The end of 2012 will herald the twentieth anniversary of 'deadline 1992', the projected date for the completion of the EU's internal market. Since the entry into force of the Lisbon Treaty in 2009 references to '1992' have been deleted from the Treaties, and so it may be tempting to suppose, rather more than twenty years since the first contribution on the Free Movement of Goods to this section of the Quarterly,1 that this is old news. Isn't the law governing the internal market in general and the free movement of goods in particular now well settled?
Since the expiry of the deadline for the completion of the internal market at the end of 1992, the Commission has shifted its focus away from piloting an intense rule-making burst through the Community legislative system. As part of its quest to establish reliable methods for managing the internal market, the Commission is now overtly concerned to improve the quality of those adopted laws, for example by securing simplification and consolidation, and it is intent on investigating more rigorously how a closer match may be made between the relevant laws on paper and their practical application on the ground.1 In short, the Commission is focusing its energies on ensuring that the legal framework which has been adopted is treated by commercial operators and consumers in the market as a viable and trustworthy basis for an integrated market. Accordingly much of the Commission's work since the last survey of the law relating to the free movement of goods has been at first sight relatively unglamorous. It largely concerns soft law initiatives and attempts to improve administrative co-ordination designed to underpin the practice of market management, both vertically (Commission/Member State) and horizontally (Member State/Member State). This forms the core of the strategy for the internal market covering the next five years, published on 24 November 1999.2 Nonetheless, even though these initiatives might not immediately strike the lawyer accustomed to a fountain of legislative activity as worthy of close inspection, it is clearly the case that the Commission regards its medium-term mission to stabilise the management of the internal market as best pursued by a gradual approach designed to improve practical compliance.
There is a generalised perception that the European Court of Justice has adopted different approaches to the different free movement rules included in the Treaties. In particular, the free movement of goods has 'benefited', until 1993, from a wider scope of application. Contrary to what has for long constituted the standard approach to the free movement of persons, the free movement of goods was constructed as requiring more than national treatment and non-discrimination in regard to goods from other Member States. Even non-discriminatory restrictions on trade in goods could constitute a violation of Community rules if not justified as necessary and proportional to the pursuit of a legitimate public interest. The freedom to provide services has somewhat occupied a middle ground between the interpretation given to the goods and persons provisions. Following the Court's decision in Keck & Mithouard in 1993, a reversal of fortune appears to have taken place regarding the Court's approach to the different free movement provisions, with the free movement of persons and the freedom to provide services now benefiting from a more 'aggressive' interpretation in comparison with the free movement of goods.
1. From "Sunday trading" to Keck and MithouardThese Current Developments surveys have consistently been driven to consideration of the Court's attempts to fix the outer limits of Article 30 of the EC Treaty, beyond which national authorities remain exclusively competent to regulate their markets without fear of legal challenge based on Community rules governing the free movement of goods. The high-water mark of judicial interventionism came in the so-called "Sunday trading" cases where the United Kingdom was required to justify against standards recognised by Community law rules governing shop opening hours despite the fact that such rules, although inhibitive of commercial freedom, posed no demonstrable obstacle to the construction of an integrated marketing strategy for the whole territory of the Community.1 In Criminal Proceedings against Keck and Mithouard2 the Court sought to curtail the reach of Article 30. A French rule prohibiting resale at a loss was held unaffected by Article 30. The Court overruled previous decisions, probably including the pair dealing with Sunday trading, although the Court was not explicit. Its intention to refocus the law of the free movement of goods on measures hostile to market integration, rather than those merely oppressive of commercial freedom, was reflected in the formula:
As mentioned in the previous note1 the Amsterdam Treaty significantly alters the treaty structure as regards the free movement of persons. The EC treaty now has, as one of its formal activities as set out in article 3(1)(d), "measures concerning the entry and movement of persons as provided for in Title IV". The creation of a new Title IV in the EC Treaty on establishing an area of freedom, security and justice moves a corpus of subject matter2 from the inter-governmental pillar on Justice and Home Affairs to the Treaty of Rome. The aim clearly set out is to establish, within five years, all the measures necessary to create "an area without frontiers" in accordance with Article 143 together with "flanking measures with respect to external board of controls of asylum and immigration" as well as "measures to prevent and combat crime in accordance with the provisions of Article 31 (e) of the Treaty on European Union".4 Co-operation between the Member States is also to be strengthened and encouraged5 as well as measures in the field of police and judicial co-operation in criminal matters though the latter is in accordance with the provisions of the Treaty on the European Union.6
The Surveys of the law of the free movement of goods carried in the Quarterly since 1989 have followed a largely consistent pattern. The Court's case law interpreting the nature and purpose of Article 28's legislative institutions. The readier the Court is to treat national measures as barriers to trade, the deeper the incursion of EC law into national regulatory autonomy. And vice versa. The Wider the scope allowed to the possibility to justify barriers to trade, the more room for manoeuvre is handed back to national regulatory autonomy—and the more weight is placed on the process of legislative harmonization or, increasingly, other forms of policy coordination at EC level as the way to advance integration. And vice versa. All these trends are in view in the period covered by this survey. The complex institutional rhythms reveal that the creation of the internal market was not a short-term project that was completed in 1992, nor even an enterprise that gently begged to have a few loose ends tidied up before being triumphantly pronounced historical fact. In reality the internal market, as an exercise in creating a unified economic space underpinned by a constitutionalized system of supra-State legal rules in a politically fragmented but interdependent environment, is one manifestation of the extraordinary exercise in multi-level governance which is evolving in Europe. Systems of this complexity do not stop fluctuating; 'free' markets are politically contested.
