7 T H Law of the European Union is on the cutting edge of developments in this E D I T I o n G dynamic area of the law. It explores the EU’s constitutional and administrative law, as well as the major areas of substantive EU law. Topics are extensively illustrated with decisions from the European Court of POWERED BY Justice and Court of First Instance, encouraging students to consider real JoHn FAIRHURST world applications of the principles of law. law of the Al chapters in the text have been fuly updated and revised for the seventh european union edition in accordance with the law as at 31st March 2009. The text includes commentary on the status of the Treaty of Lisbon, following Ireland’s initial rejection of the Treaty. Throughout this new edition there are detailed explanations of the anticipated changes to be made to the EC Treaty (to be renamed the Treaty on the Functioning of the European Union) and the Treaty on the European Union, once the Treaty of Lisbon is ratifed and comes into force. In addition the text offers a wealth of study support that includes: • Aims and objectives at the start of each chapter that help to focus learning • Clearly distinguished case summaries to enable students to recognise the key cases quickly and differentiate them from surrounding commentary www.mylawchamber.co.uk/fairhurst • Chapter summaries that highlight the main points covered in each This text is supported by a mylawchamber chapter, cementing understanding website which includes: • Further reading lists at the end of each chapter that direct students to for students: regular case and legislation subject-specifc resources to enrich understanding updates, web links, interactive self-test • Easy to read, two-colour text design with tabbed glossary and pedagogical questions, practice assessment questions, an features for quick reference online glossary and fashcards for key terms. • Marginal cross-references that help students understand how the material for lecturers: a testbank of multiple-choice fts together questions that can be used to assess students’ progress. G About the Author powered by john fairhurst BA PgDip MPhil Solicitor is Head of the Law School at Visit www.pearsoned.co.uk/casenavigator Birmingham City University. He was previously an Associate Dean and Head for unique online support that helps improve of Law at Anglia Ruskin University, a Jean Monnet Tutor in EU Law and cUansieo nr eLaadwin. g and analysis skills in European Course Director of the Diploma of Law (CPE) programme at the University The LexisNexis element of Case Navigator is only of Huddersfeld. a LveaxilsaNbelex itso Bthuotser wohrot hcsu rsrernvticlye su. bscribe to JoHn FAIRHURST law of the european union www.pearson-books.com Cover © Benelux/zefa/Corbis CVR_FAIR9086_07_SE_CVR.indd 1 16/6/09 08:48:34 I S S I E V E V A A N N 7TH EDITIon law of the FAIRHURST european union 7TH EDITIon R R O O T T C C A A A A A01_FAIR9086_07_SE_FM.QXD 7/31/09 2:05 PM Page i Law of the European Union A01_FAIR9086_07_SE_FM.QXD 7/31/09 2:05 PM Page ii =fle[Xk`feJkl[`\j`eCXnJ\i`\j Ni`kk\en`k_c\Xie`e^`ed`e[#k_\j\k\okjXccfnjkl[\ekjkf^X`eXjfc`[ le[\ijkXe[`e^f]k_\cXn%<XZ_Yffbgi\j\ekjk_\jlYa\ZkZc\XicpXe[ XZZ\jj`Ycp]fi\]]\Zk`m\Xe[jXk`j]p`e^jkl[p% K_\=fle[Xk`feJkl[`\j`eCXnJ\i`\j`jjlggfik\[YpdpcXnZ_XdY\in_`Z_ _fjkji\^lcXilg[Xk\jkfk_\cXnXe[XiXe^\f]i\jfliZ\j]ifddlck`gc\$Z_f`Z\ hl\jk`fej#n\Yc`ebj#ÕXj_ZXi[jXe[Xefec`e\^cfjjXip]fijkl[\ekjkflj\ k_ifl^_flkk_\`iZflij\% 8mX`cXYc\]ifdXcc^ff[Yffbj_fgj fifi[\ifec`e\Xk1 nnn%g\Xijfe\[%Zf%lb&cXn A01_FAIR9086_07_SE_FM.QXD 7/31/09 2:05 PM Page iii Seventh Edition Law of the European Union JOHN FAIRHURST Birmingham City University A01_FAIR9086_07_SE_FM.QXD 10/9/09 7:10 AM Page iv Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world Visit us on the World Wide Web at: www.pearsoned.co.uk First published 1996 Second edition published under the Financial Times/Pitman Publishing imprint in 1999 Third edition 2002 Fourth edition 2003 Fifth edition 2006 Sixth edition 2007 Seventh edition 2010 © Pearson Professional Limited 1996 © Pearson Education Limited 1999, 2010 The right of John Fairhurst to be identified as author of this work has been asserted by him in accordance with the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without either the prior written permission of the publisher or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London EC1N 8TS. Crown Copyright material is reproduced with the permission of the Controller of HMSO and the Queen’s Printer for Scotland. Law Commission Reports are reproduced under the terms of the Click-Use Licence. ISBN 978-1-4058-9908-6 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data 10 9 8 7 6 5 4 3 2 1 13 12 11 10 09 Typeset in 9/12pt Stone Serif by 35 Printed by Ashford Colour Press Ltd, Gosport, Hants. The publisher’s policy is to use paper manufactured from sustainable forests. A01_FAIR9086_07_SE_FM.QXD 7/31/09 2:05 PM Page v To my mum, Tess 1929–2009 A01_FAIR9086_07_SE_FM.QXD 7/31/09 2:05 PM Page vi A01_FAIR9086_07_SE_FM.QXD 7/31/09 2:05 PM Page vii Brief contents Preface to the seventh edition xviii Preface to the first edition xx Guided tour xxii Table of cases before the European Court of Justice and the Court of First Instance (numerical) xxv Table of cases before the European Court of Justice and the Court of First Instance (alphabetical) xlv Table of cases before the European Court of Human Rights lxv Table of cases before national courts lxvi Table of European Community Decisions lxviii Table of European Community Treaties lxix Table of equivalences referred to in Article 12 of the Treaty of Amsterdam (pre-Treaty of Lisbon) lxxxiv Tables of equivalences as referred to in Article 5 of the Treaty of Lisbon cxvii Table of other Treaties cxxiii Table of European Community Regulations cxxv Table of European Community Directives cxxviii Rules of Procedure of the European Court of Justice cxxxii Table of Statutes cxxxiii Table of Statutory Instruments cxxxiv List of abbreviations cxxxvi Part 1 Constitutional and administrative law of the European Communities and the European Union 1 1 An introduction to the European Communities and the European Union 3 2 Sources of Community law 55 3 Community institutions and related bodies 86 4 The decision-making process 132 5 The European Court of Justice and the Court of First Instance 162 6 Preliminary ruling jurisdiction of the Court of Justice (Article 234 EC Treaty; Article 267 TFEU, post-ToL) 189 7 Direct actions against Member States (Articles 226–228 EC Treaty; Articles 258–260 TFEU, post-ToL) 214 8 Judicial review of acts of Community institutions 238 vii A01_FAIR9086_07_SE_FM.QXD 7/31/09 2:05 PM Page viii BRIEF CONTENTS 9 Principles of supremacy, direct effect, indirect effect and state liability 279 10 Applying Community law in the English courts and adapting English remedies to the requirements of Community law 319 Part 2 The free movement of persons and services, and rights of establishment 327 11 European Union citizenship and free movement rights 329 12 Free movement of workers 372 13 Freedom of establishment and the provision and receipt of services 429 14 Social security 496 15 Limitations on the free movement of persons 519 16 Free movement rights in the United Kingdom 540 Part 3 The free movement of goods 569 17 Customs duties and internal taxation 571 18 The elimination of quantitative restrictions and measures having an equivalent effect 602 Part 4 Community competition law 665 19 State monopolies and state aid 667 20 Cartels and restrictive agreements: Article 81 EC Treaty (Article 101 TFEU, post-ToL) 689 21 Abuse of a dominant position and mergers: Article 82 EC Treaty (Article 102 TFEU, post-ToL) 720 22 Enforcement of Community competition law: powers and procedures 741 Glossary 788 Index 808 viii A01_FAIR9086_07_SE_FM.QXD 7/31/09 2:05 PM Page ix Contents Preface to the seventh edition xviii Preface to the first edition xx Guided tour xxii Table of cases before the European Court of Justice and the Court of First Instance (numerical) xxv Table of cases before the European Court of Justice and the Court of First Instance (alphabetical) xlv Table of cases before the European Court of Human Rights lxv Table of cases before national courts lxvi Table of European Community Decisions lxviii Table of European Community Treaties lxix Table of equivalences referred to in Article 12 of the Treaty of Amsterdam (pre-Treaty of Lisbon) lxxxiv Table of equivalences as referred to in Article 5 of the Treaty of Lisbon xcvii Table of other Treaties cxxiii Table of European Community Regulations cxxv Table of European Community Directives cxxviii Rules of Procedure of the European Court of Justice cxxxii Table of Statutes cxxxiii Table of Statutory Instruments cxxxiv List of abbreviations cxxxvi Part 1 Constitutional and administrative law of the European Communities and the European Union 1 1 An introduction to the European Communities and the European Union 3 Aims and objectives 3 The post-war years 3 23 July 1952: the European Coal and Steel Community 5 1 July 1958: the European Economic Community and the European Atomic Energy Community 6 8 April 1965: the merger of the institutions 8 1 July 1973: enlargement 8 1 January 1981: enlargement 9 1 January 1986: enlargement 9 1 July 1987: the Single European Act 9 ix