Chapter 7 Outline answers to problem questions

Chapter 7 Outline answers to problem questions

Gerry owns a specialist butchers' shop in Madrid, Spain. It has been successful for a number of years and he has identified premises in Portugal where he can expand his business to. Unfamiliar with Portuguese food standards regulations, he contacts the (fictitious) Portuguese Butchery Association (PBA) who offer free advice on all such matters. However, he is dismayed to receive notification from the PBA that as he is not a Portuguese national, he is not able to obtain the free advice offered.

Advise Gerry on his rights under EU law in relation to all aspects of this scenario.

Introduction setting out the principles of freedom of establishment and freedom to provide services within the context of the internal market – Article 26 TFEU.

Set out freedom of establishment and freedom to provide services, explaining in what circumstances the relevant rights are applicable with application to the facts.

Consideration of both freedom of establishment and freedom to provide services to determine appropriate rights.

Freedom of establishment includes the rights of individuals and companies to pursue activities in another Member State, for instance setting up and managing a business or practising a profession, on a permanent basis. Where a person is established in one state and provides services into another, this constitutes the provision of services.

Application – Gerry is pursuing activities in another Member State in setting up a business on a permanent basis. This would be a secondary establishment as he is already established in Spain.

Consideration of the meaning of establishment – broad concept Gebhard. This case would appear to involve securing of a permanent presence.

Consideration of whether a natural or legal person – Suggested on facts that this is a legal person as a company (Segers).

Then look at the content of the rights. Key aspect here is that of a breach of the principle of non-discrimination – Article 18 TFEU and Article 49 TFEU.

Includes the right to pursue activity ‘under the conditions laid down for its own nationals by the law of the country where such establishment is effected’.

Applied to the facts – appears to be clear discrimination on grounds of nationality.

Any potential derogation – may be considered but nothing raised on facts.

Consider whether rights capable of being enforced in national courts – Direct effect of Articles 49 and 56 TFEU confirmed in Reyners and Van Binsbergen.

Conclusion – summarise the key points mentioned above.

Back to top