european union law - cambridge university press

European Union Law

The European Union has existed for over half a century. Having started as the‘Europe of the Six’ in a very specific industrial sector, the Union today has28Member States and acts within almost all areas of social life. European law hascome to influence almost all fields of national law, including administrative law,constitutional law, contract law, criminal law and even tort law; and it has alsoplayed a major role in the development of competition law, environmental lawand employment law.

What is the European Union? How does it work, and how does it produceEuropean law? Written with exceptional clarity, European Union Law offers aclassic textbook for students and practitioners of European law alike. Using aclear framework, it guides readers through all the core constitutional andsubstantive topics of EU law, and provides an overview of the most importantinternal and external policy areas of the European Union. Extracts from classiccase law are complemented with extensive and critical discussion of the theor-etical and practical aspects of the European Union and its law. Chapters areenriched with more than one hundred colour figures and tables, which clarifycomplex topics and illustrate relationships and processes. Suggestions for furtherreading direct students to significant pieces of academic literature for deeperself-study, and a companion website with full ‘Lisbonised’ versions of the casescited in the text completes the learning package.

Robert Schütze is Professor of European Law at Durham University andVisiting Professor at LUISS – Università Guido Carli.

www.cambridge.org© in this web service Cambridge University Press

Cambridge University Press978-1-107-07120-9 - European Union LawRobert SchützeFrontmatterMore information

http://www.cambridge.org/9781107071209

http://www.cambridge.org


European Union Law

ROBERT SCHÜTZE






University Printing House, Cambridge CB2 8BS, United Kingdom

Cambridge University Press is part of the University of Cambridge.

It furthers the University’s mission by disseminating knowledge in the pursuit ofeducation, learning and research at the highest international levels of excellence.

www.cambridge.orgInformation on this title: www.cambridge.org/9781107416536

© Robert Schütze 2015

This publication is in copyright. Subject to statutory exceptionand to the provisions of relevant collective licensing agreements,no reproduction of any part may take place without the writtenpermission of Cambridge University Press.

First published 2015

Printed in the United Kingdom by Bell and Bain Ltd

A catalogue record for this publication is available from the British Library

Library of Congress Cataloguing in Publication dataSchütze, Robert. author.European Union law / Robert Schütze.pages cm

ISBN 978-1-107-07120-9 (hardback)1. Law – European Union countries. I. Title.KJE947.S383 2015341.242′2–dc23 2014048001

ISBN 978-1-107-07120-9 HardbackISBN 978-1-107-41653-6 Paperback

Cambridge University Press has no responsibility for the persistence or accuracy ofURLs for external or third-party internet websites referred to in this publication,and does not guarantee that any content on such websites is, or will remain,accurate or appropriate.






For my Students – Past and Present






Summary Contents

Part I Constitutional Foundations 11 Constitutional History: From Paris to Lisbon 32 Constitutional Nature: A Federation of States 433 European Law I: Nature – Direct Effect 774 European Law II: Nature – Supremacy/Pre-emption 1175 Governmental Structure: Union Institutions I 1476 Governmental Structure: Union Institutions II 185

Part II Governmental Powers 2217 Legislative Powers: Competences and Procedures 2238 External Powers: Competences and Procedures 2639 Executive Powers: Competences and Procedures 30210 Judicial Powers I: (Centralised) European Procedures 34311 Judicial Powers II: (Decentralised) National Procedures 39412 Judicial Powers III: EU Fundamental Rights 429

Part III Substantive LawA Internal Market 471

13 Free Movement of Goods I: Negative Integration 47314 Free Movement of Goods II: Positive Integration 52715 Free Movement of Persons: Workers and Beyond 57216 Free Movement of Services and Capital 631

B Union Policies 68317 Competition Law I: Private Undertakings 68518 Competition Law II: State Interferences 74919 Internal Policies: An Overview 79720 External Policies: An Overview 859

Appendices 9211. How to Find the EU Treaties 9232. How to Find (and Read) EU Secondary Law 9263. How to Find (and Read) EU Court Judgments 9294. How to Find EU Academic Resources 933






Detailed Contents

List of Illustrations xxivList of Tables xxviList of Cases xxviiiList of Secondary Law lxxxviiTable of Equivalents cvList of Abbreviations cxiPreface cxvAcknowledgements cxvii

Part I Constitutional Foundations 1

1 Constitutional History: From Paris to Lisbon 3Introduction 31. From Paris to Rome: The European Coal and Steel

Community 7a. The (Supranational) Structure of the ECSC 8b. The (Failed) European Defence Community 10

2. From Rome to Maastricht: The European (Economic)Community 12a. Normative Supranationalism: The Nature of European Law 13b. Decisional Supranationalism: The Governmental Structure 14c. Intergovernmental Developments outside the EEC 18d. Supranational and Intergovernmental Reforms through the

Single European Act 203. From Maastricht to Nice: The (Old) European Union 22

a. The Temple Structure: The Three Pillars of the (Maastricht)Union 23aa. The First Pillar: The European Communities 24bb. The Second Pillar: Common Foreign and Security

Policy 26cc. The Third Pillar: Justice and Home Affairs 27

b. A Decade of ‘Constitutional Bricolage’: Amsterdamand Nice 27aa. The Amsterdam Treaty: Dividing the Third Pillar 28bb. The Nice Treaty: Limited Institutional Reform 30

4. From Nice to Lisbon: The (New) European Union 32a. The (Failed) Constitutional Treaty: Formal ‘Total

Revision’ 33b. The Lisbon Treaty: Substantive ‘Total Revision’ 36






Conclusion 39Further Reading 41

2 Constitutional Nature: A Federation of States 43Introduction 431. The American Tradition: Federalism as (Inter)national Law 45

a. Madisonian Federalism: Three Dimensions 45b. The ‘Mixed Constitution’ and the Sovereignty Question 48

2. The European Tradition: International versus National Law 50a. Conceptual Polarisation: ‘Confederation’ versus ‘Federation’ 50b. Early Criticism: The European Tradition and the (Missing)

Federal Genus 533. The European Union in Light of the American Tradition 56

a. Foundational Dimension: Europe’s ‘ConstitutionalTreaties’ 56

b. Institutional Dimension: A European Union of Statesand People(s) 59

c. Functional Dimension: The Division of Powers inEurope 61

d. Overall Classification: The European Union on Federal‘Middle Ground’ 62

4. The European Union in Light of the European Tradition 62a. The Sui Generis ‘Theory’: The ‘Incomparable’ European

Union 63b. The International Law Theory: The ‘Maastricht Decision’ 65c. Europe’s Statist Tradition Unearthed: Three Constitutional

Denials 67d. Excursus: Europe’s ‘Democratic Deficit’ as a ‘False Problem’? 71


3 European Law I: Nature – Direct Effect 77Introduction 771. Primary Union Law: The Effect of the Treaties 82

a. Direct Effect: From Strict to Lenient Test 84b. The Dimensions of Direct Effect: Vertical and Horizontal Direct

Effect 872. Direct Union Law: Regulations and Decisions 89

a. Regulations: The ‘Legislative’ Instrument 89aa. General Application in All Member States 90bb. Direct Application and Direct Effect 91

b. Decisions: The Executive Instrument 93aa. Specifically Addressed Decisions 93bb. Non-addressed Decisions 95

x Detailed Contents






3. Indirect Union Law: Directives 95a. Direct Effect and Directives: Conditions and Limits 96

aa. The No-horizontal-direct-effect Rule 98bb. The Limitation to the Rule: The Wide Definition of State

(Actions) 100cc. The Exception to the Rule: Incidental Horizontal Direct

Effect 101b. Indirect Effects through National and (Primary) European Law 103

aa. The Doctrine of Consistent Interpretation of National Law 103bb. Indirect Effects through the Medium of European

Law 1054. External Union Law: International Agreements 109

a. The Conditions of Direct Effect 110b. The Dimensions of Direct Effect 112


4 European Law II: Nature – Supremacy/Pre-emption 117Introduction 1171. The European Perspective: Absolute Supremacy 118

a. The Absolute Scope of the Supremacy Principle 120aa. Supremacy over Internal Laws of the Member States 120bb. Supremacy over International Treaties

of the Member States 122b. The ‘Executive’ Nature of Supremacy: Disapplication, Not

Invalidation 1242. The National Perspective: Relative Supremacy 127

a. Fundamental Rights Limits: The ‘So-long’ Jurisprudence 129b. Competences Limits: From ‘Maastricht’ to ‘Mangold’ 131

3. Legislative Pre-emption: Nature and Effect 134a. Pre-emption Categories: The Relative Effects of Pre-emption 134

aa. Field Pre-emption 135bb. Obstacle Pre-emption 136cc. Rule Pre-emption 136

b. Modes of Pre-emption: Express and Implied Pre-emption 1374. Constitutional Limits to Legislative Pre-emption 139

a. Union Instruments and their Pre-emptive Capacity 139aa. The Pre-emptive Capacity of Regulations 139bb. The Pre-emptive Capacity of Directives 141cc. The Pre-emptive Capacity of International

Agreements 142b. Excursus: Competence Limits to Pre-emption 144


Detailed Contents xi






5 Governmental Structure: Union Institutions I 147Introduction 1471. The ‘Separation-of-Powers’ Principle and the European Union 1502. The European Parliament 154

a. Formation: Electing Parliament 155aa. Parliament’s Size and Composition 156bb. Members of the European Parliament and Political Parties 158

b. Internal Structure: Parliamentary Organs 160c. The Plenary: Decision-making and Voting 162d. Parliamentary Powers 164

aa. Legislative Powers 164bb. Budgetary Powers 165cc. Supervisory Powers 166dd. Elective Powers 167

3. The European Council 169a. The President of the European Council 170b. The European Council: Functions and Powers 172

4. The Council of Ministers 173a. The Council: Composition and Configuration 173b. Internal Structure and Organs 175

aa. The Presidency of the Council 175bb. ‘Coreper’ and Specialised Committees 176cc. Excursus: The High Representative of Foreign Affairs and

Security Policy 178c. Decision-making and Voting 179d. Functions and Powers 183

6 Governmental Structure: Union Institutions II 1851. The Commission 185

a. Composition and Structure 186aa. The President and ‘his’ College 187bb. The Commission’s Administrative Organs 190

b. Decision-making within the Commission 190c. Functions and Powers of the Commission 192d. Excursus: European Agencies and the Commission 195

aa. European Agencies: Functions 196bb. European Agencies: Structure 197

2. The Court of Justice of the European Union 198a. Judicial Architecture: The European Court System 198

aa. The Court of Justice: Composition and Structure 199bb. The General Court: Composition and Structure 201cc. Excursus: The Advocates General 202dd. The ‘Specialised Court(s)’: The Civil Service Tribunal 203

b. Judicial Procedure(s) 204

xii Detailed Contents






c. Judicial Reasoning: Methods of Interpretation 206d. Jurisdiction and Judicial Powers 207

3. The European Central Bank 209a. The Special Status of the ECB 209b. Organs and Administrative Structure 211c. Internal Divisions and Decision-making 213d. Functions and Powers 214

4. The Court of Auditors 216Conclusion 218Further Reading 219

Part II Governmental Powers 221

7 Legislative Powers: Competences and Procedures 223Introduction 2231. The Scope of Union Competences 224

a. Teleological Interpretation 225b. The General Competences of the Union 229

aa. The Harmonisation Competence: Article 114 229bb. The Residual Competence: Article 352 231

2. The Categories of Union Competences 235a. Exclusive Competences: Article 3 237b. Shared Competences: Article 4 238

aa. General Considerations 238bb. Minimum Standard Competences 240

c. Coordinating Competences: Article 5 241d. Complementary Competences: Article 6 242

3. Legislative Procedures: Ordinary and Special 243a. The ‘Ordinary’ Legislative Procedure 245

aa. Constitutional Text: Formal Procedure 245bb. Constitutional Practice: Informal Trilogues 249

b. The ‘Special’ Legislative Procedures 2514. The Principle of Subsidiarity 252

a. Procedural Standard: Subsidiarity as a Political Safeguard ofFederalism 253

b. Substantive Standard: Subsidiarity as a Judicial Safeguard ofFederalism 256


8 External Powers: Competences and Procedures 263Introduction 2631. The External Competences of the Union 265

a. The Common Foreign and Security Policy 267b. The Union’s Special External Powers 268

Detailed Contents xiii






c. The ‘Residual’ Treaty Power: From ERTA to Article 216 270aa. ERTA and the Doctrine of Implied Powers 270bb. Article 216: Codifying ERTA? 272

d. The Relationship between the CFSP and the Special Competences 2732. The Nature of External Competences 276

a. The Sui Generis Nature of the CFSP Competence 276b. Article 3(2): Subsequently Exclusive Treaty Powers 278

aa. Three Lines of Exclusivity: Codifying Constitutional Practice? 278bb. Subsequent Exclusivity: A Critical Analysis 279

3. External Decision-making Procedures 280a. The ‘Specificity’ of CFSP Decision-making Procedures 281

aa. Institutional Actors and Institutional Balance 281bb. Voting Arrangements in the Council 282

b. The Union’s (Ordinary) Treaty-making Procedure 283aa. Initiation and Negotiation 284bb. Signing and Conclusion 286cc. Modification, Suspension (and Termination) 288dd. Union Succession to Member State Agreements 289

4. Sharing External Power: Constitutional Safeguards ofFederalism 290a. Mixed Agreements: An International and Political Safeguard 291b. The Duty of Cooperation: An Internal and Judicial Safeguard 293

aa. Member States as ‘Trustees of the Union’ 295bb. ‘Reversed’ Subsidiarity: Restrictions on the Exercise of

Shared State Power 296Conclusion 298Further Reading 300

9 Executive Powers: Competences and Procedures 302Introduction 3021. Governmental Powers: The Union’s Dual Executive 304

a. The Legal Instruments of Political Leadership 305b. The Informal Procedure(s) of Government 307

2. Law-making Powers: Delegated and Implementing Acts 309a. The Delegation of ‘Legislative’ Power: Article 290 311

aa. Judicial Safeguards: Constitutional Limits to Delegated Acts 313bb. Political Safeguards: Control Rights of the Union Legislator 315

b. The ‘Conferral’ of Executive Power: Article 291 318aa. The Scope of Article 291 318bb. Constitutional Safeguards for Implementing Legislation 321

c. Excursus: Delegating ‘Implementing’ Power to Agencies 3243. Administrative Powers I: Centralised Enforcement 327

a. The Scope of the Union’s Administrative Powers 328b. Administrative Powers and the Subsidiarity Principle 331

xiv Detailed Contents






4. Administrative Powers II: Decentralised Enforcement 334a. The Effects of National Administrative Acts 335b. National Administrative Autonomy (and its Limits) 336


10 Judicial Powers I: (Centralised) European Procedures 343Introduction 3431. Annulment Powers: Judicial Review 347

a. The Existence of a ‘Reviewable’ Act 349b. Legitimate Grounds for Review 350

aa. ‘Formal’ and ‘Substantive’ Grounds 351bb. In Particular: The Proportionality Principle 352

c. Legal Standing before the European Court 354aa. The Rome Formulation and its Judicial Interpretation 355bb. The Lisbon Formulation and its Interpretative Problems 359

d. The Indirect Review of European Law 363aa. Collateral Review: The Plea of Illegality 363bb. Indirect Review through Preliminary Rulings 364

2. Remedial Powers: Liability Actions 365a. Procedural Conditions: From Dependent to Independent Action 366b. Substantive Conditions: From Schöppenstedt to Bergaderm 368

3. Adjudicatory Powers I: Enforcement Actions 370a. Enforcement Actions against Member States 371

aa. The Procedural Conditions under Article 258 371bb. Judicial Enforcement through Financial Sanctions 373

b. Enforcement Actions against the Union: Failure to Act 3754. Adjudicatory Powers II: Preliminary Rulings 377

a. Paragraph 1: The Jurisdiction of the European Court 378b. Paragraph 2: The Conditions for a Preliminary Ruling 380

aa. ‘Who’: National Courts and Tribunals 380bb. ‘What’: Necessary Questions 382

c. Paragraph 3: The Obligation to Refer and ‘Acte Clair’ 385d. The Legal Nature of Preliminary Rulings 388


11 Judicial Powers II: (Decentralised) National Procedures 394Introduction 3941. The (Consistent) Interpretation Principle 3992. The Equivalence Principle 401

a. Non-discrimination: Extending National Remedies to EuropeanActions 401

b. ‘Similar’ Actions: The Equivalence Test 402

Detailed Contents xv






3. The Effectiveness Principle 404a. The Historical Evolution of the Effectiveness Standard 404

aa. First Period: Judicial Restraint 405bb. Second Period: Judicial Intervention 406cc. Third Period: Judicial Balance 408

b. Procedural Limits to the Invocability of European Law 4104. The Liability Principle 413

a. State Liability: The Francovich Doctrine 414aa. The Three Conditions for State Liability 417bb. State Liability for Judicial Breaches of European Law 420

b. Private Liability: The Courage Doctrine 422Conclusion 425Further Reading 426

12 Judicial Powers III: EU Fundamental Rights 429Introduction 4301. The ‘Unwritten’ Bill of Rights: Human Rights as ‘General

Principles’ 431a. The Birth of EU Fundamental Rights 432

aa. The European Standard – An ‘Autonomous’ Standard 434bb. Limitations, and ‘Limitations on Limitations’ 437

b. United Nations Law: External Limits to European HumanRights? 439

2. The ‘Written’ Bill of Rights: The Charter of FundamentalRights 442a. The Charter: Structure and Content 443

aa. (Hard) Rights and (Soft) Principles 444bb. Limitations, and ‘Limitations on Limitations’ 446

b. Relations with the European Treaties (and the EuropeanConvention) 448

3. The ‘External’ Bill of Rights: The European Convention onHuman Rights 450a. The Convention Standard for Union Acts 452

aa. Before Accession: (Limited) Indirect Review of Union Acts 452bb. After Accession: (Full) Direct Review of Union Acts 454

b. Union Accession to the European Convention: ConstitutionalPreconditions 455

4. The ‘Incorporation Doctrine’: EU Fundamental Rights andNational Law 457a. Incorporation and General Principles: Implementation and

Derogation 457b. Incorporation and the Charter of Fundamental Rights 460

aa. General Rules for All Member States 460bb. Special Rules for Poland and the United Kingdom 464

xvi Detailed Contents






c. Incorporation and the European Convention on Human Rights? 466d. Excursus: Incorporation and Individuals – Human Rights and

Private Actions 467Conclusion 468Further Reading 469

Part III Substantive Law

A Internal Market 471

13 Free Movement of Goods I: Negative Integration 473Introduction 4741. Negative Integration: Jurisdictional Questions 475

a. ‘Personal’ Scope: ‘State Measures’ and ‘Private Party Actions’ 477b. Material Scope: Discrimination and Restriction Tests 480c. Constitutional Limits I: De Minimis and Remoteness 483d. Constitutional Limits II: Purely Internal Situations 484

2. Fiscal Barriers: Customs Duties and Discriminatory Taxation 486a. Fiscal Barriers I: Customs Duties and Equivalent Charges 486

aa. Article 30: An Absolute Prohibition 487bb. Objective ‘Justifications’ 490

b. Fiscal Barriers II: Discriminatory Taxation 492aa. Paragraph 1: Discrimination against ‘Similar’ Foreign

Goods 494bb. Paragraph 2: Protection against ‘Competing’ Foreign Goods 496

3. Regulatory Barriers I: Prohibitions 499a. Quantitative Restrictions on Imports: Article 34 499

aa. First Period: Dassonville and ‘Trading Rules’ 500bb. Second Period: Cassis and ‘Product Requirements’ 502cc. Third Period: Keck and ‘Selling Arrangements’ 504dd. Fourth Period: Italian Trailers and ‘Consumer

Restrictions’ 506b. Quantitative Restrictions on Exports: Article 35 508

4. Regulatory Barriers II: Justifications 510a. General Aspects I: Grounds of Justification 510b. General Aspects II: Proportionality of National Standards 514c. In Particular: Consumer Protection and ‘European’ Standards 516d. In Particular: Intellectual Property Justifications 518

aa. (Il)legitimate ‘Exercises’: The ‘Specific Subject Matter’Doctrine 519

bb. The Exhaustion of Rights Doctrine 520cc. Trade Marks and the Question of Consumer Confusion 522


Detailed Contents xvii






14 Free Movement of Goods II: Positive Integration 527Introduction 5271. Harmonisation Competences I: General Competences 529

a. The Concept of ‘Approximation’ or ‘Harmonisation’ 531b. The ‘Establishment’ or ‘Functioning’ of the Internal Market 534c. Relationship to Other Competences: Article 114(2) and Beyond 538d. ‘Opting Up’: The Derogations in Article 114(4) and (5) 540

2. Harmonisation Competences II: ‘Special’ Competences 543a. Tax Harmonisation: In Particular, Article 113 543b. Intellectual Property Harmonisation: In Particular, Article 118 546

3. Harmonisation Methods: ‘Old’ and ‘New’ Approaches 548a. Harmonisation Methods and Pre-emption Types 550b. Harmonisation under the ‘Old Approach’ 552c. Harmonisation under the ‘New Approach’ 556

aa. Cassis de Dijon and the ‘New Strategy’ 556bb. The ‘New Approach’ and Horizontal Legislation 558

4. In Particular: The Common Agricultural Policy 561a. The ‘Old’ CAP: Vertical Harmonisation 563

aa. Product Support through Common Prices 563bb. Legislative Pre-emption through ‘Common Market

Organisations’ 565b. The ‘New’ CAP: Towards Horizontal Harmonisation 567


15 Free Movement of Persons: Workers and Beyond 572Introduction 5731. Free Movement of Workers 575

a. Personal Scope I: ‘Workers’ and Quasi-workers 577aa. Employment: A Minimalist Definition 577bb. Beyond Employment: Former Workers

and Job-seekers 579b. Personal Scope II: Family Members 581c. Material Scope: Discrimination and Beyond 583d. Positive Integration: National Social Security Systems 586

aa. National Coordination: Regulation 883/2004 588bb. In Particular: The ‘Single Legislation’ Principle 590

2. Establishment I: Natural Persons 591a. Negative Integration under Article 49 592

aa. Personal Scope: Self-employed Persons 592bb. Material Scope: Discrimination and Beyond 593

b. Positive Integration: Mutual Recognition of ProfessionalQualifications 596

xviii Detailed Contents






3. Horizontal Rules: Citizenship and General Justifications 598a. European Citizenship: A Third Source of Movement Rights 599b. Citizenship Directive: Substantive Content 602

aa. Residency Rights for Union Citizens (and their Families) 602bb. Beyond Residency: Equal Treatment 604

c. Horizontal Limitations: Public Policy Justifications 605d. In Particular: The Public Service Exception 607

4. Establishment II: Companies 610a. Personal Scope: The Definition of ‘Companies’ 611

aa. Home State Restrictions and Daily Mail 613bb. Host State Restrictions and Centros 614

b. Material Scope: Primary and Secondary Establishment 616aa. Primary Establishment: A Discrimination Test? 617bb. Secondary Establishment: A Restriction Test 619

c. ‘Letter-box Companies’: The Doctrine of ‘Abuse of Rights’ 620d. Positive Integration: Article 50(2)(g) and Beyond 624

aa. Harmonisation: Company Law Directives 624bb. In Particular: European Corporate Forms 626


16 Free Movement of Services and Capital 631Introduction 6311. Services I: General Regime 633

a. Negative Integration: The Prohibition in Article 56 634aa. Personal Scope I: Beneficiaries and Addressees 634bb. Personal Scope II: The Concept of ‘Services’ 636cc. Material Scope: Discrimination and Beyond 640

b. Positive Integration: The Services Directive 6422. Services II: Special Regimes 646

a. Service Providers and Posted Workers 646b. Service Recipients and ‘Public’ Services 650

3. Capital I: Scope and Nature 654a. The Direct Effect of Article 63 656b. The (Elusive) Concept of ‘Capital’ 659c. Capital Restrictions: Discrimination and Beyond 661

aa. Non-discriminatory Capital Restrictions 661bb. Direct Taxation: A Discrimination Test? 664

d. External Limits: Capital and the Other Freedoms 666aa. Relationship to the Freedom of Establishment 667bb. Relationship to the Free Movement of Services 669

4. Capital II: Justifications (and Derogations) 670a. Express Justifications I: Tax Discriminations under

Article 65(1)(a) 671

Detailed Contents xix






b. Express Justifications II: Article 65(1)(b) 673c. Implied Justifications: Imperative Requirements 675d. Special Derogations for Third-country Restrictions 676

aa. Special Grounds of Justification 677bb. Special Standard(s) of Justification 678


B Union Policies 683

17 Competition Law I: Private Undertakings 685Introduction 6861. Cartels I: Jurisdictional Aspects 688

a. The Concept of ‘Undertaking’ 689b. The ‘Single Economic Unit’ Doctrine 691c. Forms of Collusion: Agreements and Beyond 693

aa. Agreements I: Horizontal and Vertical Agreements 693bb. Agreements II: ‘Tacit Acquiescence’ versus ‘Unilateral

Conduct’ 695cc. Concerted Practices and Parallel Conduct 697

d. (Potential) Effect on Trade between Member States 6992. Cartels II: Substantive Aspects 701

a. Restrictions of Competition: Anti-competitive Object or Effect 701aa. Two Dimensions: Inter-brand and Intra-brand Competition 702bb. Restrictions by Object: European ‘Per Se Rules’ 703cc. Restrictions by Effect: A European ‘Rule of Reason’? 705dd. Non-appreciable Restrictions: The De Minimis Rule 707

b. Article 101(3): Exemptions through Pro-competitive Effects 708aa. Direct Exemptions under Article 101(3) 709bb. Exemptions by Category: Block Exemption Regulations 710

c. In Particular: (Horizontal) Cooperation Agreements 713d. In Particular: (Vertical) Distribution Agreements 714

aa. Exclusive and Selective Distribution Agreements 714bb. ‘Vertical’ Block Exemption Regulation 716

3. Dominant Undertaking(s): Market Abuse 717a. The ‘Market’: Product and Geographic Dimensions 718b. Market Dominance 720

aa. General Considerations 720bb. Collective Dominance 722

c. Abuse of Market Dominance 724aa. Article 102[2](a) and ‘Predatory Pricing’ 726bb. Article 102[2](b) and ‘Refusal to Supply’ 727cc. Article 102[2](c) and ‘Discretionary Pricing’ 729dd. Article 102[2](d) and ‘Tying or Bundling’ 730

xx Detailed Contents






d. Objective Justification: Apparently Abusive Behaviour? 7324. EU Merger Control 734

a. Judicial Origins: Merger Control ‘by Other Means’ 735b. Legislative Foundations: The EU Merger Regulation 737

aa. Jurisdictional Scope: The ‘Union’ Dimension 738bb. Substantive Compatibility: Dominance and SIEC Tests 741cc. Merger Defences: Objective Justifications? 744dd. National Derogations: Public Policy Justifications 745


18 Competition Law II: State Interferences 749Introduction 7501. Public Undertakings and Public Services 751

a. Public Undertakings (and Undertakings with Special Rights) 752b. Services of General Economic Interest 755

aa. Public Service Definition(s): BUPA 757bb. Public Service Obstruction(s): Corbeau 758

2. State Aid I: Jurisdictional Aspects 760a. The Concept of ‘State Aid’ 761

aa. ‘State Aid’ and ‘State Resources’ – Alternative orCumulative Conditions? 763

bb. The (Wide) Concept of State Resources 765cc. Economic Advantage versus Economic Compensation 767

b. Selectivity of the Aid 770aa. Material Dimension: Selectivity as ‘Special’ Favours 770bb. Geographic Dimension: National or Regional Frame? 772

3. State Aid II: Substantive Aspects 774a. Automatic Justifications: Article 107(2) 774b. Discretionary Justifications: Article 107(3) 776c. In Particular: Regional Aid 778

4. Enforcing EU Competition Law 781a. Enforcement through the States: Articles 101 and 102 782

aa. Public Enforcement: FromCentralised to Decentralised System 782bb. Private Enforcement: The Role of the (National) Courts 787

b. Enforcement against the States: State Aid 788aa. ‘New Aid’: Powers of the Commission 790bb. ‘Unlawful Aid’: Powers of the Commission (and National

Courts) 792Conclusion 794Further Reading 795

19 Internal Policies: An Overview 797Introduction 7981. Economic and Monetary Policy 799

Detailed Contents xxi






a. Economic Policy: Coordinating the Member States 802aa. The Stability and Growth Pact and Beyond 802bb. Financial Assistance: Prohibitions and Permissions 805

b. Euro-membership: Differential Integration 807c. Monetary Policy: Price Stability 810d. Supervisory Function: Financial Stability 813

2. Social Policy 816a. Social Policy: Competence and Procedure 817

aa. Union Legislation: Article 153 – Scope and Nature 817bb. Private ‘Legislation’: Agreements between Social Partners 819

b. Employment Legislation I: Protection at Work 822aa. General Principles 822bb. Atypical Work 824

c. Employment Legislation II: Protection against Dismissal 826d. In Particular: The Equal Pay Principle 828

aa. Pay Discrimination: Direct and Indirect 830bb. Beyond Pay: Equal Treatment and Positive Action 832

3. Consumer Protection 833a. Forming Contracts: The Consumer Rights and Sales Directives 837b. Policing Contracts: The Unfair Terms Directive 839c. Policing Business: The Unfair Commercial Practices Directive 841d. Sanctioning Business: The Product Liability Directive 843

4. (Regional and) Cohesion Policy 846a. The European Regional Development Fund 849

aa. Objectives and Regions 849bb. Administrative Principles and Implementation 852

b. The Cohesion Fund 854Conclusion 856Further Reading 857

20 External Policies: An Overview 859Introduction 8601. Common Commercial Policy 861

a. The Union’s CCP Competence: Scope and Nature 863b. Decision-making and Treaty-making Procedure(s) 868c. Tariff and Trade Agreements: Multilateral and Bilateral 869

aa. The WTO Agreement: Structure and Content 869bb. Bilateral Trade Agreements of the Union 871

d. (Autonomous) Liberalisation and Protection Measures 8712. Development Cooperation 875

a. Development Policy: General Relations 876aa. (Indirect) Development Cooperation under the Common

Commercial Policy 876bb. From Trade to Aid: Direct Development Policy 879

xxii Detailed Contents






i. Constitutional Foundations: The DevelopmentCooperation Competence 879

ii. Legislative Foundations: The DevelopmentCooperation Instrument 882

b. Development Policy: Special Relations 883aa. Associating ACP Countries: From Lomé to Cotonou 885bb. The European Development Fund 887

3. Common Foreign and Security Policy 888a. CFSP: Constitutional Foundations 889

aa. Competence(s), Instruments, Procedures 889bb. Institutional Infrastructure 891

b. Union ‘Strategies’: Words for the World 894c. From Words to Actions I: CSDP ‘Missions’ 895d. From Words to Actions II: Restrictive Measures 898

aa. Restrictive Measures: Competence and Procedure 898bb. Counter-terrorism Measures and Judicial Review 900

4. Association and Accession 902a. ‘Constitutional’ Association: Overseas Countries and Territories 902b. ‘Contractual’ Association: Article 217 903

aa. Bilateral Association: The Customs Union with Turkey 904bb. EFTA Association: The European Economic Area 907

c. ‘Special’ Association(s): The European Neighbourhood Policy 910d. Accession: The Union’s Enlargement ‘Policy’ 913

aa. Pre-accession: Eligibility and Admissibility 914bb. Accession Agreements: Procedural and Substantive Aspects 916


Appendices 9211. How to Find the EU Treaties 9232. How to Find (and Read) EU Secondary Law 9263. How to Find (and Read) EU Court Judgments 9294. How to Find EU Academic Resources 933

Index 935

Detailed Contents xxiii






Illustrations

1.1 Historical Evolution of the Union 61.2 Pillar Structure of the ‘Old’ (Maastricht) Union 241.3 Dual Treaty Basis before and after Lisbon 362.1 Modes of States Integration 493.1 Monism and Dualism 783.2 Direct Effect 813.3 Direct Applicability, Direct Effect and Private Party Actions 893.4 Indirect Effect 1084.1 Pre-emption Types: Field, Obstacle, Rule Pre-emption 1355.1 Separation of Power Models 1515.2 Distribution of Seats in the European Parliament (Political Parties) 1615.3 European Council President: Donald Tusk 1715.4 Preparatory Committees to the Council 1786.1 European Commission President: Jean-Claude Juncker 1886.2 Internal Commission Structure 1916.3 Structure of the Court of Justice of the European Union 1996.4 ECJ Chambers 2016.5 Structure of the European Central Bank 2127.1 General and Special Competences 2347.2 Competence Types 2377.3 Structure of the Union Legislator 2457.4 Ordinary Legislative Procedure under Article 294 2477.5 Declining Democratic Representation 2507.6 Early Agreements through Trilogues 2518.1 Relationships among Union External Competences 2759.1 Unitary and Dual Executive 3059.2 Types of Executive Acts 3119.3 ‘Comitology’ as defined by Regulation 182/2011 3239.4 Federal Enforcement Models 32710.1 European Court: Powers (Flowchart) 34710.2 Plaumann Test 35810.3 Types of Acts under Article 263(4) 36110.4 Preliminary Rulings under Article 267 38311.1 Judicial Federalism in Comparative Perspective 39611.2 Limits on National Procedural Autonomy 39811.3 Standards of Effectiveness 40512.1 Inspiration Theory versus Incorporation Theory 43612.2 Principles and Rights within the Charter 445






12.3 Relationship between the Union’s Three ‘Bills of Rights’ 46913.1 Fiscal Barriers: Summary (Flowchart) 49813.2 Regulatory Barriers: Summary (Flowchart) 51114.1 Dual and Cooperative Federalism 54915.1 Free Movement of Persons: Summary (Flowchart) 57615.2 Citizenship Provisions - Coverage 60115.3 Justifications: Summary (Flowchart) 61017.1 Horizontal and Vertical Agreements 69417.2 Elements of Article 101 Summary (Flowchart) 71217.3 Forms of Joint Ventures 71317.4 Market Structures 72217.5 Scope of the 1989 Merger Regulation 74217.6 Merger Tests: Old and New 74318.1 Elements of Article 107 Summary (Flowchart) 76218.2 Polish Regional Aid Map 78118.3 European Competition Network 78519.1 Inflation Rate within the Eurozone 81219.2 Social Policy Competence – Nature(s) 81919.3 Structure of the UCP Directive 84319.4 Cohesion Policy: National Distribution 84819.5 Structural Funds – Eligibility 85119.6 Cohesion Policy: Implementation Pyramid 85319.7 Cohesion Fund: Eligibility 85520.1 CCP Competence – Scope and Nature 86720.2 CFSP – Institutional (Sub)Structure 89320.3 European Neighbourhood 911

List of Illustrations xxv






Tables

1.1 Structure of the TEU and TFEU 385.1 Treaty Provisions on the Institutions 1495.2 Union Institutions Correlating to Governmental Functions 1545.3 Distribution of Seats in the European Parliament

(Member States) 1575.4 Standing Committees of the European Parliament 1625.5 Council Configurations 1745.6 Weighted Votes System within the Council 1805.7 Member State Population Sizes 1826.1 Commission College: Portfolios 1896.2 (Selected) European Agencies and Decentralised Bodies 1967.1 Union Policies and Internal Actions 2268.1 Union External Policies 26710.1 Judicial Competences and Procedures 34612.1 Structure of the EU Charter 44413.1 Internal Market – Overview 47513.2 Free Movement of Goods – Details 47613.3 Market Models and Tests 48313.4 Justificatory Grounds 51314.1 Harmonisation Competences 52814.2 Harmonisation Measures (Selection) 53714.3 Corporate Tax Rates – National Differences 54514.4 Treaty Title on Agriculture 56214.5 Common Market Organisations 56415.1 Free Movement of Persons – Overview 57415.2 Regulation 883/2004 – Structure 58915.3 Directive 2005/36 – Structure 59715.4 Family Members and Other Beneficiaries 60415.5 EU Company Law Directives (Historical Selection) 62616.1 Internal Market – Overview 63316.2 Services Provisions – Overview 63516.3 Services Directive – Chapter IV 64416.4 Capital Provisions – Overview 65616.5 Capital Nomenclature 66016.6 Justification Grounds: General and Special 68017.1 Competition Rules – Overview 68817.2 Block Exemption Regulations (Selection) 71117.3 EU Merger Regulation – Structure 738






18.1 Competition Rules – Overview 75018.2 Formal and Informal State Aid Measures (Selection) 77818.3 Regulation 1/2003 – Structure 78719.1 Internal Policies – Overview 79819.2 Treaty Title on EMU – Overview 80119.3 Differential Integration within EMU 81019.4 Social Policy Provisions – Overview 81719.5 EU Collective Agreements (Selection) 82019.6 EU Consumer Measures (Selection) 83619.7 Cohesion Policy Provisions – Overview 84720.1 External Policies – Overview 86120.2 WTO Annexes 87020.3 EU Autonomous Measures 87220.4 DCI – Programmes and Budget 88320.5 EDF – Budget Allocation 88820.6 EU Missions – Selection 89720.7 Enlargement ‘Waves’ 91421.1 European Treaties – Chronology 92421.2 European Council Decisions Amending the Treaties 92521.3 Consolidated Versions of the European Treaties 92521.4 Main Academic Journals: General and Specific 93321.5 European Union Law: Specialised Textbooks 934

List of Tables xxvii






Table of Cases

Contents

1. Court of Justice of the European Union xxviii(a) European Court of Justice: Cases (numerical) xxviii(b) European Court of Justice: Cases (alphabetical) liv(c) European Court of Justice: Opinions (numerical) lxxxiii(d) General Court: Cases (numerical) lxxxiv

2. Other jurisdictions lxxxv(a) European Court of Human Rights: Cases (chronological) lxxxv(b) European Free Trade Association (EFTA): Cases (chronological) lxxxv(c) German Constitutional Court: Cases (chronological) lxxxv(d) United States Supreme Court: Cases (chronological) lxxxvi

1. Court of Justice of the European Union

(a) European Court of Justice: Cases (numerical)

8/55, Fédération Charbonnière de Belgique v High Authority of the ECSC, [1955]ECR (English Special Edition) 245 227, 352

9/56, Meroni & Co., Industrie Metallurgische, SpA v High Authority of theEuropean Coal and Steel Community, [1958] ECR 133 324–6

1/58, Stork & Cie v High Authority of the European Coal and Steel Community,[1958] ECR (English Special Edition) 17 432

20/59, Italy v High Authority, [1960] ECR 325 37130/59, De Gezamenlijke Steenkolenmijnen in Limburg v High Authority of the

European Coal and Steel Community, [1961] ECR 1, 235, 76536/59, 37/59, 38/59 and 40/59, Geitling Ruhrkohlen-Verkaufsgesellschaft mbH,

Mausegatt Ruhrkohlen-Verkaufsgesellschaft mbH and I. Nold KG v HighAuthority of the European Coal and Steel Community, [1959] ECR (EnglishSpecial Edition) 423 433

6/60, Humblet v Belgium, [1960] ECR (English Special Edition) 559 41410/61, Commission v Italy, [1962] ECR 1 12313/61, Kledingverkoopbedrijf de Geus en Uitdenbogerd v Bosch, [1962] ECR

45 782, 7872/62 and 3/62, Commission v Luxembourg and Belgium, [1962] ECR 425 48716/62 and 17/62, Confédération nationale des producteurs de fruits et légumes and

others v Council, [1962] ECR 471 90, 35525/62, Plaumann v Commission, [1963] ECR 95 357–8, 360–3, 366






26/62, Van Gend en Loos v Netherlands Inland Revenue Administration, [1963]ECR (English Special Edition) 1 79, 82–4, 87, 97, 203, 207, 394

28/62 to 30/62, Da Costa and others v Netherlands Inland Revenue Administration,[1963] ECR 31 379, 386–7

31/62 and 33/62, Lütticke and others v Commission, [1962] ECR 501 36675/63, Hoekstra (née Unger) v Bestuur der Bedrijfsvereniging voor Detailhandel en

Ambachten, [1964] ECR 177 379, 57790/63 and 91/63, Commission v Luxembourg and Belgium, [1964] ECR English

Special Edition 625 57, 3736/64, Costa v ENEL, [1964] ECR 614 14, 75, 120, 235, 379, 383, 385, 74656/64 and 58/64, Établissements Consten SàRL and Grundig-Verkaufs-GmbH v

Commission, [1966] ECR 299 519, 694, 699, 702, 703, 704, 71418/65 and 35/65, Gutmann v Commission, [1965] ECR 103 35256/65, Société Technique Minière v Maschinenbau Ulm, [1965] ECR 235 700,

702–3, 705, 707, 71457/65, Lütticke GmbH v Hauptzollamt Sarrelouis, [1966] ECR 205 493, 49427/67, Fink-Frucht GmbH v Hauptzollamt München-Landsbergerstrasse, [1967]

ECR 223 476, 49434/67, Firma Gebrüder Luck v Hauptzollamt Köln-Rheinau, [1968] ECR

245 125–66/68, Zuckerfabrik Watenstedt GmbH v Council, [1968] ECR 409 907/68, Commission v Italy (Art Treasures), [1968] ECR 423 487, 491, 51113/68, Salgoil v Italian Ministry of Foreign Trade, [1968] ECR 453 8624/68, Commission v Italy (Statistical Levy), [1969] ECR 193 483, 488, 4912/69, Sociaal Fonds voor de Diamantarbeiders v S.A. Ch. Brachfeld & Sons and

Chougol Diamond Co., [1969] ECR 211 488, 4915/69, Völk v Vervaecke, [1969] ECR 295 700, 7079/69, Sayag et al. v Leduc et al., [1969] ECR 329 36729/69, Stauder v City of Ulm, [1969] ECR 419 433, 43540/69, Hauptzollamt Hamburg Oberelbe v Bollmann, [1970] ECR 69 14041/69, ACF Chemiefarma v Commission, [1979] ECR 661 693, 70348/69, Imperial Chemical Industries v Commission, [1972] ECR 619 697, 70364/69, Compagnie Française commerciale et financière v Commission, [1970] ECR

221 9074/69, Hauptzollamt Bremen-Freihafen v Waren-Import-Gesellschaft Krohn &

Co., [1970] ECR 451 3379/70, Grad v Finanzamt Traunstein, [1970] ECR 825 9411/70, Internationale Handelsgesellschaft mbH v Einfuhr- und Vorratsstelle für

Getreide und Futtermittel, [1979] ECR 1125 57, 121, 129–30, 43315/70, Chevallery v Commission, [1970] ECR 975 37622/70, Commission v Council (ERTA), [1971] ECR 263 270–1, 279, 350, 35125/70, Einfuhr- und Vorratsstelle für Getreide und Futtermittel v Köster et Berodt &

Co., [1970] ECR 1161 313, 32239/70, Norddeutsches Vieh- und Fleischkontor GmbH vHauptzollamt Hamburg-St

Annen, [1971] ECR 49 337, 395

Table of Cases xxix






41/70 to 44/70, International Fruit Company and others v Commission, [1971]ECR 411 90, 355

80/70, Defrenne v Belgian State, [1971] ECR 445, 8305/71, Schöppenstedt v Council, [1971] ECR 975 367, 368, 37022/71, Béguelin Import Co. v S.A.G.L. Import Export, [1971] ECR 949 69248/71, Commission v Italy, [1978] ECR 629 125–61/72, Frilli v Belgium, [1972] ECR 457 5886/72, Europemballage and Continental Can v Commission, [1973] ECR 215 717,

718, 725, 735, 74218/72, Granaria v Produktschap voor Veevoeder, [1972] ECR 1163, 14021/72 to 24/72, International Fruit Company NV and others v Produktschap voor

Groenten en Fruit, [1972] ECR 1219 110, 112, 289, 33630/72, Commission v Italy, [1973] ECR 161 37339/72, Commission v Italy, [1973] ECR 101 14048/72, Brasserie de Haecht v Wilkin-Janssen (II), [1973] ECR 77 70063/72 to 69/72, Werhahn Hansamühle and others v Council, [1973] ECR

1229 36876/72, Michel S. v Fonds national de reclassement social des handicaps, [1973] ECR

457 58577/72, Capolongo v Azienda Agricole, [1973] ECR 611 476, 4892/73, Geddo v Ente Nazionale Risi, [1973] ECR 865 5004/73, Nold v Commission, [1974] ECR 491 433, 434, 435, 437, 4386/73 and 7/73, Istituto Chemioterapico Italiano and Commercial Solvents

Corporation v Commission, [1974] ECR 223 725, 72834/73, Fratelli Variola SpA v Amministrazione delle Finanze dello Stato, [1973] ECR

981 9139/73, Rewe-Zentralfinanz eGmbH v Direktor der Landwirtschaftskammer

Westfalen-Lippe, [1973] ECR 1039 49240/73 to 48/73, 50/73, 54/73 to 56/73, 111/73, 113/73 and 114/73, Coöperatieve

Vereniging ‘Suiker Unie’ UA and others v Commission, [1975] ECR1663, 698, 703, 720

120/73, Lorenz v Germany, [1973] ECR 1471 791, 793127/73, Belgische Radio en Televisie (BRT) and others v SABAM and others,

[1974] ECR 313 720, 783, 787152/73, Sotgiu v Deutsche Bundespost, [1974] ECR 153 584, 608, 609155/73, Sacchi, [1974] ECR 409 651, 753166/73, Rheinmühlen-Düsseldorf, [1974] ECR 33 382167/73, Commission v France, [1974] ECR 359 576169/73, Compagnie Continentale France v Council, [1975] ECR 117 367181/73, Haegemann v Belgium, [1974] ECR 449 109, 378192/73, Van Zuylen frères v Hag AG, [1974] ECR 731 511, 5222/74, Reyners v Belgium, [1974] ECR 631 86, 476, 592, 594, 607, 6088/74, Procureur du Roi v Dassonville, [1974] ECR 837 476, 500, 501, 503, 5049/74, Casagrande v Landeshauptstadt München, [1974] ECR 773 228–9, 582

xxx Table of Cases






european union law - cambridge university press

Documents