General principles:
Freedom to provide services / Freedom of establishment
The freedom of establishment,
set out in
Article 49 (ex Article 43 TEC)
of the Treaty and
the freedom to provide cross border services, set out in
Article 56 (ex Article 49 TEC), are
two of the “fundamental freedoms” which are central to the effective
functioning of the EU Internal Market.
The principle of freedom of establishment enables an economic operator
(whether a person or a company) to carry on an economic activity in a
stable and continuous way in one or more Member States. The principle of
the freedom to provide services enables an economic operator providing
services in one Member State to offer services on a temporary basis in
another Member State, without having to be established.
These provisions have direct effect. This means, in practice, that
Member States must modify national laws that restrict freedom of
establishment, or the freedom to provide services, and are therefore
incompatible with these principles. Member States may only maintain such restrictions in specific
circumstances where these are justified by overriding reasons of general
interest, for instance on grounds of public policy, public security or
public health; and where they are proportionate.
Under the Treaties the Commission is responsible for ensuring that
Community law, including Articles 49 and 56, is correctly applied. As the
guardian of the Treaty, the Commission has the option of commencing
infringement proceedings against a Member State which
they believe to be incompatible with Community law.
The recently adopted Services
Directive aims to create a legal framework for ensuring that both
service providers and recipients benefit more easily from the fundamental
freedoms guaranteed in Articles 49 and 56 of the Treaty. The directive
complements existing Community instruments and its provisions are, to a
large extent, based upon the case law of the European Court of Justice
(see below)
Guides to the case law of the European Court of Justice
The
principles of freedom of establishment and free movement of services have been
clarified and developed over the years through the case law of the European
Court of Justice.
The Commission has produced the following guides to the case law of the
European Court of Justice concerning freedom of establishment and freedom to provide services. The guides gather together the
essential passages of key cases, thus making it easier to see how the Court has
interpreted these important principles in practice.
| 30.05.2011 |
Guide to the Case Law of the European Court of Justice on Articles 56 et
seq. EC Treaty:
Freedom to Provide Services |
  |
| 30.05.2011 |
Guide to the Case Law of the European Court of Justice on Articles 49 et
seq. EC Treaty: Freedom of Establishment |
  |
Infringements
|