Free movement of capital and payments. Although the 1957 Treaty of Rome included free movement of capital among the foundational provisions of the European Common Market, this freedom was expressed in more ambiguous terms than the other freedoms.

The first 200 words of this essay...

David McCabe 11090596

1 Introduction:

1.1 The freedom of capital can be considered a late starter in some regard, when compared with the other freedoms which were outlined by the EC treaty. It was originally governed by Articles 67-73 EEC. Despite the free movement of capital being listed in Article 14 as one of the fundamental rights, its treatment has been far less liberal compared to the free movement of goods, services and persons. Indeed, by striking contrast to its approach to these freedoms, the ECJ ruled that the original pre-TEU capital provisions did not have direct effect1 and could therefore not be relied upon in the domestic courts. The reliance in national courts, by individuals, within domestic courts was a significant factor in the development of Community law. The capital provisions, quite apart from being cautiously drafted, therefore lacked this mechanism for development. The area was sensitive and linked to monetary policy and thus it was not until the TEU that we saw liberalisation of capital payments.

1.2 Although the 1957 Treaty of Rome included free movement of capital among the foundational provisions of the European Common Market, this freedom was expressed in more ambiguous