Web-Companion Essential EU Law in Text: Suggested solutions to the exercises
Please find hereinafter the suggested solutions to the 64 exercises contained in the book "Tobler/Beglinger, Essential EU Law in Text, 5th edition, HVG-ORAC 2020, ISBN 978-963-258-490-4". To give you an idea how the exercises in the book are phrased, they have been added for the first three instances. Any comments or feedback are welcome.Free movement of capital – Exercise 1
Suggested solution:
The Treaty itself does not provide a definition. The Court, in defining the term, gives Annex I of Directive 88/361/EEC (a measure adopted before the entry into force of the present regime on the free movement of capital, and within the framework of that former regime) an indicative value. The annex lists numerous examples of investments that fall under the term “capital”. Investment in a company is a relevant form of investment if the investor through this investment does not gain decisive influence over the company (in which case the rules on the free movement of establishment would apply; Baars).
Unlike the other freedoms, free movement of capital covers both movement between two EU Member States as well as movement between an EU Member State and a third country. The investment of a Swiss person in the EU would be covered, as long as it is an investment within the meaning of Art. 63(1) TFEU and as long as the situation in which the right to free movement is relied on is not covered by a different freedom (Fidium Finanz).
[Relevant Charts: Chapter 8, in particular Chart 8/63]
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