In prior class, we discussed the TEU and it's more principle approach to

fundamental values.

In this class, we shall move to focus to the Treaty on the Functioning of the
European Union, that's TFEU.

A quick glance at the table of contents of the TFEU indicates a complex

agreement. It contains seven parts, each divided into separate titles, chapters, and
sections in all together 358 articles. If the Treaty of the European Union was
supposed to be the constitution, the functional treaty is more operative outlining
detailed provisions and especially focusing on the process of developing the
European collaboration. The preamble is focused on practical aspects in an ever
closer union among the peoples of Europe. It clarifies the need to ensure economic
and social progress by common actions and calls for the removal of existing
barriers. Concerted actions shall guarantee a common commercial policy, steady
expansion, balanced trade and fair competition.

Part 1 and 2 deals with the principles in Articles 1-25.

The fundamental principles have already been referred to in the prior class
regarding the Treaty of the European Union. The functional treaty addresses
categories under areas of Union competence, as well as general aims, including
equality between men and women, a high level of employment, adequate social
protection, education, training, and human health.

Environmental and consumer protection shall be integrated into all Union policies
and activities.

Likewise, the fundamental principle of non-discrimination, referred to in

Article 18.

Part 2 also makes every person holding the nationality of a member state a citizen
of the Union in addition to their national citizenship.

Part 3 on the Union policies and international actions is by far the longest and most
detailed section in the functional treaty. It contains, as you can see, 24 subtitles,
several of them divided into a number of chapters. In total, it covers 171 articles.
Articles 26-197.
The internal market is defined as an area without internal frontiers with free
movement of goods, persons, services, and capital. Restrictions may only be
imposed on such grounds as public morality, public policy, public security, the
protection of health and life, industrial and commercial property, or for the
exercise of official authority. Such restrictions must not, however, constitute a
means of arbitrary discrimination or a disguised restriction on trade between the
member states.

Let me go through the different freedoms. First with respect to goods. Customs on
third country goods are established by unfolded Union and collected by the
member states. Custom duties or quantitative restrictions on internal trade and
charges or measures having equivalent effect are prohibited. Articles 38-44 extend
the internal market to agriculture and fishery, thereby creating a balance
between more industrial lowest and farming areas.

Article 45 secures free movement of persons and abolition of any

discrimination based on nationality. Workers are entitled to accept offers of
employment and to move freely within the territory of the member states.
Similarly, restrictions on the free movement of establishment is prohibited. Both
individuals and companies are free to set up agencies, branches, and subsidiaries.
They shall be treated in the same way as nationals of the relevant member state.

Article 56 provides that the restrictions on freedom to provide services for

remuneration shall be prohibited of nationals of other member states.

According to Article 63, all restrictions on the movement of capital are

prohibited. The member states may prevent infringements of national law in the
field of taxation and the supervision of financial institutions.

Title 5, Article 67-89, deals with an area of freedom, security, and justice
which includes policies on border checks, asylum and immigration, judicial
cooperation in civil matters, and police cooperation.

European business law are the rules on judicial cooperation. The Union shall
develop cooperation in civil matters having cross-border implications based on the
principle of mutual recognition.
If the four freedoms in the internal market shall be secured and especially the free
flow of goods, the means must be secured through a common transport policy.

In Articles 90-100, with common rules and measures to improve transport

safety. Discrimination in the form of state subsidies or carriers charging
differentiated non-reasonable, non-competitive rates, and imposing different
conditions are prohibited. Special rules apply for sea and air transport.

Articles 101-109.

Extraordinary importance for the industry and commerce are the rules on
competition imposed in Article 101. They have direct effect and are strictly
enforced sometimes with severe penalties for individual companies. Article 101
prohibits all agreements between undertakings which may affect trade between
member states and distorts competition. It covers, for example, the fixing of prices,
the limiting of production and technical development, market sharing,
discrimination, and tying activities. In addition to being prohibited and sanctions,
such agreements are also null and void. On certain conditions, unlawful
agreements may be exempted individually or in group.

Article 102 prohibits any abuse of a dominant position, insofar as it may affect
trade between member states.

The examples of abuse are similar to the enumeration in Article 101. There
are no exception possibilities for abusive behavior. On the contrary, the
dominant company has a special responsibility to compete on the merits.

The commission in close collaboration with National Competition Agency is the

primary guardian of the competitive climate. An extensive regulatory and case law
development have provided more concrete examples of unlawful activities.

Under Article 106, the competition rules are also applied to public
undertakings. The application must not obstruct the performance of the
particular task assigned to these public undertakings.

Articles 107-109 deal with state aid which must not distort or threaten to
distort competition by favoring certain undertakings, unless there are
primarily non-economic reasons for such aid.
Tax and harmonization of laws are dealt with under the Articles 110-113. It is
primarily a national matter. However, certain common rules are required to
avoid that taxation is used to distort trade and discriminate non-nationals.

The union furthermore has competence to its use secondary legislation in areas
defined by the treaties.

Article 114 stipulates that the commission in its proposals for approximation
of legislation must base new proposals on a high level of health, safety,
environment and consumer protection.

Furthermore, according to article 115, the council shall issue directives for
harmonization of national laws if they affect the functioning of the internal
market. The juice of detailed directors have become a preferred way to promote
further integration. A directive which has not been implemented on the national
level, may after the implementation time has elapsed create rights for individuals.

The new Article 118 fills a lacuna in the treaties by referring to intellectual
property rights and the need for common rules and organizations.

That TFEU also contains an elaborated chapter Article 119-144 on the common
economic and monetary policy, ensuring that economic activities including
budgetary discipline, and depreciation of currency will not distort the
conditions in the union. It includes stipulations about the Euro, and defines
exchange rate policy with the primary objective to maintain price stability and to
support an open market economy with free competition. Stable prices shall be
complemented which sound public finances, and monetary conditions, and a
suitable balance of payment. The rules on employment, social policy, the social
fund, and education complements the rules of free movement of persons. Because
union shall contribute to a high level of employment by encouraging cooperation
between member-states and by supporting their actions.

According to Article 145, the party shall develop a coordinated strategy for
employment. This includes under Article 153, the working environment and
protection of work's health and safety, the working conditions, social
protection, collective defense of interest. The chapter also promotes equality
between men and women with regard to labor market opportunities, and treatment
at work.

In addition, Article 157 stipulates equal pay for male and female workers for
equal work or work of equal value. In order to demonstrate that EU collaboration
is more than a mere economic collaboration, a number of provisioned wells on
other issues of specific importance are perhaps the rules on public health and
consumer protection.

According to Article 168, a high level of human health protection shall be

ensured in all union policies. Likewise, in order to promote the interests of
consumers and to ensure a high level of consumer protection, Article 169 protects
the health and safety and economic interests of consumers.

According to Article 12 of the functional treaty, consumer protection shall be

taking into account in defining and implementing other union policies. It was
clear to the treaty drafters that the new inventions are driving economic and social
change. In its long-range plans, the union constantly suggests that the union shall
be more competitive in disrespect than any other region.

Article 179 therefore requires that the union must strengthen its scientific and
technological basis. A European research area is created in which researchers,
scientific knowledge and technology may circulate freely.

The union environments to the policy Articles 191-193, contribute to protecting

and improving the quality of the environment, protecting human health, and
prudent and rational utilization of natural resources. It addresses global
environmental problems and especially combating climate change. The
environmental policy aims at a high level of protection based on a couple of very
important principles. First of all, the precautionary principle. The principle of
preventive action, and that environmental damage should be rectified at the
source, and finally, that the polluter pays.

As established by Article 11 of the functional treaty, environmental

requirements must be integrated into all union policies and activities with a
view to promoting sustainable development.
.

1. Question 1 Name the two current treaties of the EU (Check all that apply) 1
point TFEU TEU GATT TEUL TFU

2. Question 2 What was one of the main features of the Treaty of Maastricht? 1
point The Court of Justice of the EU was established. The name European
Economic Community was changed to the European Union. The Charter of
Fundamental Rights was adopted. It established a European Constitution.

3. Question 3 By which treaty did the Charter of Fundamental rights become

binding? 1 point Treaty of Maastricht Treaty of Amsterdam Treaty of Rome
Lisbon Treaty Treaty of Nice

4. Question 4 Which of the following statements are true? (Check all that apply) 1
point The European Council sets out overall guidelines for EU policies, while the
Council has legislative functions. The European Council and the Council are
different names for the same institution. The European Council consists of Heads
of States or Governments. The Council is made up of ministers, such as the
ministers of agriculture, the foreign ministers, etc.

5. Question 5 Which institution elects the President of the European Commission?

1 point The European Council. The Court of Auditors. The European Commission.
The Council. The European Parliament.

6. Question 6 What are some of the functions and roles of the European
Commission? (Check all that apply) 1 point It sets out general guidelines for EU
policies. It proposes new Legislation. It oversees the practice of the other
institutions of the EU, such as the Council. It acts as the “Guardian of the
Treaties”.

7. Question 7 What is the role of the Advocate General? 1 point To provide advice
to the Court in the form of an opinion. It has the casting vote when the court rules.
It acts as a defense attorney for individuals who have brought cases before the
court.

8. Question 8 What happens if a country withdrawing from the European Union

has not been able to agree on the terms of withdrawal within the two year period
provided by the TEU? 1 point The Country will automatically be included in the
existing EEA collaboration. The Country remains member and a new exit
application procedure could be restarted. If the period is not mutually prolonged
the country is excluded from all EU collaboration.

9. Question 9 Which principles are covered by the TFEU environmental policy? 1

point “The precautionary principle” “The principles of preventive action” “The
principle that environmental damage should be rectified at source” “The polluter
pays principle”

10. Question 10 The environmental chapter requires that environmental

requirements must be integrated into all Union policies and activities, with a view
to promoting sustainable development. What other stipulations in the Treaty have
explicitly been given such broad impact? 1 point Competition policy Human health
protection Employment policy Consumer protection