Outline

1. Outline • Basic Concepts of Public International Law • WTO Basics – The Multilateral Trading System • EU Law – Core Ideas • Summary

2. Table of Contents • Introduction • Institutions and Decision-Making • Sources and Forms of EULaw • Introduction to the Substantive Law of the EU

3. 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

4. 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

5. 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)

6. 1 Introduction1.4 The Three Pillars The European Union Police and judicial cooperation in criminal matters Common foreign and security policy European Community domain (most of common policies) The Treaties (now: Treaty of Lisbon)

7. 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

8. 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?

9. 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

10. 1 Introduction1.8 Eight Enlargements source: http://europa.eu/about-eu/index_en.htm

11. 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)

12. 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?

13. 1 Introduction1.11 EU Share of World Trade Share of world trade in goods (2006) Share of world trade in services (2005) EU 17.1% EU 26% Others 44.9% Others 50.5% United States 16% Japan 6.6% United States 18.4% China 9.6% China 3.8% Japan 6.9% source: http://europa.eu/about-eu/index_en.htm

14. Table of Contents • Introduction • Institutions and Decision-Making • Sources and Forms of EULaw • Introduction to the Substantive Law of the EU

15. 2 Institutions and Decision-Making 2.1 EU Institutions – Overview European Council Council of Ministers (Council of the EU) European Parliament European Commission Court of Justice Court of Auditors Economic and Social Committee Committee of the Regions European Investment Bank European Central Bank Agencies

16. 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)

17. 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

18. 2 Institutions and Decision-Making 2.4 Council Decision-Making – QMV • Majority of MS plus 255 votes Germany, France, Italy, and the UK - each 29 Spain and Poland - each 27 Romania 14 Netherlands 13 Belgium, Czech Republic, Greece, Hungary, and Portugal - each 12 Austria, Bulgaria, and Sweden - each 10 Denmark, Ireland, Lithuania, Slovakia, and Finland - each 7 Estonia, Cyprus, Latvia, Luxembourg, and Slovenia - each 4 Malta 3 Total: 345

19. 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

20. 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

21. 2 Institutions and Decision-Making 2.7 Members of the European Parliament – by MS Number of members elected in each country Finland 14 18 Latvia 9 35 Romania Austria Lithuania Belgium 24 13 Slovakia 14 78 France Germany 6 Bulgaria 18 Luxembourg Slovenia 7 99 24 Cyprus 6 Greece Malta 5 Spain 54 Hungary 27 Czech Republic 24 Netherlands Sweden 19 24 Ireland 13 Denmark Poland 54 78 United Kingdom 14 24 Italy 78 6 Estonia Portugal Total 785

22. 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

23. 2 Institutions and Decision-Making 2.9 Political Groups in the European Parliament (March 2008) Alliance of Liberals and Democrats for Europe 101 Independence/ Democracy 24 European People’s Party (Christian Democrats) and European Democrats 288 Greens/European Free Alliance 43 Union for Europe of the Nations 44 Socialist Group 215 Total : 785 Non-attached members and temporarily empty seats 29 European United Left - Nordic Green Left 41 source: http://europa.eu/about-eu/index_en.htm

24. 2 Institutions and Decision-Making 2.10 How EU Laws Are Made (simplified) Commission: draws up formal proposal interests groups, lobbyists, citizens, experts discuss and consult Council of Ministers + Parliament: decide National, municipal, and sometimes EU authorities implement decicions and legislation Commission (and, indirectly, Court of Justice) monitor the implementation of and compliance with decisions and legislation

25. Table of Contents • Introduction • Institutions and Decision-Making • Sources and Forms of EU Law • Introduction to the Substantive Law of the EU

26. 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)

27. 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

28. 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

29. 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

30. 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?

31. 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?