Freedom of Establishment/Provision of Services

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EU (Free Movement of Persons) Mind Map on Freedom of Establishment/Provision of Services, created by rhiannonfayemcdonald on 11/05/2013.
rhiannonfayemcdonald
Mind Map by rhiannonfayemcdonald, updated more than 1 year ago
rhiannonfayemcdonald
Created by rhiannonfayemcdonald almost 11 years ago
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Resource summary

Freedom of Establishment/Provision of Services
  1. TFEU Arts.49-55 prohibit discriminatory restrictions being placed on those who wish to establish themselves (individuals and businesses)
    1. TFEU Arts.56-62 afford the right of free movement to those who wish to provide a service in a host state, normally without having a base there
      1. Royer Case 48/75 - CJEU emphasised that much common ground between the 3 groups and that workers, establishment and provision of services are all 'based on the same principles in so far as they concern the entry into and the residence in the territory of MS of persons covered by union law and the prohibition of all discrimination between them on grounds of nationality
        1. Establishment
          1. Definition
            1. TFEU Arts.49&54 - give right of any business, already having a base in one MS, to establish a further permanent base in a host state under same condition enjoyed by nationals
              1. EU citizens wishing to work on a self-employed basis in a host state are also provided the right to move to do so
                1. Such businesses and individuals are required to comply with national laws applicable in host state, unless they can be shown to be discriminatory on basis of nationality
                2. Factortame Case C-221/89 - 'the pursuit of an economic activity through a fixed establishment in another MS for an indefinite period'
                3. Confusion over whether a person is employed/self-employed - Trojani Case C-456/02 - CJEU made clear that anyone working under the control of another and is receiving a wage/salary will be considered a worker... while those involved in setting up and running of business for themselves will be considered self-employed
                  1. TFEU Art.54 - for companies to enjoy these rights they must demonstrate that they are legally established in one MS (Primary) and wish to conduct business in another MS (Secondary)
                    1. If they later wish to move their main place of business to the host state to benefit from eg, less tax, only the primary MS can raise objections(Centros Case C-212/97)
                    2. Recognition of qualifications
                      1. TFEU Art.53 provides the Council with the authority to issue directives relating to recognition of training and qualifications obtained within the union and as a result harmonising legislation has been enacted
                        1. CJEU held that national authorities have an obligation to consider the training and/or qualifications held and compare to domestic provisions. Where they are equivalent the host state is required to recognise them as such (Vlassopoulou Case 340/89) Where they are not foudn to be equivalent the state must provide reasons for decision which are open to judicial review (Heylens Case 222/86) Where they are part-equivalent the state may require further training to 'make up the difference'
                      2. Limitations - same as citizens (public policy, security, health) and workers
                      3. Provision of Services
                        1. Definition
                          1. TFEU Art.57 - to be a service it must be 'provided for remuneration' Court has interpreted widely to include medical services, vocational training and tourism, and is likely to include any (lawfully) temporary presence in a host state, unless specifically covered by another area of the treaty
                          2. Rights of service providers and recipients
                            1. General right to exit home state and enter host state as for all citizens
                              1. No discrimination TFEU Art.56, supported by general non-discrimination TFEU Art.18 and TFEU Art.24
                                1. Exceptions to these rights - TFEU Art.62 specifically states that the derogations relating to establishment found in TFEU Arts.51-54 (public policy, security, health) will also apply to the right to move freely to provide a service
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