Keywords
Summary

Keywords

1 . FREE MOVEMENT OF CAPITAL - IMPLEMENTATION - CRITERIA - ASSESSMENT OF THE REQUIREMENTS OF THE COMMON MARKET - POWERS OF THE COUNCIL

( EEC TREATY , ARTS . 67 ( 1 ) AND 69 )

2 . FREE MOVEMENT OF CAPITAL - PROVISIONS OF THE TREATY - ARTICLE 67 ( 1 ) - DIRECT EFFECT - ABSENCE - RESTRICTIONS ON THE EXPORTATION OF BANK NOTES - WHETHER PERMISSIBLE

( EEC TREATY , ARTS . 67 ( 1 ) AND 69 )

3 . FREE MOVEMENT OF CAPITAL - MOVEMENTS OF CAPITAL WHICH HAVE NOT BEEN LIBERALIZED - RECOURSE TO THE SAFEGUARD CLAUSE IN ARTICLE 73 OF THE TREATY - NONE

( EEC TREATY , ART . 73 )

4 . FREE MOVEMENT OF CAPITAL - PROVISIONS OF THE TREATY - ARTICLE 71 , FIRST PARAGRAPH - DIRECT EFFECT - ABSENCE

( EEC TREATY , ART . 71 , FIRST PARAGRAPH )

5 . BALANCE OF PAYMENTS - LIBERALIZATION OF PAYMENTS - TRANSFERS RELATING TO INVISIBLE TRANSACTION - RE-EXPORTATION OF BANK NOTES - EXCLUSION

( EEC TREATY , ART . 106 ( 3 ))

6 . BALANCE OF PAYMENTS - LIBERALIZATION OF PAYMENTS - PAYMENTS RELATING TO COMMERCIAL TRANSACTIONS - AUTHORIZATION TO TRANSFER BANK NOTES - OBLIGATION ON THE PART OF THE MEMBER STATES - ABSENCE

( EEC TREATY , ART . 106 ( 1 ) AND ( 2 ))

7 . FREE MOVEMENT OF CAPITAL - MOVEMENTS OF CAPITAL AND TRANSFERS OF CURRENCY WHICH HAVE NOT BEEN LIBERALIZED - CONTROL MEASURES ADOPTED BY MEMBER STATES - CRIMINAL PENALTIES - WHETHER PERMISSIBLE

( EEC TREATY , ARTS . 67 AND 106 )

Summary

1 . ARTICLE 67 ( 1 ) OF THE EEC TREATY DIFFERS FROM THE PROVISIONS ON THE FREE MOVEMENT OF GOODS , PERSONS AND SERVICES IN THE SENSE THAT THERE IS AN OBLIGATION TO LIBERALIZE CAPITAL MOVEMENTS ONLY ' ' TO THE EXTENT NECESSARY TO ENSURE THE PROPER FUNCTIONING OF THE COMMON MARKET ' ' . THE SCOPE OF THAT RESTRICTION , WHICH REMAINED IN FORCE AFTER THE EXPIRY OF THE TRANSITIONAL PERIOD , VARIES IN TIME AND DEPENDS ON AN ASSESSMENT OF THE REQUIREMENTS OF THE COMMON MARKET AND ON AN APPRAISAL OF BOTH THE ADVANTAGES AND RISKS WHICH LIBERALIZATION MIGHT ENTAIL FOR THE LATTER , HAVING REGARD TO THE STAGE IT HAS REACHED AND , IN PARTICULAR , TO THE LEVEL OF INTEGRATION ATTAINED IN MATTERS IN RESPECT OF WHICH CAPITAL MOVEMENTS ARE PARTICULARLY SIGNIFICANT .

SUCH AN ASSESSMENT IS , FIRST AND FOREMOST , A MATTER FOR THE COUNCIL , IN ACCORDANCE WITH THE PROCEDURE PROVIDED FOR BY ARTICLE 69 .

2 . ARTICLE 67 ( 1 ) OF THE TREATY MUST BE INTERPRETED AS MEANING THAT RESTRICTION ON THE EXPORTATION OF BANK NOTES MAY NOT BE REGARDED AS ABOLISHED AS FROM THE EXPIRY OF THE TRANSITIONAL PERIOD , IRRESPECTIVE OF THE PROVISIONS OF ARTICLE 69 .

3 . FAILURE TO HAVE RECOURSE TO THE SAFEGUARD PROCEDURES PROVIDED FOR BY ARTICLE 73 IN REGARD TO RESTRICTIONS IMPOSED ON CAPITAL MOVEMENTS WHICH THE MEMBER STATE CONCERNED IS NOT OBLIGED TO LIBERALIZE UNDER THE RULES OF COMMUNITY LAW DOES NOT CONSTITUTE AN INFRINGEMENT OF THE EEC TREATY .

4 . THE FIRST PARAGRAPH OF ARTICLE 71 OF THE TREATY DOES NOT IMPOSE ON THE MEMBER STATES AN UNCONDITIONAL OBLIGATION CAPABLE OF BEING RELIED UPON BY INDIVIDUALS .

5 . ARTICLE 106 ( 3 ) OF THE TREATY IS INAPPLICABLE TO THE RE-EXPORTATION OF A SUM OF MONEY PREVIOUSLY IMPORTED WITH A VIEW TO MAKING PURCHASES OF A COMMERCIAL NATURE IF SUCH PURCHASES HAVE NOT IN FACT BEEN EFFECTED .

6 . THE FIRST TWO PARAGRAPHS OF ARTICLE 106 OF THE TREATY ARE DESIGNED TO ENSURE THE FREE MOVEMENT OF GOODS IN PRACTICE BY AUTHORIZING ALL THE TRANSFERS OF CURRENCY NECESSARY TO ACHIEVE THAT AIM . HOWEVER , THOSE PROVISIONS DO NOT REQUIRE THE MEMBER STATES TO AUTHORIZE THE IMPORTATION AND EXPORTATION OF BANK NOTES FOR THE PERFORMANCE OF COMMERCIAL TRANSACTIONS , IF SUCH TRANSFERS ARE NOT NECESSARY FOR THE FREE MOVEMENT OF GOODS . IN CONNEXION WITH COMMERCIAL TRANSACTIONS , THAT METHOD OF TRANSFER WHICH , MOREOVER , IS NOT IN CONFORMITY WITH STANDARD PRACTICE , CANNOT BE REGARDED AS NECESSARY TO ENSURE SUCH FREE MOVEMENT .

7 . WITH REGARD TO MOVEMENTS OF CAPITAL AND TRANSFERS OF CURRENCY WHICH THE MEMBER STATES ARE NOT OBLIGED TO LIBERALIZE UNDER THE RULES OF COMMUNITY LAW , THOSE RULES DO NOT RESTRICT THE MEMBER STATES ' POWER TO ADOPT CONTROL MEASURES AND TO ENFORCE COMPLIANCE THEREWITH BY MEANS OF CRIMINAL PENALTIES .