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Thomas Burri

The Greatest Possible Freedom, page 1 - 16

Interpretive formulas and their spin in free movement case law

1. Edition 2015, ISBN print: 978-3-8487-2391-1, ISBN online: 978-3-8452-6549-0, https://doi.org/10.5771/9783845265490-1

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Nomos Thomas Burri The Greatest Possible Freedom Interpretive formulas and their spin in free movement case law Nomos BUT_Burri_2391-1.indd 1 29.09.15 09:52 Thomas Burri The Greatest Possible Freedom Interpretive formulas and their spin in free movement case law Nomos Verlagsgesellschaft BUT_Burri_2391-1.indd 3 29.09.15 09:52 Thomas Burri is an assistant professor of international and European law at the University of St. Gallen (HSG) in Switzerland. He received his education as a lawyer at the Universities of Basel and Zurich, as well as at the College of Europe in Bruges. This book was written while on research stays at Harvard University and the Ludwig-Maximilians-University in Munich. Thomas Burri previously published a book on the rights of minorities (‘Models of Autonomy? Case-Studies of Minority Regimes in Hungary and French Polynesia’) as well as articles in various international and European law journals and books. Webpage: www.thomas-burri.com. Die Deutsche Nationalbibliothek lists this publication in the Deutsche Nationalbibliografie; detailed bibliographic data is available in the Internet at http://dnb.d-nb.de a.t.: St. Gallen, Univ., Habil., 2015 ISBN 978-3-8487-2391-1 (Print) 978-3-8452-6549-0 (ePDF) British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library. ISBN 978-3-8487-2391-1 (Print) 978-3-8452-6549-0 (ePDF) Library of Congress Cataloging-in-Publication Data Burri, Thomas The Greatest Possible Freedom Interpretive formulas and their spin in free movement case law Thomas Burri 606 p. Includes bibliographic references and index. ISBN 978-3-8487-2391-1 (Print) 978-3-8452-6549-0 (ePDF) 1. Edition 2015 © Nomos Verlagsgesellschaft, Baden-Baden, Germany 2015. Printed and bound in Germany. This work is subject to copyright. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or any information storage or retrieval system, without prior permission in writing from the publishers. Under § 54 of the German Copyright Law where copies are made for other than private use a fee is payable to “Verwertungs gesellschaft Wort”, Munich. No responsibility for loss caused to any individual or organization acting on or refraining from action as a result of the material in this publication can be accepted by Nomos or the author. BUT_Burri_2391-1.indd 4 29.09.15 09:52 Für Lotti und Kaspar Table of Contents Introduction: The way to the greatest possible freedom ..............A 17 Free movement of persons and services: 1400 decisions ..............I 17 The structure of the book .....................................................II 19 Why is the first part on ‘the case-law’ necessary? Why not cover more interpretive formulas? .................................................. III 20 A text-based approach .........................................................IV 21 Why is this book useful and novel? .........................................V 22 An illustration of how this book is different from other works .....VI 25 What this book is not ..........................................................VII 27 The case-law ............................................................................B 29 The 1960s .........................................................................I 29 The 1970s .........................................................................II 34 Workers ........................................................................1 34 A first wave of cases: 34 – The year 1975: 36 – The remaining years of the decade: 36 Establishment .................................................................2 38 Social security .................................................................3 39 Aggregation and apportionment: 39 – Niemann and Petroni: 41 – Other aggregation: 43 – Aggregation and third states: 43 – Social security v. social assistance: 44 – Definitions and scope: 45 – Personal scope: 45 – Family: 46 – Unemployment: 47 – Sickness: 49 – Non-discrimination and residence: 49 – One legislation: 50 – Transition and technicalities: 51 Services .........................................................................4 52 The 1980s .........................................................................III 53 Workers ........................................................................1 53 Advantages: 55 – Educational advantages: 55 – Maintenance grants: 56 – Family members: 57 – Derogations: 58 – No violation of non-discrimination: 60 – Diploma recognition: 61 – The Ankara Agreement: 61 – Enlargement: 61 – Technicalities, purely internal situations: 62 Establishment .................................................................2 63 1985: 64 – 1986: 64 – 1987: 65 – 1988 and 1989: 65 – Purely internal situations and remainders: 66 – Companies: 67 – Diploma: 67 Social security .................................................................3 68 Definitions and scope: 68 – Social security v. social assistance: 69 – Further issues of definition: 70 – Aggregation and apportionment: 71 – Benefits of the same kind and rules against overlapping: 72 – Further aggregation: 74 – Aggregation and third states: 75 – Short periods of insurance and other intricacies: 76 – Recalculation: 77 – Aggregation and conditions of affiliation: 77 – Overlapping benefits, supplements: 79 – Adding to the disparities: 81 – More supplements: 82 – Unemployed frontier workers: 83 – Atypical frontier workers: 84 – Exporting unemployment benefits: 85 – A Kafka novel: 86 – Sickness: 86 – Applicable legislation: 87 – Non-discrimination and residence: 88 – The Dutch transition: 89 – Further non-discrimination: 90 – Technicalities: 91 Services .........................................................................4 93 Broadcasting: 93 – Posted workers: 94 – Variety: 95 – Infringement in the insurance sector: 96 – Public works: 96 – Lawyers: 96 – Broadcasting again: 97 – Remuneration: 98 – Transport services: 98 – Tourists: 98 The 1990s .........................................................................IV 98 Workers and citizens ........................................................1 99 Worker: 99 – Advantages: 100 – Education: 102 – Taxes: 103 – Derogations: 105 – Non-discrimination: 106 – Union citizenship: 107 – Ankara: 108 – Technicalities: 110 – Purely internal situations: 112 – Transition and remainders: 113 Establishment .................................................................2 114 Ships and aircrafts: 114 – Doctors: 116 – Purely internal situations: 116 – Taxation: 118 – Official authority: 119 – Names: 119 – Gebhard: 119 – Driving licences: 120 – Sunday trading: 120 – Non-profit: 121 – Austria: 121 – Non-discrimination: 122 – Legal persons: 122 – Technicalities: 124 – Secondary law as to companies and further technicalities: 125 – Diploma: 126 Social Security ................................................................3 129 Scope and definitions: 129 – Social security v. assistance: 129 – Conventions with third states: 130 – Further scope: 130 – Scope and applicable legislation: 131 – Ceasing occupation: 132 – Derived rights: 133 – Special non-contributory benefits, social assistance: 135 – Farming: 135 – (Not) purely internal situations: 135 – Monopoly, periods of insurance: 136 – Applicable legislation: 136 – Aggregation: 138 – Previous conventions: 141 – Changing circumstances: 142 – Benefits of the same kind, overlapping: 145 – Aggregation in Spain: 8 Table of Contents 146 – Aggregation and special non-contributory benefits: 147 – Differing retirement ages: 147 – Aggregation and civil servants: 147 – Broader aggregation: 148 – Family benefits: 150 – After Pinna: 151 – More family benefits: 152 – Post Rossi: 154 – Unemployment: 156 – Sickness and invalidity: 159 – Non-discrimination and residence: 161 – Third states: 164 – Ankara: 166 – Technicalities: 167 – Subrogation: 167 – Social security more broadly: 168 Services .........................................................................4 169 Posted workers: 169 – Tourist guides: 170 – Lawyers: 171 – Säger: 172 – Broadcasting: 172 – No connection to services, purely internal: 175 – Public works: 176 – Various services: 177 – Games of chance: 178 – Maritime transport: 179 – Again various services: 180 – Medical services: 182 – Taxation: 183 – Public procurement: 185 – Further services cases: 186 The 2000s .........................................................................V 188 Workers and citizens ........................................................1 188 Worker: 188 – Advantages: 189 – Family members: 190 – Family members and Union citizenship: 191 – Union citizenship, minimex, and students: 192 – Education without Union citizenship: 194 – Tideover allowance and Union citizenship: 194 – Job seekers and Union citizenship: 195 – Genuine link again: 195 – War victims and Union citizenship: 195 – Union citizenship and expulsion: 196 – Names and Union citizenship: 196 – Union citizenship and institutional issues: 197 – Union citizenship and other policies: 197 – Taxation: 198 – Taxes and houses: 199 – Cohesion of the tax system: 200 – Taxation of employees of the Communities: 201 – Taxes and Union citizenship: 201 – Taxes on cars: 202 – Taxes and real estate: 202 – Interim assistance and taxation: 203 – Derogations: 203 – Sufficient resources: 205 – Non-discrimination: 205 – Car registration: 207 – Further non-discrimination: 207 – Ankara: 208 – Ankara more favourable than the internal market: 211 – Agreements with other third states: 212 – Technicalities: 214 – Driving licences: 214 – Purely internal situations: 216 Establishment .................................................................2 217 Dentists: 217 – Opticians: 218 – Psychotherapists: 219 – Pharmacies: 219 – Lawyers: 220 – Pay slips for workers: 222 – Games of chance: 222 – Taxation: 223 – Car registration: 226 – Diploma: 226 – Private security: 227 – Bovine semen: 227 – Family members: 228 – Cars: 228 – Ankara: 229 – Europe Agreements: 229 – Switzerland: 231 – Purely in- Table of Contents 9 ternal situations: 231 – Secondary law: 231 – Open skies: 232 – Legal persons and taxation: 232 – Dividends: 233 – Incorporation: 233 – Taxation of capital gains and profits: 234 – Sight account with banks: 235 – Ship registration: 235 – Taxation of groups: 236 – Cross-border merger: 236 – Further companies, taxation (2006): 237 – More dividends caselaw: 238 – Companies and third countries: 239 – Further group cases: 240 – Inheritance tax: 241 – Taxation of limited partnerships: 241 – More dividends: 241 – Currency loss: 241 – Expenses for research and development: 242 – Further group taxation: 242 – Moving the seat: 245 – Secondary law re companies: 246 – Diploma recognition in 2000-2002: 246 – Diploma recognition in 2003-2004: 249 – Diploma recognition in 2005-2006: 251 – Diploma recognition in 2007-2009: 252 Social security .................................................................3 255 Scope and definitions: 255 – Special non-contributory benefits: 256 – Annex issues: 259 – Further scope and definitions: 260 – Applicable legislation: posted workers: 261 – One legislation: 262 – Ceasing occupation: 264 – Two legislations: 265 – Aggregation: 265 – Aggregation and child-rearing in Austria: 267 – Aggregation and employment with the Community: 268 – Further aggregation: 268 – Sickness benefits, medical services: 269 – Pensioners and sickness benefits: 272 – Unemployment benefits: 273 – Exporting unemployment benefits: 275 – Unemployed frontier workers: 275 – Family benefits: 276 – Family benefits and pensioners: 278 – Non-discrimination: 278 – Agreements with third countries, Ankara: 281 – Technicalities: 283 – Further social security cases: 284 Services .........................................................................4 285 Posted workers: 285 – Construction business: 286 – More posted workers: 286 – Medical services: 291 – Games of chance: 295 – Taxes: 296 – Private security firms: 306 – Leased cars: 308 – Maritime transport: 309 – Broadcasting: 312 – Public procurement: 316 – Ankara: 322 – Further services cases: 323 – Services more broadly: 335 The 2010s .........................................................................VI 337 Workers and citizens ........................................................1 337 Advantages: 337 – Residence: 339 – Taxation: 340 – Family members: 344 – Collective agreement: 344 – Non-discrimination: 345 – Driving licences: 347 – Ankara: 348 – Bulgaria: 352 – Union citizenship: 352 – Union citizenship and students: 353 – Permanent residence: 354 – Union citizenship and expulsion: 356 – Union citizenship and names: 356 – (Not) purely 10 Table of Contents internal situations, family reunification of Union citizens: 358 – Union citizens and prohibition to leave: 361 – Union citizenship and the broader family: 362 – The Union citizenship of a president: 362 – Issues left open re Union citizenship: 363 – Further cases: 363 Establishment .................................................................2 364 Taxes: 364 – Pharmacies: 364 – Laboratories: 365 – Games of chance: 366 – Car insurance: 367 – Lawyers, notaries, and courts: 368 – Non-discrimination: 369 – Ankara and other Agreements with third states: 371 – Technicalities: 372 – Legal persons and taxation: 372 – Further company cases: 378 – Companies and third states: 379 – Diploma: 381 Social security .................................................................3 382 Scope and definitions: 382 – Special non-contributory benefits: 384 – Discrimination: 385 – Applicable legislation: 385 – Sickness: 387 – Aggregation: 389 – Unemployment: 389 – Family benefits: 390 – Aggregation more broadly: 392 – Ankara: 392 Services .........................................................................4 393 Posted workers: 393 – Games of chance: 395 – Medical services: 399 – Taxes: 401 – Telecommunication and broadcasting: 404 – Public service concession: 407 – Non-discrimination: 409 – Maritime transport: 413 – Air transport: 413 – The Services Directive: 414 – Switzerland: 414 – Secondary law: 415 – Purely internal situations: 415 – Further cases: 416 The evolution of interpretive formulas .......................................C 417 ‘Broad’ ..............................................................................I 417 In the early days: until the mid-1970s ..................................1 418 Three branches of broad interpretation: 418 – First branch: broad interpretation of notions: 419 – Second branch: narrow exceptions from rules: 420 – Third branch: the greatest possible freedom: 421 – The spin exerted by interpretive formulas: 423 From the mid-1970s until the ‘Maastricht moment’ ...............2 423 First branch: broad notions ...........................................a) 423 The first and the second branch connecting: 426 – The first and the third branch connecting: 426 – Lebon expanding Kempf: 427 – Further broad interpretation: 428 Second branch: narrow exceptions from rules ...................b) 428 The second branch in establishment and services: 429 – Weakness of the second branch in social security: 430 Table of Contents 11 The third branch: the greatest possible freedom .................c) 431 The third branch’s outburst in the mid-1980s: 431 – The third branch’s outburst at the beginning of the 1990s: 432 – ‘Conditions most favourable’: 433 Spin – in the second branch ...........................................d) 434 Spin in the third branch – evolving into empty spin: 434 – Why empty spin?: 435 – Spin in the first branch: 436 Some conclusions from the period ...................................e) 436 During the age of Maastricht .............................................3 438 First branch: broad notions – ‘worker’ .............................a) 438 Broad free movement of workers: 440 – Broad interpretation in services: 441 – Further broad interpretation: 441 – Connection of the first and third branch: 442 – More broad interpretation: 442 – ‘Aim and broad logic’: 443 – The concept of establishment is ‘a very broad one’: 444 Second branch: narrow exceptions from rules – second branch connecting with third ......................................... b) 445 Second branch and recognition: 446 – Derogations: 446 – Second branch in social security: 446 – Second branch in services: 447 – Further derogations: 448 – Second branch connecting with the third in social security, sometimes: 448 – Second branch and recognition again: 449 – More derogations: 449 – Second branch and secondary law: 450 – Union citizenship implying a particularly restrictive interpretation of derogations: 450 – Narrow exception from recognition of driving licences: 451 – Narrow derogation from freedom of maritime services: 452 – Restrictive interpretation of the in-house exception: 452 – Derogations again: 452 Third branch: the greatest possible freedom ......................c) 453 Two branches connecting: 453 – ‘The most favourable conditions’: 454 – The greatest possible freedom again: 454 Spin – and advance statement of case-law .........................d) 455 Spin in the first branch: ‘worker’: 455 – Spin in other parts of the first branch: 456 – Spin in the second branch: 456 – Spin in third branch-combinations: 458 – Spin in the third branch: 458 – Spin at its clearest in third branch: 458 – Empty spin: 459 Some conclusions from the period ...................................e) 460 The present ....................................................................4 463 First branch: broad notions – ‘worker’ .............................a) 463 Other broad notions: 464 – Very broad establishment: 466 12 Table of Contents Second branch: narrow exceptions from rules ...................b) 467 Derogations, connecting with first branch: 467 – Second branch and posted workers: 468 – Further narrow derogations: 468 – Strict interpretation of non-exportability: 469 – Narrow derogations again: 469 – Narrow exceptions from recognition of driving licences: 470 – Exception from the free choice of one’s lawyer: 471 – Derogations, again: 471 – Further second branch interpretation: 472 – Back to derogations: 472 – Second branch in universal service: 473 – Further derogations: 473 – Second branch in secondary law: 475 – More second branch and driving licences: 475 – Narrow student loans: 476 Third branch: the greatest possible freedom – moving beyond social security ................................................... c) 476 Revival of third branch: 477 Spin – in the first branch ...............................................d) 478 Spin by very broad establishment: 479 – Spin in the second branch: 480 – Spin and driving licences: 481 – Further spin in the second branch: 481 – Spin in the third branch: 483 Some conclusions from the present ..................................e) 484 ‘Coordinated’ .....................................................................II 489 In the early days: until the mid-1970s ..................................1 489 The origin of ‘simply coordinated’: 489 – From justifying advantages to distributing powers …: 490 – … and back to justifying advantages: 491 – The complexity of coordination: 491 – The shift of Regulation 1408/71: 492 – Spin: 492 – Some conclusions from the period: 493 From the mid-1970s until the ‘Maastricht moment’ ...............2 494 Occurrence of ‘coordinated’ – ‘simple coordination’ under Regulation 1408/71 ..................................................... a) 494 Coordination to the disadvantage of migrant workers: 495 – ‘Separate claims’: 495 – Inversing simple coordination: 495 – Simple coordination, in effect a (dis)advantage for migrant workers: 496 – Obfuscation of the origins of ‘simple coordination’: 498 – Further simple coordination cases: 498 – ‘Coordination’ and the ‘stability of the system’: 499 – For and against migrant workers: 499 Spin ..........................................................................b) 499 Negative spin: 500 – Empty spin: 501 – More ‘un-empty’ spin: 501 Some conclusions from the period ...................................c) 501 During the age of Maastricht .............................................3 503 Table of Contents 13 Occurrence of ‘coordinated’ – the beginning of the age .......a) 503 Coordination and derived rights: 505 – Six decisions in 1997: 505 – Come-back in 2000: 507 – Two judgments in 2001: 508 – Inverse ‘mere coordination’: 508 – The ‘return’ of ‘complexity’: 509 – Advance statement of case-law: 510 Spin – and advance statement of case-law .........................b) 511 The return of empty spin: 512 – Regular spin: 512 Some conclusions from the period ...................................c) 513 The present ....................................................................4 514 Occurrence of ‘coordinated’ – frequent use .......................a) 514 Absence of harmonisation as a proxy: 515 – ‘Coordination’ v. free movement: 515 – No guarantee of neutrality: 516 – ‘Coordination’ under medical services: 516 – Advance statement: 517 – ‘No neutrality’ and ‘coordination’, again: 518 – The latest cases: 519 Spin ..........................................................................b) 520 Empty spin: 521 – Advance statement cancelling out spin: 522 – Compliance with the Treaty freedoms obscuring spin: 522 Some conclusions from the period ...................................c) 522 ‘Fundamental’ ....................................................................III 524 Previously existing ‘fundamental’ notions ............................1 524 The ‘fundamental’ freedoms and non-discrimination: 524 – ‘Fundamental’ rights: 527 – ‘Fundamental interests of society’ and other ‘fundamental’ notions: 528 – Conclusions: 530 The ‘status’, linking to Union citizenship ..............................2 530 The origins: the ‘Community national’ …: 530 – … And the ‘Community citizen’: 531 – The parties/national courts driving the ‘Community national’: 531 – The ‘Community national’ becoming current: 533 – Three decades of ‘Community nationality’ – and more: 534 – The end of the ‘Community national’: 535 – Conclusions: 535 The evolution of the ‘fundamental status’ .............................3 536 Occurrence – in the 2000s .............................................a) 536 Occurrence in the early 2010s: 538 – The blessings of the ‘fundamental status’: 539 Spin ..........................................................................b) 540 Empty spin: 542 – No spin, advance statement: 542 – Spin uncertain: 543 Conclusions ................................................................c) 544 Counterfactual evidence ...................................................4 544 Before Grzelczyk: 544 – After Grzelczyk, non-occurrence in the 2000s: 545 – Non-occurrence in the early 2010s: 547 – No non-spin, the blessings of the absence of ‘fundamental sta- 14 Table of Contents tus’: 548 – The curse of the absence of ‘fundamental status’: 549 – Conclusions: 550 Conclusion ..............................................................................D 551 Spin and emptiness ..............................................................I 551 Breadth .............................................................................II 553 Coordination .....................................................................III 554 Fundamentality ...................................................................IV 555 Table of Cases ..........................................................................E 557 Bibliography ............................................................................F 601 Acknowledgments ....................................................................G 605 Table of Contents 15

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Abstract

The book entitled 'The Greatest Possible Freedom' tells the story of natural persons in the internal market. The first part contains a thick chronological description of the case-law of the Court of Justice of the European Union on free movement of persons and services, including the hitherto largely neglected coordination of social security. In this sizeable body of case-law including roughly 1400 decisions the book then traces the evolution and spin of certain interpretive formulas. Broad formulas like the greatest possible freedom or coordinative formulas like simple coordination are thus examined and their almost eerie power comes to light.

Both practitioners representing clients in the internal market and academics interested in the internal market or interpretation more generally will likely find the book an essential read.

Zusammenfassung

Das Buch erzählt die Geschichte natürlicher Personen im Binnenmarkt. Der erste Teil enthält eine dichte, chronologische Beschreibung des Fallrechts des Gerichtshofes der Europäischen Union zur Freizügigkeit der Personen und Dienstleistungen, inkl. der bisher weitgehend vernachlässigten Koordination der Sozialversicherungen. In diesem über 1400 Entscheidungen umfassenden Fallrecht zeichnet das Buch sodann die Entwicklung und den Spin gewisser Interpretationsformeln nach. Weitere Formeln wie the greatest possible freedom oder koordinierende Formeln wie simple coordination werden so untersucht und ihre fast unheimliche Kraft tritt zu Tage.

Sowohl für Praktiker, die Klienten im Binnenmarkt vertreten, wie für Akademiker, die sich für den Binnenmarkt oder Interpretation im Allgemeinen interessieren, ist das Buch eine unentbehrliche Lektüre.