the answers

Under which provision can family members of EU citizens acquire residence rights?

Directive 2004/38/EC Signup and view all the answers

Which statement is true regarding economically active citizens under EU law?

Their rights are more extensive than non-economically active citizens. Signup and view all the answers

What does Article 34 TFEU prohibit?

Quantitative restrictions on imports and equivalent measures Signup and view all the answers

Which of the following describes distinctly applicable measures?

Do not apply equally and can have different impacts Signup and view all the answers

What is the Keck test used for?

To check if a measure has equivalent effect under Article 34 Signup and view all the answers

Which of the following justifications is not included under Article 36 TFEU?

Promotion of domestic trade Signup and view all the answers

In which case was it determined that a ban on advertising targeted at children disproportionately affects non-domestic sellers?

De Agostini Signup and view all the answers

What is the mutual recognition concept in trade law?

A good approved in one Member State can be marketed in others Signup and view all the answers

Which of the following is NOT a mandatory requirement under the Cassis de Dijon principle?

Ensuring maximum profit for local businesses Signup and view all the answers

Which type of selling arrangement affects imports differently in law or in fact?

Permanent advertising restrictions Signup and view all the answers

Under what condition can a rule be permitted according to the rule of reason?

Is indistinctly applicable and justified by a mandatory requirement Signup and view all the answers

Which case addressed the issue of where to ride jetskis and its implications on trade?

Mickelsson and Roos Signup and view all the answers

Study Notes

Free Movement of Capital - Article 30 TFEU

Article 30 TFEU prohibits customs duties on imports and exports, along with charges having equivalent effect (CEE) between Member States.
CEE is any financial charge imposed unilaterally on domestic and foreign goods with a cross-border element, regardless of its size or name.
Charges are permissible if they are applied equally to local and foreign goods, constitute payment for a service proportionate to the costs, and are imposed by the Union.

Free Movement of Capital - Article 110 TFEU

Article 110(1) prohibits discriminatory internal taxation between similar products from different Member States.
- This includes direct discrimination which is strictly prohibited and indirect discrimination which can be justified for policy reasons.
Article 110(2) prohibits differential taxation on competing products.
- The substitutability of the products, the impact of the tax differential on sales, and the presence of a protective effect are considered in determining competition.
Justifications under Article 110 are assessed through a legitimacy and proportionality test, considering whether there is a restriction of a freedom, a legitimate reason for the restriction, and whether the restriction is proportionate.

Free Movement of Goods – Article 34 and 35 TFEU

Articles 34 and 35 TFEU prohibit quantitative restrictions on imports and exports, as well as measures having equivalent effect (MEEs) between Member States.
MEEs are any trading rules enacted by Member States that hinder intra-EU trade, directly or indirectly, actually or potentially.
Types of MEEs:
- Product-bound: fall under Article 34.
- Selling arrangements: fall under Article 34 if they affect imports differently in law or in fact.
  - Examples: bans on advertising directed at children, restrictions on alcohol advertising, rules about when, where, or who sells goods.
- Product use rules: rules about how a product may be used can fall under Article 34.
  - Examples: restrictions on towing trailers and motorcycles, restrictions on where to ride jet skis.
Keck Test: A test to determine whether a measure is an MEE by considering whether it applies equally to all relevant traders within the national territory and affects national and foreign products in the same way, in law and in fact.
Distinctly applicable measures: do not apply equally to foreign and domestic goods, can be justified by Article 36.
Indistinctly applicable measures: apply equally to all goods, can be justified by Article 36 and "mandatory requirements" established by the Cassis de Dijon case.

Free Movement of Goods - Justifications

Article 36 TFEU allows exceptions for public morality, public policy, public security, protection of health and life, protection of national treasures, and protection of industrial and commercial property.
Mandatory requirements established by the Cassis de Dijon case include: public health, consumer protection, commercial fairness, and fiscal supervision effectiveness.
The mutual recognition concept states that a good allowed in one Member State should be allowed in all.
Rule of Reason: a rule can be permitted if there is no full harmonization, it is indistinctly applicable, it is justified by a mandatory requirement, and it is proportional.

Free Movement of Workers and Citizens

The Treaty of Maastricht (1992) introduced EU citizenship for anyone who is a national of a Member State.
Grzelczyk (2001) established EU citizenship as a fundamental status, separate and superior to the previous worker's status.
Rottmann: while Member States grant citizenship, EU law dictates how it can be removed and must be done proportionally.
EU Law applies when an EU national moves to another Member State, particularly when engaged in economic activity.
Ruiz Zambrano: deportation of EU citizens' parents from the EU was impermissible, as it would deprive EU citizens of their rights.
Economic activity: required for free movement of workers (including establishment and services), although a low threshold is generally accepted.
Baumbast: economic activity may not be required when EU citizenship is engaged.

Rights of Migrants

Article 21 TFEU: EU citizens have the right to move and reside in any Member State.
Workers: covered by EU law, encompassing individuals working under the direction of another for remuneration, including part-time workers, job seekers, and those who retain worker status post-employment.
Posted Workers: covered by Directive 96/71/EC and related legislation, including employees temporarily transferred for work by their employer.
Up to 3 months of residence: no conditions apply under Article 6 CRD, requiring a valid ID card or passport, and allowing accompanying family members.
Beyond 3 months: requires residence under Article 7 CRD, based on sufficient resources, comprehensive sickness insurance, or enrollment in study.
Dano case: established that lawful residence is a precondition for access to social welfare for non-economically active EU citizens.
Permanent Residence: can be acquired after 5 years of legal residence under Article 16 CRD.
Family Members: defined under Article 2 CRD and include spouses, registered partners, direct descendants under 21, certain ascendants, and the spouse's dependents.
- Coman case: established a right of residence for same-sex couples married in a Member State, even when such marriages are not recognized in the host Member State.
Equal Treatment: applies to access to employment, education, and social benefits.
Posted Workers: covered by specific legislation and are subject to rules concerning labor conditions and rights.

Free Movement of Services - Establishment

Establishment provisions cover authorization schemes and other requirements for providing services.
Authorization schemes must be non-discriminatory, justified by legitimate public interest reasons, and use the least restrictive means necessary.
Certain requirements related to establishment are prohibited (Article 14), while others are considered suspect (Article 15).

Free Movement of Services - Services

Services provisions include requirements for respecting providers' rights and ensuring free access to service activities.
Several requirements are suspect, with specific derogations listed in Articles 17 and 18.

Company Law

Companies are generally established under national law, with legislation covering disclosure requirements, capital maintenance, mergers, takeovers, shareholders' rights, and use of digital tools.

Recognition of Professional Training

Directive 2005/36 and subsequent legislation seeks to facilitate professional practice in another Member State.
Directive 2013/55 introduced the European Professional Card and Common Training Frameworks.

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Description

This quiz explores the regulations outlined in Articles 30 and 110 of the Treaty on the Functioning of the European Union (TFEU) regarding the free movement of capital. It covers the prohibition of customs duties and discriminatory taxation practices among Member States, ensuring equal treatment between domestic and foreign goods. Test your knowledge on these key legal provisions!