Economic and labor rights in the European Union after Lisbon: an institutional approach

• Author: Konstantinos Margaritis
• Position: National and Kapodistrian University of Athens, Greece
• Pages: 202-218

Economic and labor rights in the European Union after Lisbon:

an institutional approach

PhD Student Konstantinos MARGARITIS

1

Abstract

Economic and labor rights belong to the cor e of business action, since they

constitute the in stitutional framework for a ctors involved in business, employers a nd

workers. Since the European integration is progr essing, we may speak of a Euro pean

environment for business, a common market in Eur opean lega l terms, which became the

main a im for the Communities since 1957. At the end of 2009, with the enforcement of the

Lisbon Trea ty amendments, importa nt cha nges were br ought in the fundamental rights

protection in EU, ma inly with the enactment of the EU Charter of Fundamental Rights. For

a better understa nding of the framework of eco nomic a nd labor rights in EU, the

traditiona l economic freedoms and provisions of the Char ter will be examined in this paper

in order to draw conclusions on the level of protection of such rig hts and the modifications

that the Lisbon Trea ty have br ought in EU legal order with reference to economic and

labor r ights.

Keywords: economic freedoms, labor rights, Lisbon Trea ty, opt-out protocol.

JEL Classification: K31, K33

I. Introduction

Beyond dispute, the establishment of the European Economic Community

(EEC) in 1957 constituted an innovative procedure; based to a large extent on

principles of economic integration and development though. The Treaty of Rome

can be understood as the institutional framework for economical and monetary

union with the establishment of a common market to be the far reaching aim. This

can be easily proved by the grammatical structure of article 2 EEC Treaty, where

the economic growth and stability as well as the rise of living standards were

demonstrated as main targets of the Community.

In that sense, every progress towards European integration could be seen

growing of the common market in Europe. The traditional economic freedoms

guaranteed since the establishment of the EEC assisted in that target by setting the

framework for liberalization of the basic economic activities which refer to goods,

workers, services and capital. Beyond this perspective, the growing activities of the

Union triggered the dialogue for the creation of a catalogue of rights within the EU

legal order, interconnected to the Union’s main characteristics. Under this

approach, the EU Charter of Fundamental Rights was created in 2000; rights of

economic nature and labor rights related to enterprises are also included therein.

After the amendments forwarded with the Treaty of Lisbon, the Charter gained

1 Konstantinos Margaritis - National and Kapodistrian University of Athens, Greece,

konstantinos_margaritis@yahoo.com

Juridical Tribune Volume 3, Issue 2, December 2013

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legal value of EU primary law; according to article 6, par. 1 Treaty on European

Union (TEU), the Charter shall have the same legal value as the Treaties.

The aim of this paper is to critically present the current situation with

reference to economic and labor rights in the EU after the Lisbon Treaty. This

presentation will be based on two pillars: the economic freedoms, predominately

found in the Treaties and the rights included in the EU Charter of Fundamental

Rights. The analysis contributes to the better understanding of the complete

institutional framework of economic and labor rights protection in EU.

II. The traditional economic freedoms

2

Since the establishment of the EEC the four traditional economic freedoms

have been the main tool for achieving the aim of common market in Europe.

Therefore their presence on the Treaties after the Lisbon amendment is not a

surprise, but most a confirmation of the Union’s main function. Although this

approach implies a less favorable environment for fundamental rights, a general

framework of fundamental rights protection, basically economic rights, could be

observed within the concept of Community freedoms, which emanated from them

and as an inextricable part, completed their implementation.

Title II of Part 3 of the Treaty on the Functioning of the European Union

(TFEU) refers to the free movement of goods. It is explicitly stated the

establishment of a custom union and the prohibition between Member States of

customs duties on imports and exports and of all charges having equivalent effect

as well as the adoption of a common customs tariff in their relations with third

countries. From the very beginning, the concept of “goods” was delineated in

various cases which ruled that everything valuated in money that can be object of

commercial transactions could falls into the concept of “goods”.3

In addition, custom duties of fiscal nature are also prohibited. This implies

every tax burden in any way related to the free movement of goods. This burden

does not have to be necessarily characterized directly as “charge” but also burdens

that substantially have equivalent effect to charges are not in compliance with

Union law. The Court of Justice constantly prohibited every form of tax charges

related to issues of free movement of goods in Community member states.4 Finally,

under articles 34 and 35 TFEU, all quantitative restrictions on imports and exports

are generally prohibited between member states, unless there is a reason of public

morality, public policy or public security, protection of health and life of humans,

animals or plants, protection of national treasures possessing artistic, historic or

archaeological value or protection of industrial and commercial property.

2 See also on the issue Konstantinos Margaritis, Funda mental Rights in the EEC Trea ty a nd within

Community Freedoms, “CES Working Papers”, Iasi, vol. V, 2ί13, pp. 51-65.

3 ECJ C-7/68 Commission vs. Italy [1968] ECR 423, par. 2.

4 ECJ C-24/68 Commission vs. Italy [1969] ECR 193, ECJ joint cases C-2/69 and C-3/69

Diamantarbeiders [1969] ECR 211, ECJ C-87/75 Conceria Daniele Bresciani vs. Amministrazione

Italiana delle Finanze [1976] ECR 129.