Outline I.Basic Concepts of Public International Law II.WTO Basics – The Multilateral Trading System III.EU Law – Core Ideas IV.Summary.

Outline

I. Basic Concepts of Public International Law

II. WTO Basics – The Multilateral Trading System

III. EU Law – Core Ideas

IV. Summary

Table of Contents

1. Introduction

2. Institutions and Decision-Making

3. Sources and Forms of EU Law

4. Introduction to the Substantive Law of the EU

1 Introduction1.1 From the European Communities to the EU

• Originally, the term “European Communities” was given collectively to three IGO´s:

– European Economic Community, EEC – also referred to as the European Community (EC)

– European Atomic Energy Community (Euratom)– European Coal and Steel Community (ECSC) – expired in 2002

• Term “European Union” introduced by the Treaty on European Union (also referred to as the Maastricht Treaty, 1992):

– described the extension by the member states into additional policies and areas of cooperation

1 Introduction1.2 Treaty of Lisbon

• Treaty of Lisbon: – Signed 13 December 2007, entered into force 1 December 2009 after

ratification in all 27 EU member states– EU successor of the European Community

• EU has legal personality• EU successor of EC

1 Introduction1.3 Treaty of Lisbon – Some Details

• European Council now has a president• EU High Representative for Foreign Affairs and Security Policy• Codecision extended• Double (qualified) majority in the Council• Citizens´ right of initiative• Lisbon Treaty – The EU´s new legal basis:

– amends the Treaty on the European Union– amends and renames the Treaty Establishing the European

Community (now: Treaty on the Functioning of the European Union)

– refers to the EU´s Charter of Fundamental Rights (now legally binding)

1 Introduction1.4 The Three Pillars

European Community

domain (most of common policies)

Common foreign and

security policy

Police and judicial

cooperation in criminal

matters

The Treaties (now: Treaty of Lisbon)

The European Union

1 Introduction1.5 General Aims of the European Integration

• Peace in post-war Europe• Creation of the common market which was to be achieved by

abolishing obstacles to the freedom of movement of central factors of production:

– Goods (CU interrelated to the free movement of goods)– Workers– Services– Capital

• Development of common policies in certain fields, e.g.– Agriculture– Transport– Competition

1 Introduction1.6 General Aims (continued)

• Economic wealth• “Pooling of resources” by a partial transfer of sovereignty:

– Union takes over in certain agreed areas– Member states cannot act as they see fit anymore (at least not in

the areas of policy transferred to the EU)

• Progress to a federal Europe?

1 Introduction1.7 Nature of the Union

• Supranationalism:– decisions are made at a new and higher level than that of the

member states themselves (to the degree agreed upon)

• Intergovernmentalism:– IGO approach– Decisions are made through negotiations

• EU: hybrid legal system containing elements of both supranationalism and intergovernmentalism

• No federalism

1 Introduction1.8 Eight Enlargements

source: http://europa.eu/about-eu/index_en.htm

1 Introduction1.9 Candidate Countries and Potential Candidates

• Candidates:– Croatia– Turkey– Former Yugoslav Republic of Macedonia

• To-be candidates:– Albania– Bosnia and Herzegovina– Montenegro– Serbia– Kosovo (under UN Security Council Resolution 1244)

1 Introduction1.10 External Relations

• Diverse roles in the world order(s)– Predominantly trade relations (such as commercial agreements,

e.g., WTO-membership and agreements)– Power to conclude international agreements in areas clearly within

the competences of the EU (CCT, agriculture, fishery)

• Political, defence, and security activities still weak and divided (despite the Common Foreign and Security Policy, CFSP)

• Immigration and asylum: fortress Europe?

1 Introduction1.11 EU Share of World Trade

source: http://europa.eu/about-eu/index_en.htm

Share of world trade in goods (2006)

Share of world trade in services (2005)

Others50.5%

EU17.1%

United States16%

Japan6.6%

China9.6%

Others44.9%

EU26%

United States18.4%

Japan6.9%

China3.8%

Table of Contents

1. Introduction

2. Institutions and Decision-Making

3. Sources and Forms of EU Law

4. Introduction to the Substantive Law of the EU

2 Institutions and Decision-Making 2.1 EU Institutions – Overview

European Parliament

Court of Justice

Court of Auditors

Economic and Social Committee Committee of the Regions

European Council

Council of Ministers(Council of the EU)

European Commission

European Investment Bank European Central BankAgencies

2 Institutions and Decision-Making 2.2 The Council (of Ministers)

• Each MS sends one minister• Main legislative organ of the communities (besides parliament)• Council has the power to take decisions and to delegate to the

commission• Council is chaired by a presidency which is held by each of the

member states in turn for a period of six months only (rotation)

2 Institutions and Decision-Making 2.3 The Council (of Ministers)

• Coordination of the general economic policies of the member states (both internally and with the rest of the world)

• In charge of common foreign policy and common security policy• Council decision-making and forms of vote:

– Unanimity – all member states must agree– Qualified majority voting (QMV) – see next slide– Simple majority voting

2 Institutions and Decision-Making 2.4 Council Decision-Making – QMV

• Majority of MS plus 255 votes

345Total:

3Malta

4Estonia, Cyprus, Latvia, Luxembourg, and Slovenia - each

7Denmark, Ireland, Lithuania, Slovakia, and Finland - each

10Austria, Bulgaria, and Sweden - each

12Belgium, Czech Republic, Greece, Hungary, and Portugal - each

13Netherlands

14Romania

27Spain and Poland - each

29Germany, France, Italy, and the UK - each

2 Institutions and Decision-Making 2.5 The Commission

• Composition:– Commission consists of 27 members (commissioners)– Commissioners only formally nominated representatives of “their” MS – required to be completely independent in the performance of their

duties

• Commission is assisted by about 25,000 civil servants• Fulfils the role of an executive organ (administration)• Sole right to propose legislation: “monopoly” on legislative initiative• Able to formulate policy within the parameters of the agreed policy

areas contained in the treaties and to make proposals for legislation to realise this

• Implementation of the Council´s decisions

2 Institutions and Decision-Making 2.6 The Commission – Tasks and Duties

• “Guardian” of the communities• Commission ensures that EU law is abode by• Commission prosecutes breaches of EU law by

– Member states– Other institutions– Individuals under various primary and secondary provisions (e.g.,

competition rules)

• Formulation and proposition of policy initiatives• Initiator of legislation• Management of the community´s annual budget• Representation of the EU (formerly: EC) in IGO´s such as the

WTO

2 Institutions and Decision-Making 2.7 Members of the European Parliament – by MS

United Kingdom13

24

78

78

14

Italy

Ireland

24Hungary

Greece

99Germany

France

Finland

6Estonia

14Denmark

24Czech Republic

6Cyprus

18Bulgaria

24Belgium

18Austria

Total 785

78

19Sweden

54Spain

7Slovenia

14Slovakia

35Romania

24Portugal

54Poland

27Netherlands

5Malta

6Luxembourg

13Lithuania

9Latvia

Number of members elected in each country

2 Institutions and Decision-Making 2.8 European Parliament

• Plenary sessions in Strasbourg – meetings in Brussels – secretariat in Luxembourg

• Elected directly for a period of five years• No original legislative initiative• Various legislative procedures such as codecision procedure,

cooperation, consultation, assent procedure• Budgetary powers• Indirect influence – for instance

– non-binding resolutions– committee hearings, – parliament must approve all development grants (e.g. post-war Iraq

reconstruction)

• Powers extended under Lisbon Treaty

2 Institutions and Decision-Making 2.9 Political Groups in the European Parliament (March 2008)

European UnitedLeft - Nordic Green Left

41

Socialist Group215

Greens/EuropeanFree Alliance

43

Independence/Democracy

24

Alliance of Liberals andDemocrats for Europe101 European People’s Party

(Christian Democrats)and European Democrats288

Union for Europeof the Nations44

Non-attached members andtemporarily empty seats29

Total : 785

source: http://europa.eu/about-eu/index_en.htm

2 Institutions and Decision-Making 2.10 How EU Laws Are Made (simplified)

interests groups, lobbyists,

citizens, experts discuss and

consult

Commission: draws up formal proposal

Council of Ministers + Parliament: decide

Commission (and, indirectly,

Court of Justice) monitor the

implementation of and compliance with decisions and

legislation

National, municipal, and sometimes EU authorities implement decicions and

legislation

Table of Contents

1. Introduction

2. Institutions and Decision-Making

3. Sources and Forms of EU Law

4. Introduction to the Substantive Law of the EU

3 Sources, Forms and Principles of Community Law 3.1 Legal System of the Community

• Principal sources of community law are the EC and EU Treaties• Reform Treaty (“Lisbon Treaty”) integrates these widespread

sources of law• Deductive “architecture” of the Community´s Treaties/legal order• Gaps and ambiguities in the legislation and interpretation of the

Treaties are resolved by the CJ (if challenged)

3 Sources, Forms and Principles of Community Law 3.2 Primary and Secondary Legislation

• Primary legislation:– Treaties under public international law– Primary legislation (the treaties) make up the constitutional law of

the European Union– Unanimously agreed on by governments from all member states– Basic policies and powers of the Union– Institutional structure and legislative procedures

• Secondary legislation are the “Laws” passed by the EU Institutions:

– Regulations, – Directives, – Decisions, – Recommendations and opinions

3 Sources, Forms and Principles of Community Law 3.3 Regulation

• A regulation is a legislative act of the EU/EC („EU law“)• Simultaneaously enforceable as law in all member states (self

executing)• No transformation/implementation (by the member states)

necessary in order to become effective• Regulations override all national laws dealing with the same

subject matter• Subsequent national legislation must be in line with the

regulation• Direct effect not to be impeded by the member states

3 Sources, Forms and Principles of Community Law 3.4 Directive

• A directive is a legislative act of the EU• Directives require member states to achieve a particular regulatory

effect without dictating the means for that effect in detail• Directives call for implementing measures – not self executing• Directives set out aims which must be achieved but leave the

choice of the form and method of implementation to the member states

• Normally, directives leave member states with with a wider area of discretion (leeway) as regards the concrete rules to be adopted

• Directives have been held to give rise to directly enforceable rights in specific circumstances and if certain criteria are met, e.g. no implementation or incorrect implementation

3 Sources, Forms and Principles of Community Law 3.5 National Farmers´ Union Case

• Because of serious concerns about mad cow disease (BSE) the Commission enjoined the UK from exporting bovine meet and products from 1996-1998. After the ban had been lifted France unilaterally restricted beef imports from the UK.

• Why did France not have the right to unilaterally prohibit the importation of beef products from UK?

3 Sources, Forms and Principles of Community Law 3.6 Consten and Grundig v. Commission of the EC

• Does EC Treaty Art. 85 apply only to agreements that distort trade between competitors?

• Can there be a distortion of trade between the member states if the net effect of an agreement is to increase trade?

• Should vertical sole distribution agreements be presumed to be not harmful?

• Is an entire agreement invalidated by a single bad provision? • Does EC Treaty Art. 222 prohibit the Commission from regulating

property rights?