ESSENTIAL EU LAW IN TEXT by ORAC Kiadó

Essential EU LAW IN TEXT 4th edition

Christa Tobler Jacques Beglinger

Companion text to: Essential EU Law in Charts, 4th edition, 2018 Companion website: http://www.eur-charts.eu/webcompanion

EUR-Charts – EU Law in Charts project (www.eur-charts.eu)

Essential EU LAW IN TEXT 4th edition

Christa Tobler Jacques Beglinger

Lap- és Könyvkiadó Kft. BUDAPEST, 2018

HVG-ORAC Publishing House Ltd., 1037 Budapest, Montevideo u. 14., Hungary. Telephone: + 36 1 340-2304 Website: www.hvgorac.hu © Christa Tobler, 2018 © Jacques Beglinger, 2018 © HVG-ORAC Lap- és Könyvkiadó Kft., 2018

ISBN: 978-963-258-393-8 4th edition

Printed in Hungary by MULTISZOLG BT. Companion text to: Essential EU Law in Charts, 4th edition, 2018, ISBN: 978-963-258-394-5 Companion website: http://www.eur-charts.eu/webcompanion All rights reserved. No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or any information storage or retrieval system without prior permission from the publisher.

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PREFACE The present book is intended as a companion to our publication “Essential EU Law in Charts”. We hope that it will be particularly useful for those who feel that, in addition to the charts book with its more condensed and graphically presented information, they need a brief text on EU law as it results from the Lisbon revision. We would imagine that this might include, among others, students taking courses on EU law for the first time, in particular those who do not have a background in law but also students coming to Europe from very different legal cultures. The book provides a brief and simple text on matters dealt with in the charts book, including references to charts that are relevant in a given context. We therefore recommend that the text be used together with the charts. It should be noted that it is in the charts that information on the relevant Treaties, secondary law and case law from the European Court of Justice can be found, including detailed tables on these matters and an index with keywords related to the subject matters that are dealt with in the charts. Being a companion text to the charts, the present text limits itself in terms of tables, it does, however, provide a table of the charts referred to in the text, so as to help the reader in making the link between the charts and the text. The present 4th edition reflects the state of law on 1 July 2018. It provides a number of updates, including in particular a new part on withdrawal from the European Union under Art. 50 TEU and a note on data protection in the EU. We plan to put any updates and, if necessary, any corrections to the present book on the companion website, http://www.eur-charts.eu/webcompanion. Solutions to the exercises contained in the book can also be found on this website. Both the charts and the text are products of the “EUR-Charts – EU Law in Charts” project. Information on this project can be found at www.eur-charts.eu. We would like to dedicate this book to our respective families, in particular to our parents. Christa Tobler Leiden and Basel

Jacques Beglinger Zurich

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Content overview PART 1: THE LEGAL FOUNDATIONS OF THE EU............................................................................. 13 A. introduction............................................................................................................................... 15 B. THE DEVELOPMENT OF THE EUROPEAN UNION....................................................................... 17 C. THE INSTITUTIONAL FRAMEWORK OF THE EU.......................................................................... 26 D. COMPETENCES OF THE EU and the adoption of secondary measures.................. 33 E. THE NATURE OF The EU AND EU LAW........................................................................................ 41 PART 2: BASIC ECONOMIC LAW OF THE EU................................................................................... 51 A. INTRODUCTION............................................................................................................................... 53 B. The Internal market................................................................................................................ 57 C. Competition law........................................................................................................................ 84 PART 3: SOCIAL LAW.......................................................................................................................... 95 A. EU SOCIAL LAW IN GENERAL....................................................................................................... 97 B. BY WAY OF EXAMPLE: TWO IMPORTANT SUB-FIELDS............................................................. 99 PART 4: INTEGRATION TECHNIQUES............................................................................................... 105 A. Positive and negative integration AS LINKED TO PRIMARY AND SECONDARY EU LAW............................................................................................................ 107 B. Different integration techniques.................................................................................... 110 PART 5: ENFORCEMENT..................................................................................................................... 113 A. General remarks...................................................................................................................... 115 B. The actions for annulment (Arts. 263 TFEU et seq.) and for Failure to act (Arts. 265 and 266 TFEU)............................................................................................................ 116 C. The Infringement procedure (Arts. 258 TFEU Et seq.)................................................ 118 D. The preliminary ruling Procedure (Art. 267 TFEU)...................................................... 119 E. Actions for damages and for unjust enrichment..................................................... 121 F. Exercises...................................................................................................................................... 123

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Table of contents

PART 1: THE LEGAL FOUNDATIONS OF THE EU................................................................................. 13 A. introduction.................................................................................................................................... 15 I. “EU law” and “Community law”........................................................................................................ 15 II. EU law as a special type of international law................................................................................... 15 III. Aim, means, specific objectives and fundamental values of the EU................................................16 IV. The principle of sincere cooperation between the Member States and the EU...............................16 V. Language versions of EU law and web-based information..............................................................16 B. THE DEVELOPMENT OF THE EUROPEAN UNION........................................................................... 17 I. European integration against the global background....................................................................... 17 II. Early steps of integration in Europe: the European Communities.................................................... 17 III. From the Communities to the larger construct of the EU................................................................. 18 1. The creation of the EU through the Maastricht Treaty................................................................. 18 2. Subsequent changes in the structure of the EU.......................................................................... 19 a) The EU after the Amsterdam Treaty........................................................................................ 19 b) A failed attempt: the Constitutional Treaty...............................................................................20 c) The EU after the Lisbon Treaty................................................................................................20 IV. Changing the reach and content of the Treaties..............................................................................21 1. EU membership...........................................................................................................................21 a) Accession.................................................................................................................................21 b) Withdrawal...............................................................................................................................21 2. Changing the content of the Treaties...........................................................................................22 a) Treaty revisions........................................................................................................................22 b) Renumbering of the Treaties....................................................................................................23 V. The global background of European integration revisited................................................................24 VI. Exercises..........................................................................................................................................25 C. THE INSTITUTIONAL FRAMEWORK OF THE EU..............................................................................26 I. General remarks..............................................................................................................................26 II. The political institutions of the EU....................................................................................................26 1. The European Council (Art. 15 TEU and Arts. 235-236 TFEU)...................................................26 2. The European Parliament (Art. 14 TEU and Arts. 223-234 TFEU)..............................................27 3. The Council (of Ministers) (Art. 16 TEU and Arts. 237-243 TFEU)..............................................28 4. The European Commission (Art. 17 TEU and Arts. 244-250 TFEU)...........................................28 5. The High Representative of the Union for Foreign Affairs and Security......................................29 III. The judicial institution: the European Court of Justice (Art. 19 TEU and Arts. 251-281 TFEU).......29 IV. Financial institutions and bodies......................................................................................................30 1. The European Central Bank (Arts. 282-284 TFEU).....................................................................30 2. The Court of Auditors (Arts. 285-287 TFEU)............................................................................... 31 3. The European Investment Bank (Arts. 308-309 TFEU)............................................................... 31 V. Size and cost of the EU administration............................................................................................ 31 VI. Exercises.......................................................................................................................................... 31 D. COMPETENCES OF THE EU and the adoption of secondary measures......................33 I. The division of powers between the EU and its Member States......................................................33 1. Conferral of powers on the EU.....................................................................................................33 2. Exercise of EU competences.......................................................................................................33 3. Ways of attributing competences to the EU.................................................................................33 II. Legal basis provisions......................................................................................................................34 III. Form of action and procedures for the adoption of secondary measures.......................................34 8

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1. Type of act that can be adopted...................................................................................................35 a) Secondary measures or legal acts: an overview.....................................................................35 b) Specification by legal basis provisions: the examples of Arts. 114 and 115 TFEU..................35 2. The adoption of secondary legal acts..........................................................................................35 a) General remarks on the different procedures..........................................................................35 b) Legislative procedures and emergency brakes.......................................................................36 i. General remarks..................................................................................................................36 ii. The ordinary legislative procedure (Art. 294 TFEU)...........................................................36 iii. The consultation procedure.................................................................................................37 iv. The consent procedure.......................................................................................................37 v. Emergency brakes...............................................................................................................37 c) Non-legislative procedures......................................................................................................38 d) Combination of different procedures........................................................................................38 IV. What can be done if the institutions breach the rules?....................................................................38 V. Exercises..........................................................................................................................................39 E. THE NATURE OF The EU AND EU LAW............................................................................................ 41 I. General remarks.............................................................................................................................. 41 II. Primacy or supremacy of EU law..................................................................................................... 41 III. Direct effect......................................................................................................................................43 1. Introduction..................................................................................................................................43 2. Direct effect of Treaty provisions..................................................................................................43 a) Vertical direct effect (as against the State)..............................................................................43 b) Horizontal direct effect (as against other individuals)..............................................................45 3. Direct effect of secondary EU measures.....................................................................................45 a) Direct effect of provisions of regulations..................................................................................45 b) Direct effect of provisions of directives....................................................................................46 c) Direct effect of provisions of decisions.................................................................................... 47 d) Direct effect of treaties with third states................................................................................... 47 e) If there is no direct effect: alternatives..................................................................................... 47 f) The effect of the Union’s general principles and the Charter of Fundamental Rights in favour of individuals..............................................................................................................48 4. The autonomy of European Union law.........................................................................................48 IV. Exercises..........................................................................................................................................48 PART 2: BASIC ECONOMIC LAW OF THE EU........................................................................................ 51 A. INTRODUCTION....................................................................................................................................53 I. EU law in the context of economic integration.................................................................................53 II. Stages of economic integration and their relevance for the EU.......................................................53 III. “Overarching” substantive law..........................................................................................................54 1. Overarching rules.........................................................................................................................54 a) The general principles of the EU..............................................................................................54 i. Fundamental rights..............................................................................................................54 ii. Proportionality.....................................................................................................................55 iii. Equality/equal treatment and non-discrimination................................................................55 b) The prohibition of discrimination on grounds of nationality......................................................55 c) Union citizenship......................................................................................................................55 d) Data protection.........................................................................................................................56 2. Overarching tasks........................................................................................................................56 IV. Exercises..........................................................................................................................................56 B. The Internal market....................................................................................................................57 I. Introduction......................................................................................................................................57 1. The internal or single market in the EU........................................................................................57 2. Analysing and applying free movement provisions......................................................................58 9

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II. Free movement of goods (Arts. 28 TFEU et seq.)............................................................................59 1. General remarks..........................................................................................................................59 2. Fiscal restrictions.........................................................................................................................59 a) The prohibition of customs duties............................................................................................60 b) The prohibition of discriminatory and protective taxation........................................................60 3. Quantitative restrictions...............................................................................................................61 a) General remarks......................................................................................................................61 b) Quantitative restrictions on imports.........................................................................................61 i. The prohibition under Art. 34 TFEU....................................................................................61 ii. Justification under Art. 36 TFEU.........................................................................................63 iii. Applying the complex provision of Art. 34 TFEU.................................................................64 c) Quantitative restrictions on exports.........................................................................................65 i. The prohibition under Art. 35 TFEU....................................................................................65 ii. Justification under Art. 36 TFEU.........................................................................................66 iii. Applying the complex provision of Art. 35 TFEU.................................................................66 4. Exercises......................................................................................................................................67 III. Free movement of persons (Arts. 45 TFEU et seq.) and of services (Arts. 56 TFEU et seq.).........69 1. Introduction..................................................................................................................................69 2. EU citizens and third-country nationals.......................................................................................69 3. Free movement for workers (Arts. 45 TFEU et seq.)...................................................................70 a) The scope of the provision.......................................................................................................70 b) The prohibition/rights............................................................................................................... 71 i. Market access..................................................................................................................... 71 ii. Movement and residence rights..........................................................................................72 iii. Family rights........................................................................................................................73 c) The possibility of derogations (justification)............................................................................. 74 4. Freedom of establishment (Arts. 49 TFEU et seq.)...................................................................... 74 a) The scope of the provision....................................................................................................... 74 b) Rights/obligations..................................................................................................................... 74 c) The possibility of derogations (justification).............................................................................75 d) Arts. 50 and 53 TFEU: the need for facilitating secondary legislation.....................................75 5. Free movement of services (Arts. 56 TFEU et seq.)....................................................................76 a) General remarks......................................................................................................................76 b) Scope.......................................................................................................................................76 c) Rights/obligations.....................................................................................................................77 d) The possibility of derogations (justification).............................................................................78 6. An overarching issue: the mutual recognition of professional qualifications and other professional rules.........................................................................................................................78 a) Mutual recognition of professional qualifications.....................................................................78 b) Other professional rules...........................................................................................................79 7. Exercises......................................................................................................................................80 IV. Free movement of capital (Arts. 63 TFEU et seq.)........................................................................... 81 1. General remarks on the free movement of capital (and of payments)......................................... 81 2. Free movement of capital.............................................................................................................82 a) Scope.......................................................................................................................................82 b) Rights/obligations.....................................................................................................................82 c) Derogations and the grandfather clause..................................................................................82 3. Exercises......................................................................................................................................83 C. Competition law.............................................................................................................................84 I. General remarks..............................................................................................................................84 II. Conduct of undertakings..................................................................................................................84 1. General remarks..........................................................................................................................84 2. Collusive conduct: Art. 101 TFEU................................................................................................85 a) The prohibition: the relevant conduct.......................................................................................85 i. Three forms of relevant conduct..........................................................................................85 ii. The inter-state element........................................................................................................85 10

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iii. The competition element.....................................................................................................86 iv. Examples of prohibited conduct..........................................................................................86 b) The legal consequences..........................................................................................................86 c) Exemptions..............................................................................................................................86 3. Abuse of a dominant position: Art. 102 TFEU..............................................................................87 a) The prohibition: the relevant conduct.......................................................................................87 i. Abuse of dominance............................................................................................................87 ii. The inter-state element........................................................................................................87 b) The legal consequences..........................................................................................................88 4. Enforcement of Arts. 101 and 102 TFEU.....................................................................................88 III. Merger control under Regulation 139/2004.....................................................................................88 IV. Undertakings with a special position under national law: Art. 106 TFEU........................................89 V. State conduct...................................................................................................................................89 1. Art. 4(3) TEU, Protocol No 27 and Arts. 101 or 102 TFEU..........................................................90 2. State aid control under Arts. 107 TFEU et seq............................................................................90 a) The prohibition: the relevant state conduct..............................................................................90 i. The concept of “aid”............................................................................................................90 ii. The inter-state and competition elements...........................................................................91 b) Derogations..............................................................................................................................91 c) The legal consequences..........................................................................................................91 d) Enforcement of Art. 107 TFEU.................................................................................................91 VI. Private enforcement.........................................................................................................................92 VII. Exercises..........................................................................................................................................92 PART 3: SOCIAL LAW..............................................................................................................................95 A. EU SOCIAL LAW IN GENERAL...........................................................................................................97 I. Introduction......................................................................................................................................97 II. The development of EU social policy...............................................................................................97 III. Social policy objectives and the means to achieve them.................................................................98 IV. Exercises..........................................................................................................................................98 B. BY WAY OF EXAMPLE: TWO IMPORTANT SUB-FIELDS.................................................................99 I. Social non-discrimination law..........................................................................................................99 1. Relevant legislation......................................................................................................................99 2. Field of application.......................................................................................................................99 3. Forms of discrimination..............................................................................................................100 4. Same and different treatment.................................................................................................... 101 5. Remedies and sanctions............................................................................................................102 II. Social security law.........................................................................................................................102 1. Coordinating social security law................................................................................................103 2. Non-discrimination in social security law...................................................................................103 III. Exercises........................................................................................................................................104 PART 4: INTEGRATION TECHNIQUES..................................................................................................105 A. Positive and negative integration AS LINKED TO PRIMARY AND SECONDARY EU LAW....................................................................................................................... 107 I. Positive and negative integration................................................................................................... 107 II. Primary and secondary law: which level applies?..........................................................................108 B. Different integration techniques....................................................................................... 110 I. Harmonisation................................................................................................................................ 110 1. Formal and substantive aspects................................................................................................ 110 11

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2. Scope of harmonising law.......................................................................................................... 110 3. Intensities or degrees of harmonisation..................................................................................... 110 II. Mutual recognition.......................................................................................................................... 111 III. Coordination................................................................................................................................... 111 IV. Notification of standards................................................................................................................ 111 V. Exercises........................................................................................................................................ 111 PART 5: ENFORCEMENT....................................................................................................................... 113 A. General remarks........................................................................................................................ 115 B. The actions for annulment (Arts. 263 TFEU et seq.) and for Failure to act (Arts. 265 and 266 TFEU)................................................................................................. 116 I. The action for annulment (Arts. 263 TFEU et seq.) and alternatives............................................. 116 1. Admissibility............................................................................................................................... 116 a) Reviewable act....................................................................................................................... 116 b) Standing of applicants............................................................................................................ 116 c) Time-limit............................................................................................................................... 116 2. Annulment grounds.................................................................................................................... 117 3. Finding by the CJEU.................................................................................................................. 117 4. Alternatives to the annulment procedure................................................................................... 117 II. The action for failure to act (Arts. 265 and 266 TFEU).................................................................. 117 C. The Infringement procedure (Arts. 258 TFEU Et seq.)................................................... 118 I. First round of the infringement procedure...................................................................................... 118 II. Second round of the infringement procedure................................................................................ 118 D. The preliminary ruling Procedure (Art. 267 TFEU)........................................................ 119 I. Two types of questions................................................................................................................... 119 II. National courts and tribunals......................................................................................................... 119 III. Types of preliminary rulings........................................................................................................... 119 IV. Ruling by the CJEU........................................................................................................................ 119 E. Actions for damages and for unjust enrichment....................................................... 121 I. Actions for damages and for unjust enrichment against the EU (Art. 340 TFEU)......................... 121 1. Contractual liability and internal liability..................................................................................... 121 2. Non-contractual liability of the EU.............................................................................................. 121 3. The action for unjust enrichment................................................................................................ 121 II. Non-contractual liability of the Member States (based on case law)............................................. 122 F. Exercises......................................................................................................................................... 123

PART 1: THE LEGAL FOUNDATIONS OF THE EU

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A. introduction I. “EU law” and “Community law” The present text deals with EU law, i.e. the law relating to the European Union [Chart 1/1]. The EU is a complex international organisation whose legal order was fundamentally revised through the so-called Lisbon revision in 2007/2009.1 In order to understand the EU legal system, it is helpful to know that an important part of the present EU law used to be the law of the European Community (EC; originally called “European Economic Community”, EEC), an international organisation older than, and separate from, the EU. Through the Lisbon revision, the EC was integrated into the EU and no longer exists under this name. Nevertheless, it will be apparent from this text that even after the Lisbon revision, the law of the former European Community remains important for various practical purposes. For example, numerous important decisions (“case law”) of the European Court of Justice (an institution of the EU that plays a particularly important role in the EU legal system) that remain relevant under the present law go back to the time before the Lisbon revision. Further, there is a large body of secondary law (i.e. legislation adopted by the EU institutions) that is formally based on the EC or even the EEC Treaty and that continues to exist. Also, numerous international agreements with non-Member States have formally been concluded by the EEC/EC and are still valid (with the EU now replacing the Community as a party to these agreements).

Alongside EU law post-Lisbon, there is also the law of the European Atomic Energy Community, commonly referred to as “Euratom”. Like the former European Community, Euratom predated the EU. Following the Lisbon revision, Euratom continues to exist. Euratom law is not discussed in the present materials, and neither is the law of the former European Coal and Steel Community, which also predated the EU and which expired in 2002. As a result of these developments, after the Lisbon revision the term “Community law” now relates exclusively to Euratom law.

II. EU law as a special type of international law EU law is a special type of public international law that is characterised by a number of features that set it apart from traditional public international law [Chart 1/2, Chart 1/3]. This includes notably the strong effect of EU law within the legal orders of the Member States, even in favour of individuals, and more generally a sophisticated enforcement system. Again, the special features of present EU law go back to the original Communities, in particular the EEC. The law of the EEC combined features traditionally typical to such law with features that were quite original at the time when the EEC was founded. Recognised by the European Court of Justice in the context of Community law, these special characteristics can now also be discerned in EU law.

Given that EU law is founded on international treaties, important principles of public international law apply, including most notably the obligation of the Member States to honour the obligations entered into by them under EU law [Chart 1/4]. However, as distinct from public international law, where the means to be employed in view of the fulfilment of these obligations are often left to the states, EU law prescribes specific approaches in a number of contexts [Chart 1/5, Chart 1/6]. Similar to traditional international law, EU law provides for a combination of uniformity and differentiation [Chart 1/7]. In principle, all Member States have the same obligations under EU law (uniformity). However, to a certain extent differences have developed over time. An example is provided by the so-called Schengen law, which does not apply to some Member States.2 These differences evolved over time, as a result of political developments and without a particular legal framework that would have regulated differentiation. Subsequently, specific provisions on how to adopt legislation that is not binding on all EU Member States have been inserted into the TEU. They represent a special characteristic of EU law.

1 2

See PART 1, B.III.2.c). See PART 1, B.III.2.a).

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Finally, a notable characteristic of EU law is its multi-layered nature [Chart 1/8] and the fact that the decisions of the Court of Justice of the European Union (CJEU, also European Court of Justice) play a particularly important role in the legal system of EU law (“case law system”) [Chart 1/9]. Note: these short introductory paragraphs provide but a few initial glimpses of the special nature of EU law. More detailed information can be found in later parts of this text.

III. Aim, means, specific objectives and fundamental values of the EU According to Art. 3(1) TEU, the pre-dominant aim of the EU is “to promote peace, the Union’s values and the well-being of its peoples” [Chart 1/10]. The means used by the EU in this context include the creation of an area of freedom, security and justice (AFSJ), the establishment of an internal market and of an economic and monetary union (EMU) and the Union’s relations with the wider world, including a special approach to neighbouring countries (European Neighbourhood Policy, ENP). According to Art. 2 TEU, the EU’s fundamental values include respect for human dignity, freedom, democracy, equality, the rule of law and respect for human rights, values that are common to all EU Member States and that, according to the Court of Justice, form the basis for mutual trust between the Member States [Chart 1/11]. Art. 7 TEU provides for a political mechanism in order to guarantee respect for these values.

IV. The principle of sincere cooperation between the Member States and the EU At the basis of the relationship between the Union and the Member States is the principle of sincere cooperation, as expressed in Art. 4(3) TEU [Chart 1/12]. According to this principle, the EU and the Member States are to assist each other in carrying out tasks flowing from the Treaties. The Member States are obliged to take all appropriate measures to ensure fulfilment of their obligations under EU law and to facilitate the achievement of the Union’s tasks. They must refrain from any measure, which could jeopardise the attainment of the Union’s objectives. The principle of sincere cooperation, and in particular the obligations of the Member States flowing from it, has been highly influential in the CJEU’s case law.

V. Language versions of EU law and web-based information EU law exists in the 24 languages, which are at present the official languages of the EU [Chart 1/13]. All important texts of EU law as well as the case law of the CJEU are in principle available in each of these languages. The various language versions of EU law can be found on the EU’s internet website [Chart 1/14]. This website offers a wealth of information on the EU itself (Treaties and secondary legislation, institutions, policies and so forth) as well as on its relationship with countries that do not belong to its membership (socalled third countries) and with other international organisations. The address of the multilingual entry page is http://europa.eu.

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B. THE DEVELOPMENT OF THE EUROPEAN UNION I. European integration against the global background Under the influence of repeated and devastating wars in Europe, in particular between Germany and France, renewed efforts were made after the Second World War to bring the European countries closer to each other in order to prevent further wars and to guarantee stability and the welfare of the people [Chart 2/1]. These specifically European efforts have to be seen against the broader background of the development of international cooperation on the global level. After the Second World War, a number of important international organisations were founded, including in particular the UN (United Nations) in the political field, the GATT (General Agreement on Tariffs and Trade) and the OEEC (Organisation for European Economic Co-operation) in the economic field and the NATO (North Atlantic Treaty Organization) in the field of defence and security [Chart 2/2]. In 1945, the UN was set up as the successor to the rather unsuccessful League of Nations (which had notably not been able to prevent the Second World War). Global trade saw the setting up of the GATT in 1947 (which today is part of the larger World Trade Organization, WTO). In 1948, the OEEC was set up as the organisational framework for the post-war aid of the USA to Europe (Marshall Plan). Later, it became what is today the broader OECD (Organisation for Economic Co-operation and Development). On the military plane, the NATO was founded in 1949.

II. Early steps of integration in Europe: the European Communities In Europe, some countries aimed at a strong form of integration. This was attempted in three areas, namely politics, defence and economy [Chart 2/2, Chart 2/3]. However, in the 1950s only the latter succeeded. In the field of economic integration, suggestions made by eminent politicians such as Jean Monnet, Robert Schuman and Paul-Henri Spaak led to tangible results. On 9 May 1950, the French foreign minister, Robert Schuman, presented the so-called Schuman Plan, a proposal for the creation of a single authority to control the production of coal and steel (the industries necessary for warfare at the time) of France and Germany, through an international organisation with membership open to other European countries. The author of the content of this plan was Jean Monnet, then head of France’s General Planning Commission. In 1956, the Intergovernmental Committee on European Integration headed by the Belgian statesman, Paul-Henri Spaak, presented the so-called Spaak Report. The report contained an action plan for bringing the nuclear industry under one supervisory authority and for the creation of a general common market.

Based on these plans, three European Communities were established, namely the European Coal and Steel Community (ECSC) in 1951, the European Atomic Energy Community (commonly referred to as “Euratom”) in 1957, and the European Economic Community (EEC), as it was called at the time, also in 1957 [Chart 2/4]. (The EEC was later renamed “European Community”, EC).3 These three European Communities represented the beginning of what would later become the European Union [Chart 2/5]. Of the three Communities, the third Community (i.e. the EEC) was the most important because it covered a much broader field than the others (namely economic integration in general, rather than integration in certain specific fields only). As it could not regulate everything on the Treaty level, the EEC Treaty was set up as a mere “ traité-cadre” (French for “framework treaty”, or: “traité-fondation”, i.e. “foundation treaty”; or “ traité-constitution”, i.e. “constitutional treaty”). In addition to the Treaty (which made up the main part of so-called primary law, that is, essentially law directly made by the Member States), there was a need for legislation on a lower level (secondary law, that is, law made by the Community institutions). Accordingly, the law of this third Community was much more than just the Treaty. As such, it laid the foundations for the multi-layered system of the present EU law.

See PART 1, B.III.1.

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The founding countries of the three Communities were France, Germany, Italy, Belgium, the Netherlands and Luxembourg. Through this, they achieved a particularly strong form of economic integration whereby considerable powers were transferred to the Communities, where Community law was of immediate relevance to individuals (natural persons as well as companies and firms) and where the system of enforcement was very well developed (the so-called supranational approach) [Chart 2/6]. Other European countries at the time opted for initiatives that went less far (the so-called intergovernmental approach, i.e. mere cooperation of the governments of the participating states). This led to the founding of the EFTA (European Free Trade Association) and, much later, to the setting up of the EEA (European Economic Area). The EFTA, founded in 1960, represented a looser form of economic integration than the Communities with their common markets. With time, many EFTA countries became Community (and later EU) Member States. Following a major revision in 2001, the EFTA Agreement is now much broader in terms of substance matter than it was when it was originally set up. It remains firmly intergovernmental. The EEA comprises the EU and the EFTA States with the exception of Switzerland. The EEA Agreement was signed in 1992. In terms of intensity of economic integration, the EEA is on a higher level than the EFTA but on a lower level than the Communities were and now also on a lower level than the EU is.

The intergovernmental approach is also reflected in other European organisations that were set up after the Second World War, most notably the Council of Europe and the former Western European Union (WEU) [Chart 2/3]. On the political plane, the Council of Europe was founded in 1949 in order to develop common and democratic principles in Europe. Today, it unites 47 Member States, including all Member States of the European Union. Its most important and most powerful instrument is the European Convention for the Protection of Human Rights and Fundamental Freedoms (ECHR). After having exhausted national remedies, individuals whose rights under the ECHR have been infringed can bring actions to the European Court of Human Rights (ECtHR) in Strasbourg, France. On the defence plane (military and security), the WEU was founded in 1948 as a defence treaty and revised in 1954. It ceased to exist in 2011.

As a result of this development, different European organisations reflect different approaches to integration.

III. From the Communities to the larger construct of the EU 1. The creation of the EU through the Maastricht Treaty Much later, the three European Communities were taken as the starting point for a larger construct, namely the European Union (EU) [Chart 2/5]. The EU was set up through the “Maastricht Treaty” (signed in 1992 and in force since 1 November 1993) [Chart 2/7]). At the same time, the Maastricht Treaty provided for amendments to the pre-existing Community Treaties (revision of Maastricht). In this context, the name of the third Community was changed from “European Economic Community” (EEC) to the shorter “European Community” (EC) [Chart 2/8]. The deletion of the component “economic” was intended to reflect substantive developments over the past decennia that had made this third Community much more than an enterprise of economic integration (e.g. environmental law, consumer protection and social law). At the same time, it meant that there were now three European Communities, one of which was called “the European Community”.

The EU as set up through the Maastricht Treaty was a complex international organisation. The picture often used for describing its structure following the Maastricht Treaty was a temple with three pillars [Chart 2/9]. In this metaphor, the pre-existing Communities with their separate Treaties formed the first and strongest (supranational) pillar of the EU. The metaphor was based on the third section of Art. A of the EU Treaty which stated: “The Union shall be founded on the European Communities, supplemented by the policies and forms of cooperation established by this Treaty

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[…].” Note that under the Maastricht Treaty, the EU did not replace the Communities. Rather, the Communities continued to exist alongside the EU. They remained international organisations in their own right.

To the pre-existing Communities, which formed the EU’s first pillar, two new fields of action were added, namely “Common Foreign and Security Policy” (CFSP; second pillar) and “Cooperation in the Fields of Justice and Home Affairs” (JHA; third pillar; this pillar later changed its name). The instruments and decision-making procedures used in the second and third pillars differed from those used in the first pillar.4 More generally, in terms of intensity of integration the second and the third pillars were much weaker (intergovernmental approach) than the first pillar (supranational approach). The pillar structure of the Union as based on the Maastricht Treaty was reflected in the structure of the EU Treaty [Chart 2/10]. First pillar: Titles II, III and IV of the EU Treaty, containing changes to the Community Treaties. (It should be remembered that each Community had its own treaty). Second pillar: Title V in the EU Treaty, containing provisions on the Common Foreign and Security Policy. Third pillar: Title VI in the EU Treaty, containing provisions on Justice and Home Affairs. The common provisions (roof) could be found in Titles I and VII. Those titles described the larger framework of the Union (e.g. the idea behind the EU, its objectives and foundations, amendment of the Treaty, accession of new Member States and languages of EU law).

The EU as created through the Maastricht Treaty united elements of the original three strands in which integration was attempted in the 1950s, namely economy (first pillar), defence/security (second pillar) and politics (third pillar as well as the overall structure of the EU). Further, the EU’s top political institution, namely the European Council (Art. 15 TEU), has informal origins that date back to the time when the founding of a European Political Community had failed [Chart 2/3].

2. Subsequent changes in the structure of the EU a) The EU after the Amsterdam Treaty The structure of the EU changed somewhat with the Amsterdam revision (“Amsterdam Treaty”, signed in 1997 and in force since 1 May 1999) [Chart 2/11]. Through this revision, part of the original third pillar of the EU was moved into its first pillar (more specifically: into the EC Treaty, where it became Title IV of Part Three) [Chart 2/12]. This caused the first pillar to grow and the third pillar to shrink. As a result of this operation, the reduced third pillar was renamed as “Police and Judicial Cooperation in Criminal Matters” (PJCCM). The name of the second pillar remained the same, namely “Common Foreign and Security Policy”. Further, the Amsterdam revision introduced a new title on “closer cooperation” into the EU Treaty [Chart 2/13, Chart 1/7]. “Closer cooperation” gives the Member States the option of pursuing integration at “different speeds”. This means that not all Member States necessarily share the same EU law; there may be differences. This is a fact that developed historically even before provisions on closer cooperation were introduced into the Treaty. Examples are the common currency of the EU, the euro (which is not shared by all Member States),5 the so-called Schengen law on the abolition of border controls for persons (not all Member States are part of the Schengen area), and the former Social Agreement which was not binding on the UK and which led to the adoption of certain social law measures (these measures subsequently became binding on the UK).6

Again, the pillar structure of the EU as based on the Amsterdam Treaty was reflected in the structure of the EU Treaty [Chart 2/13].

PART 1, D.III.1.a). See PART 1, C.IV.1. 6 See PART 3, A.II. 4 5

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As compared to the previous structure, there were two differences: first, the common part (roof) included a new title, namely Title VII on closer cooperation. Second, the third pillar had a new name, namely “Police and Judicial Cooperation on Criminal Matters” (rather than the previous “Justice and Home Affairs”).

b) A failed attempt: the Constitutional Treaty In 2001, the so-called Laeken Declaration (officially “Declaration on the Future of the European Union”) committed the EU to becoming more democratic, transparent and effective. In this context, the Member States decided to revise the Treaties in order to simplify the complex structure of the EU and to adapt the institutions and the workings of the EU to the enlarged Union. A draft text for the Constitutional Treaty was prepared by the so-called Convention, a body specially designed to consider the next Treaty revision [Chart 2/15]. In its draft text, the Convention suggested far-reaching changes notably in the structure of the EU and the EC, namely the merging of the EU and of the EC, as well as the merging of the two Treaties into a single Treaty. The draft Treaty also provided for constitutional symbols such as a European flag, anthem and motto. It also suggested that certain legislative acts of the EU should be called “European laws”. The Member States signed the Constitutional Treaty in 2004 in Rome. However, the Treaty did not enter into force, due in particular to negative popular votes (more specifically: advisory referenda) in France and in the Netherlands in 2005.

c) The EU after the Lisbon Treaty To date the latest fundamental revision of the structure of the Communities and the EU is the Lisbon revision (“Lisbon Treaty”, signed in 2007 and in force since 1 December 2009) [Chart 2/16]. After the failure of the Constitutional Treaty, the Member States signed a new revising treaty in Lisbon, which, in terms of its content, is largely based on the Constitutional Treaty (minus the elements pointing to a “constitution”). The Lisbon Treaty contains the changes to the pre-existing Treaties (both the EU Treaty and the Community Treaties, i.e. the EC Treaty and the Euratom Treaty) brought about by the Lisbon revision [Chart 2/17]. The Lisbon Treaty transformed the fundamental documents of the EU [Chart 2/18]. First, it fundamentally revised the EU Treaty (TEU). Second, it revised and renamed the EC Treaty, which became the Treaty on the Functioning of the European Union (TFEU). Third, it transformed the Charter of Fundamental Rights (CFR) – a document proclaimed by the Member States in 20007 – into a binding instrument and gave it the same legal value as the Treaties. These changes have had consequences for the structure of the EU. Most notably, through the Lisbon revision, the EC has been incorporated into the EU and therefore has ceased to exist under this name. The only remaining Community, namely Euratom, continues to exist alongside the EU, though in a more detached form (i.e. less closely linked to the EU than was formerly the case). In its revised form, the TEU no longer reflects a pillar structure in the way that it used to do it before the Lisbon revision. Except for the provisions on the Common Foreign and Security Policy, the TEU no longer contains provisions on specific areas of activities but focuses instead on constitutional issues [Chart 2/19]. The detailed provisions on the institutions, substantive law and other provisions on the various areas of activity of the EU, including the provisions on judicial cooperation in criminal matters and on police cooperation, can be found in the TFEU [Chart 2/20]. The rules on decision-making in the field of Common Foreign and Security Policy are somewhat different from the other fields. In that sense, the former second pillar of the EU has kept its intergovernmental nature. In contrast, the former third pillar of the EU has been adapted to follow the mechanisms and rules of what used to be Community law.

As a result of these far-reaching changes, the traditional metaphor of a temple with three pillars no longer appears appropriate for the European Union. The metaphor now suggested instead is that of a large planet around which Euratom circles like a satellite [Chart 2/21, Chart 2/22]. In this metaphor, the three fundamental texts of the EU, namely the TEU, the TFEU and the CFR, can be compared to the core, the mantle and the crust of the planet [Chart 2/23]. 7

See PART 2, A.III.1.a)i.