Law of the European Union

Legal acts include regulations, which are automatically enforceable in all member states; directives, which typically become effective by transposition into national law; decisions on specific economic matters such as mergers or prices which are binding on the parties concerned, and non-binding recommendations and opinions.

To "save succeeding generations from the scourge of war, which twice.. brought untold sorrow to mankind",[6] the United Nations Charter was passed in 1945, and the Bretton Woods Conference set up a new system of integrated World Banking, finance and trade.

Although Stalin died in 1953 and the new general secretary Nikita Khrushchev had denounced him in 1956,[8] Soviet tanks crushed a democratic Hungarian Revolution of 1956, and repressed every other attempt of its people to win democracy and human rights.

[58] Where the different institutions cannot agree at any stage, a "Conciliation Committee" is convened, representing MEPs, ministers and the commission to try to get agreement on a joint text: if this works, it will be sent back to the Parliament and Council to approve by absolute and qualified majority.

Van Gend en Loos, a postal company, claimed that what is now TFEU article 30 prevented the Dutch Customs Authorities charging tariffs,[99] when it imported urea-formaldehyde plastics from Germany to the Netherlands.

The UK Supreme Court in R (HS2 Action Alliance Ltd) v Secretary of State for Transport devoted large parts of its judgment to criticism, in its view, an unpredictable 'teleological' mode of reasoning which, could decrease confidence in maintaining a dialogue within a plural and transnational judicial system.

[85] It added that it might not interpret the European Communities Act 1972 to abridge basic principles and understanding of constitutional functioning – in effect implying that it might decline to follow unreasonable Court of Justice judgments on important issues.

By contrast, in Deutsches Weintor eG v Land Rheinland-Pfalz wine producers claimed that a direction to stop marketing their brands as 'easily digestible' (bekömmlich) by the state food regulator (acting under EU law[154]) contravened their right to occupational and business freedom under CFREU 2000 articles 15 and 16.

[167] Increasingly, the Treaties and the Court of Justice aim to ensure free trade serves higher values such as public health, consumer protection, labour rights, fair competition, and environmental improvement.

The justifications include public morality, policy or security, "protection of health and life of humans, animals or plants", "national treasures" of "artistic, historic or archaeological value" and "industrial and commercial property".

Although many companies, including Mr Schmidberger's German undertaking, were prevented from trading, the Court of Justice reasoned that freedom of association is one of the 'fundamental pillars of a democratic society', against which the free movement of goods had to be balanced,[178] and was probably subordinate.

In Walter Rau Lebensmittelwerke v De Smedt PVBA[189] the Court of Justice found that a Belgian law requiring all margarine to be in cube shaped packages infringed article 34, and was not justified by the pursuit of consumer protection.

In contrast to product requirements or other laws that hinder market access, the Court of Justice developed a presumption that "selling arrangements" would be presumed to not fall into TFEU article 34, if they applied equally to all sellers, and affected them in the same manner in fact.

For example, in Steymann v Staatssecretaris van Justitie, a German man claimed the right to residence in the Netherlands, while he volunteered plumbing and household duties in the Bhagwan community, which provided for everyone's material needs irrespective of their contributions.

In Groener v Minister for Education[211] the Court of Justice accepted that a requirement to speak Gaelic to teach in a Dublin design college could be justified as part of the public policy of promoting the Irish language, but only if the measure was not disproportionate.

The Court of Justice, giving "horizontal" direct effect to TFEU article 45, reasoned that people from other countries would have little chance of acquiring the certificate, and because it was "impossible to submit proof of the required linguistic knowledge by any other means", the measure was disproportionate.

[248] Setting a further limit, in Cartesio Oktató és Szolgáltató bt the Court of Justice held that because corporations are created by law, they must be subject to any rules for formation that a state of incorporation wishes to impose.

In Alpine Investments BV v Minister van Financiën[262] a business that sold commodities futures (with Merrill Lynch and another banking firms) attempted to challenge a Dutch law that prohibiting cold calling customers.

[292] In Brusse v Jahani BV[293] the Court of Justice advised that clauses in a tenancy contract requiring tenants pay €25 per day were likely unfair, and would have to be entirely void without replacement, if they were not substituted with more precise mandatory terms in national legislation.

This is because the fundamental principle of labour law is that employees' unequal bargaining power justifies substitution of rules in property and contract with positive social rights so that people may earn a living to fully participate in a democratic society.

While there is no wage regulation, the Institutions for Occupational Retirement Provision Directive 2003 requires that pension benefits are protected through a national insurance fund, that information is provided to beneficiaries, and minimum standards of governance are observed.

[316] This approach, which includes affirmation of the fundamental right to strike in all democratic member states,[317] has been seen as lying in tension with some of the Court of Justice's previous case law, notably ITWF v Viking Line ABP[318] and Laval Un Partneri Ltd v Svenska Byggnadsarbetareforbundet.

[326] However, Directives do require minimum rights on company formation, capital maintenance, accounting and audit, market regulation, board neutrality in a takeover bid,[327] rules on mergers, and management of cross-border insolvency.

It requires similar authorisation procedures to have a "passport" to sell in any EU country, and transparency of financial contracts through duties to disclose material information about products being sold, including disclosure of potential conflicts of interest with clients.

[356] The prohibited categories of "abuse" are unlimited,[357] but article 102 explicitly spells out the bans on (a) "unfair purchase or selling prices", (b) "limiting production", (c) "applying dissimilar conditions to equivalent transactions", and (d) imposing unconnected "supplementary obligations" to contracts.

[371] Third, Article 101 of the TFEU prohibits cartels or collusive practices, including competitors engaging in (a) price fixing, (b) limiting production, (c) sharing markets, (d) applying dissimilar conditions to equivalent transactions, and (e) making contracts subject to unconnected obligations.

[476] There must be adequate remedies for breaches, so in Commission v United Kingdom (1992) it was held that the UK's approach of accepting undertakings from water companies to behave better in future, instead of using enforcement orders, was inadequate to comply with EU law.

In 2007, Commission v Germany held that the German Volkswagen Act 1959 violated free movement of capital in TFEU article 63 by ensuring that the state of Lower Saxony had a golden share to exercise public control over the company's governance.

[496] In rail transport, the Single European Railway Directive 2012 requires that ownership of tracks and operating companies are separated to prevent conflicts of interest and pricing, particularly to ensure that trains can run from one member state to another.

[537] Pluralism and regulation of the media, such as through 'the licensing of broadcasting, television or cinema enterprises',[538] have long been seen as essential to protect freedom of opinion and expression,[539] to ensure that citizens have a more equal voice,[540] and ultimately to support the universal 'right to take part in the government'.

The Treaty of Rome , signed in Musei Capitolini was the first international treaty that envisaged social, economic and political integration, within limited fields, for nation-states.
The EU evolved from the Coal and Steel Community of 6 member states, to a union of 28 member states in 2013. A referendum in the UK led to the UK leaving the bloc in 2020, reducing the total number of member states back to 27.
After the 2016 Brexit referendum , there were protests both for and against the UK leaving the EU and there was considerable division on how Brexit should be enacted. Britain finally left the union in 2020, where the government opted to limit the relationship to an international free trade agreement. Unlike most over member states, the UK was – as is – notably influenced by common and not civil law
The European Parliament , elected by EU citizens, makes new laws with the Commission and Council . [ 13 ] To address the EU's asserted " democratic deficit ", [ 14 ] Parliament increasingly assumed more rights in the legislative process. Proposals have not yet been adopted to allow it to initiate legislation, require the commission to be from the Parliament, and reduce the power of the Court of Justice . [ 15 ]
Eurozone participation
European Union member states
( special territories not shown)
20 in the eurozone
1 in ERM II , without an opt-out ( Bulgaria )
1 in ERM II, with an opt-out ( Denmark )
5 not in ERM II, but obliged to join the eurozone on meeting the convergence criteria ( Czech Republic , Hungary , Poland , Romania , and Sweden )
Non–EU member states
4 using the euro with a monetary agreement ( Andorra , Monaco , San Marino , and Vatican City )
2 using the euro unilaterally ( Kosovo and Montenegro )
The European Central Bank , whose Frankfurt headquarters opened in 2015, exercises executive control within its monetary policy powers. [ 28 ] It was targeted by the Blockupy movement for its role in the European debt crisis .
The Parliament is elected each five years, aspiring to the "principle of equality of its citizens". [ 38 ] Its power is limited compared to the Commission and Council .
Member states are represented by Ministers in the Council during the legislative procedures . In addition the " European Council ", which is the heads of member state governments, is meant to guide the EU's general political direction.
The Strasbourg seat of the European Parliament , which MEPs attend alongside the Brussels seats , has been criticised for its expense. The French President has previously refused to let it be shut down. [ 56 ]
The Court of Justice of the EU in Luxembourg
The EU complies with international law and the European Convention on Human Rights , so long as international law institutions, like the United Nations themselves comply with basic human rights. [ 89 ]
The European Court of Human Rights in Strasbourg , Europe's highest human rights authority, uses the Flag of Europe but is not part of the EU. All EU member states are in the European Convention , and the EU treaties require it to join, but the Court of Justice has delayed. [ 94 ]
The Van Gend en Loos case first allowed EU citizens to claim rights based on EU law. Despite the influential opinions of three Advocate Generals , [ 102 ] and major exceptions, Directives are still thought not to create direct rights among private parties.
Courts around the EU, like the Federal Administrative Court of Germany , may refer questions of interpretation to the Court of Justice at any time. Some member states are more active than others in doing so. [ 120 ]
Plaumann & Co v Commission required that claimants must be individually and directly concerned by an EU law to request judicial review . Being adversely affected by rising clementine duties was not enough. [ 139 ]
In Deutsches Weintor eG , wine growers wanted to market their wine as "easily digestible", but the food regulators thought this would mislead consumers. The Court of Justice applied the right to health in the Charter , in support of good consumer information. [ 152 ]
The EU's internal market for trade exports, like those passing through its largest Port of Rotterdam , totals over €2840 billion . [ 158 ]
In Schmidberger v Austria , protests blocked trucks for goods through the Austrian Alps on the Brenner Autobahn . The Court of Justice recognised fundamental rights take priority over free trade. [ 180 ]
In 2002, Rem Koolhaas ' proposed "barcode" Flag of Europe , caused uproar as it symbolised the EU becoming no more than a market economy for endless competitive consumption, devoid of social values and rights. It was not adopted.
In Angonese the Court of Justice gave "horizontal direct effect " to free movement, so a bank could not refuse employment to a worker who lacked a Bolzano language certificate. [ 208 ]
The Berlin Wall (1961–1989) symbolised a bordered globe, where citizens of the Soviet Union had no right to leave, and few could enter. The EU has progressively dismantled barriers to free movement, consistent with economic development.
All EU citizens have the right to child support , education, social security and other assistance in EU member states. To ensure people contribute fairly to the communities they live in, there can be qualifying periods of residence and work up to five years.
The Court of Justice in Centros Ltd held that people can establish a UK company or any other, to do business EU-wide, but must comply with proportionate requirements in the public interest, [ 243 ] such as the basic labour right to a voice at work . [ 244 ]
The European System of Central Banks , including the ECB and member state banks like the Banque de France , has been criticised for failing to fulfil its mandate. It interpreted the requirement for price stability as requiring wage suppression and growing inequality in its dealings on the European debt crisis . [ 266 ]
All enterprises and markets are governed through legal rights for consumers, employees, investors or the public , in laws of property , contract, competition, environmental law and other social and economic rights . [ 277 ] EU law harmonises a minimum floor of rights so that stakeholders can fully participate in social progress. [ 278 ]
Due to their unequal bargaining power , [ 286 ] consumers are entitled to a legislative "charter of rights" to safe and healthy products, fair terms, proper information free from misleading advertising and marketing, and rights of cancellation.
The European Social Charter 1961 art 2(1) requires "the working week to be progressively reduced" with "increase of productivity". [ 300 ] The Working Time Directive 2003 requires 28 paid holidays a year. [ 301 ] With two-day weekends , most people in the EU work two-thirds of the year or less. [ 302 ]
A majority of EU countries have legislation, such the Codetermination Act 1976 or the statute for the École normale supérieure in Paris , which protect employees' right to vote for a corporation's management. This is reflected in the Employee Involvement Directive 2001 for European Companies .
The Shareholder Rights Directive 2007 requires proxy vote instructions are followed. There EU has not yet acted, as have the Swiss , to prevent asset managers or banks like Deutsche Bank casting votes on company shares bought with other people's money , and to empower the ultimate investors. [ 331 ]
In Microsoft Corp v Commission , Microsoft was fined €497 million for tying sales of its operating system to its media player , to bankrupt competitor media players. [ 342 ] Maximum fines can reach 10% of worldwide turnover.
In Google LLC v Commission Google was fined €4.125 billion for bribing phone-makers to pre-install only its Operating System version of Android . [ 363 ]
The EU's budget in 2022 was around €170bn. Of this, €54bn subsidised agriculture , €42bn was spent on transport , building and the environment, €16bn on education and research , €13bn on welfare, €20bn on foreign and defence policy, €2bn in finance , €2bn in energy , €1.5bn in communications, and €13bn in administration.
Most European universities, such as the University of Berlin , are tuition free and funded through fair tax, after the European Social Charter and International Bill of Rights , [ 382 ] although their governance does not always give sufficient voting power to staff and alumni. [ 383 ]
Most EU countries ensure healthcare is a free public service, or provide public insurance with hospitals operating independently such as at Pitié-Salpêtrière Hospital in Paris , while a minority have more costly private provision with worse outcomes.
The European Central Bank is meant to maintain " price stability " and full employment, [ 405 ] but it has not yet used its monetary policy powers to make banks divest the fossil fuels that cause inflation, [ 406 ] to prevent escalating wage inequality, or escalating housing prices.
European nations by GDP (PPP) per capita in 2019. The EU has not yet updated its GDP measures to discount for harmful goods and services that create greenhouse gas emissions , pollution or ill health. [ 414 ]
The EU's greenhouse gas emissions are 90% from (1) energy generation from gas, oil and coal, (2) buildings with gas heating, (3) transport using oil, and (4) agriculture. By 2023, clean energy was cheaper from wind, solar or hydro, [ 430 ] but EU law has not yet required rapid clean technology adoption.
Deforestation in Europe has been driven by "biomass" being classified as "renewable", [ 440 ] even though burning wood for power pollutes the air and harms human health more than coal, and drives climate damage . [ 441 ]
The EU's wind, solar and hydro sectors remain a minority, but growing share of energy. It has not yet given a deadline to shut down all gas, oil and coal, although some member states have required fossil fuel companies to convert, such as Denmark's Ørsted .
The Common Agricultural Policy is 33% of the EU budget, but does not yet require fair wages for farm workers, that production stops using fossil fuels, or that reforestation and rewilding takes place.
Forests, like the Wörschachwald in Austria , once covered 80% of Europe, but now cover only 43.5% of EU land. There is no plan yet to reforest and rewild the continent in the agriculture budget.
The market share of Plug-in electric vehicles in Europe was merely 19% in 2021. In the Dieselgate scandal, firms such as Volkswagen , Fiat , BMW and Renault engaged in mass fraud to conceal toxic emissions, leading to thousands of deaths. [ 484 ]
High-speed rail in Europe is coordinated by the commission, and has a patchwork plan to gradually upgrade track for a faster network. [ 491 ]
Transport and buildings are the EU's two greatest internal sources of fossil fuel use, yet there is no legislative end to gas heating , or and end to polluting motors until 2035, or 2030 in some member states.
The new internet backbone is made from optical fibre networks, meaning much faster internet than old copper cables. The EU's pledge is at least 100 Mbps internet speed to all households in 2025, and 1000 Mbps not until 2030, even though speeds 10 times this were available in 2015. [ 507 ]
Data protection is a human right, [ 513 ] and personal data cannot be processed by any enterprise except with consent or by law under the General Data Protection Regulation 2016 .
The Brexit , Cruz and Trump campaigns in 2016 took personal Facebook and other data without user's consent, built psychological profiles of everyone, and corporations and the Russian military flooded social media with ads or bots to manipulate voters. [ 542 ] EU law does not yet regulate web media spreading false news, discrimination or propaganda.