EU Business Law flash cards
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What are the stages of economic integration?
Free trade, customs union, common market, economic union, economic and monetary union, and full union.
What is free trade?
free trade entails that nations agree to remove all trade barriers such as customs duties and quotas on goods and services passing between them.
What is a Customs Union?
A customs union is a trade agreement between two or more nations that entails that between the member states there are no barriers to trade and that all member states agree on one trade barrier for goods entering the union.
What is the common market?
the common market is a trade agreement similar to that of a customs union however, it also allows for the free trade of goods, services, labor and capital.
What is Host Country Control?
Host Country Control is when the domestic laws of the nation that is importing the goods pervails. In other words, the rules of the country that the economic activity is taking place apply.
What is the Harmonised Model?
The harmonised model is when one set of rules applies to the entirety of economic market.
What is home country control?
Home Country Control is when the rules of the country that is producing the product apply.
History of the internal market
-marshall plan (1948) declares purpose of peace, stability and welfare.
- European Coal and Steel Community (ECSC) of 1951: creation of common market for coal and steel.
- a number of failed initiatives towards EU federalization (EDC & EPC)
- Rome Treaty of 1957 established European Economic Community. Harmonised Model, started well but the pace slowed.
- empty seat crises in the 60's resolved by the luxembourg accords of 1965 - eurosclerosis of the seventies: no legislative impuls. Paris summit of December 1974 formalizes the European Council as EU institution.
- Single European Act 1987: Reinvigoration of the Common Market by providing qualified majority voting for internal market policies
How did the internal market develop?
After the Single European Act of (1987), “the internal market was an area without internal frontiers in which the free movement of goods, persons, services and capital is ensured.” Furthermore, QMV replaced unanimity in single market legislations.
What is mutual recognition of goods?
mutual recognition is when there is an assurance of market access for goods that are not, or partially not subject to EU harmonisation legislation. Any good lawfully sold in one EU state can be sold in another.
- there are still exceptions that exist that allow for member states to derogate from the rule
What was the “new deal harmonization”?
the new deal of harmonization meant that harmonisation efforts become more focused on circumstances where national rules survive the application of the treaty by the court of justice.
What is the Eurozone?
The Eurozone is currency union made up of 19 members states that participate in the monetary union and the union has a common monetary policy.
What is a Market?
A market as defined by Article 26 of the TFEU is an area without internal frontiers in which the free movement of goods, services, and capital is ensured in accordance with the provisions of the treaty.
How is the Internal Market regulated?
The Internal Market is regulated through article 114 of the TFEU
What are consumers?
Consumers are market citizens that engage in economic activity.
What is a restitutionary claim?
A restitutionary claim is when traders can claim back charges unlawfully paid, unless the costs have been passed onto third parties.
What are permissible charges?
Permissible charges are those that are allowed when permits and tests are required and charges are required for those tests.
When are charges permissible?
If the charge is applied systematically and to both national and foreign products. If it constitutes the payment for a service and is proportionate to the costs of the service, and it is imposed by union law.
What was Case 18/87 Commission v. Germany?
Fees on live animal imports to cover inspections required by EU law. therefore it is a permissible charge.
What was Case 89/76 Commission v. Netherlands?
Checks according to mandatory obligations imposed by international conventions to which all member states are party and treated in the same way.
What is Article 110 of the TFEU?
No member state shall impose, directly or indirectly, on the products of other member states any internal taxation of any kind in excess of that imposed directly or indirectly on similar domestic products.
Furthemore, member states must refrain from directly or indirectly taxing products of other member states of such nature to afford indirect protection to other products.
What was Case 184/85 Commission v. Italy?
This case is important as it touched on the notion of similar goods. In the case it talks about the taxation on bananas but not other fruits. Italy did not produce any bananas. However, they produced other fruits. The court ruled against italy as the charge on bananas was an equivalent to custom duties. Although bananas are not similar goods, they are competing goods.
What was the John Walker Case 243/84?
Article 110 of the TFEU was not applicable in this case as there were clear different characteristics between liqueur and whiskey.
What was Article 110(1) of the TFEU?
It states that you cannot discriminate on grounds of nationality. Must charge some rates of taxation between similar domestic and non domestic products.
What is the condition of payment of taxes?
Domoestic and foreign products should be treated equally when it comes to conditions of payment of taxes. More lenient approach of domestic companies amount to direct discrimination.
What is Case C-55/79 Commission v. Ireland?
It was a case brought forth by the commission on irish legislation that required imported animal feed to have higher protein content than the ones domestically produced. The court ruled in favour of the commission as this legislation is a clear measure having equivalent effect to quantitative restrictions.
What is Indirect Discrimination?
Indirect discrimination is the measure that is not discriminatory in the face of it but has the effect of putting domestic products in an advantageous position.
What is Tobacco Advertising I?
the court concluded that this directive did not have the purpose to regulate the internal market as laid in article 114 of the TFEU but it dealt with public health rather.
What is the significance of the Tobacco Advertising I case?
This case laid the judgment that directives must eliminate obstacles to trade or deal with appreciable distortions of competition. Usage must be connected to national laws
What is Article 110(2) of the TFEU?
Sub section 2 of Article 110 concerns different products that are non the less in competition with each other as revealed by the cross elasticity of demand. If tax causes indirect protection to other products, the national measure is prohibited by article 110(2) of the TFEU.
What was the Case of the Commission v. UK (Beer and Wine)?
This case dealt with the higher imposed taxes on wine compared to beer. The court ruled that these taxes are not in line with EU law and thus reinforced the principle that EU member states must not impose higher taxes on imported goods that are similar to and compete with domestic products.
What are examples of justifications of indirect taxation under article 110 of the TFEU?
- Chemial Farmaceuti Case 140/79: Taxing synthetic alcohol differently from fermented so as to promote agricultural fermentation.
- Commission v. France Case C-213/96: Taxing sweet wine less than liqueur wines in order to provide fiscal incentives for areas in which it was harder to grow wine.
- Commission v. Greece Case C-132/98: Progressively higher taxes based on cylinder volumes for environmental reasons.
What is Article 30 of the TFEU?
Customs duties on imports and exports and charges having equivalent effect shall be prohibited between member states. This prohibition shall also apply to customs duties of a fiscal nature.
