Keywords
Summary

Keywords

(Free movement of capital - Restrictions - System of prior authorisation for direct foreign investments - Measure justified on grounds of public policy or public security - Lack of precision - Infringement of the principle of legal certainty)

(EC Treaty, Arts 73b and 73d(1)(b) (now Arts 56 EC and 58(1)(b) EC))

Summary

$$Article 73d(1)(b) of the EC Treaty (now Article 58(1)(b) EC), which provides that Article 73b of the Treaty (now Article 56 EC), prohibiting restrictions on the movement of capital between Member States and between Member States and non-member countries, is without prejudice to the right of Member States to take any measures which are justified on grounds of public policy or public security, must be interpreted as precluding a system of prior authorisation for direct foreign investments which confines itself to defining in general terms the affected investments as being investments that are such as to represent a threat to public policy and public security, with the result that the persons concerned are unable to ascertain the specific circumstances in which prior authorisation is required. Since such a lack of precision does not enable individuals to be apprised of the extent of their rights and obligations deriving from Article 73b of the Treaty, the system in question is contrary to the principle of legal certainty.

( see paras 21-23 and operative part )