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Unpublished Paper
The Free Movement of Capital in Europe: Is the European Court of Justice Living up to its Framers' Intent and Setting an Example for the World?
ExpressO (2015)
  • Jarrod Tudor, Kent State University - Kent Campus
Abstract
The benefits to free movement of international financial flows are numerous but include an efficient asset market and the opportunity for economic growth and development for countries engaged in an agreement allowing for such freedom. The free movement of capital is one of the four pillars of the Treaty on the Function of the European Union (TFEU) along with the free movement of goods, services, and labor. Article 63 of the TFEU prohibits limitations on the free movement of capital while Article 65 of the TFEU allows for some exceptions. Not only does the free movement of capital doctrine suppose that currency can freely move across the political boundaries of the European Union, but the doctrine also affects the purchase of real estate, investment in securities, and taxation by citizens of its member-states. Non-compliance among member-states as they draft domestic law is the chief threat to the free movement of capital. It has been the responsibility of the European Court of Justice (ECJ) to interpret Articles 63 and 65 to limit infringements against this fundamental freedom. This article surveys the leading cases on the free movement of capital and is designed to serve as both a resource for those wishing to gain a greater understanding of the free movement of capital in Europe and attempts by member-states not to comply while also exploring the jurisprudence of the European Union in an attempt to determine if the ECJ is meeting the intent of the Framers’ to allow a seamless flow of capital across member-states. The final analysis reflects an ECJ with a strong preference for the free movement of capital and little toleration for a member-state’s ability to craft favorable exceptions under domestic law.
Keywords
  • European Union,
  • free movement of capital,
  • Treaty on Functioning of the European Union,
  • economic integration,
  • taxation
Publication Date
April 4, 2015
Citation Information
Jarrod Tudor. "The Free Movement of Capital in Europe: Is the European Court of Justice Living up to its Framers' Intent and Setting an Example for the World?" ExpressO (2015)
Available at: http://works.bepress.com/jarrod_tudor/3/