FREE MOVEMENT OF PAYMENTS AND CAPITALS

Question 1

What are Capitals? What’s their movement?

Answer 1

a) Money or other financial instruments
b) Transferral of capitals from a MS to another one for investment reason only

Question 2

What are Payments?

Answer 2

Transferral of money which a contracting party owes to another contracting party due to a contract concluded by the same

Question 3

Payments as regards Art. 63 TFEU

Answer 3

Within the EU Law framework, all restrictions on payments, between MS or MS and Thirds, shall be prohibited.

has DIRECT EFFECT

Question 4

Exceptions to Free Movement of Capitals as stipulated in the TFEU: EXTERNAL DIMENSION

Answer 4

1) Third-country restrictions
a) GRANDFATHER PROVISIONS: restrictions allowed if of int. agreements with third countries before a certain date
b) ECONOMIC and MONETARY UNION: restrictions allowed if regards third countries to safeguard against serious difficulties of the economic and monetary union

2)EU Economic sanctions affecting the external capital and payments movements

Question 5

Exceptions to Free Movement of Capitals as stipulated in the TFEU: INTERNAL DIMENSION

Answer 5

1) Third-country restrictions
a) GRANDFATHER PROVISIONS: restrictions allowed if of int. agreements with third countries before a certain date
b) ECONOMIC and MONETARY UNION: restrictions allowed if regards third countries to safeguard against serious difficulties of the economic and monetary union

2)EU Economic sanctions affecting the external capital and payments movements