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Usher, John --- "Monetary movements and the internal market" [2006] ELECD 414; in Shuibhne, Nic Niamh (ed), "Regulating the Internal Market" (Edward Elgar Publishing, 2006)

Book Title: Regulating the Internal Market

Editor(s): Shuibhne, Nic Niamh

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781845420338

Section: Chapter 7

Section Title: Monetary movements and the internal market

Author(s): Usher, John

Extract:

7. Monetary movements and the internal
market
John Usher

INTRODUCTION
The rules governing monetary movements represent a unique evolution of
regulatory technique from detailed secondary legislation to directly effective
Treaty principle. Liberalisation of capital movements as such was achieved by
the enactment of secondary legislation, since the original Treaty provisions,
unlike those governing the other freedoms, were held not to be capable of
direct effect. The result was that freedom of movement was finally achieved
over 20 years late. By way of contrast, the old Article 106 EEC on current
payments related to other freedoms was held to be directly effective,1 albeit
only allowing payments in the creditor's currency,2 and indeed restrictions on
payments relating to the other freedoms were sometimes categorised as
restrictions on those substantive freedoms.3 Be that as it may, the lists of capi-
tal movements attached to successive directives, culminating in the list
annexed to Directive 88/361,4 include operations that are clearly current
payments as well as capital movements as such.
Nevertheless, soon after liberalisation of capital movements had been
achieved by legislation, the Maastricht Treaty introduced new rules on capital
movements and payments which are broadly drafted and have been held to be
capable of direct effect. The introduction of these new rules (Articles 56­60
EC) may be regarded as an element of the second stage of Economic and
Monetary Union (EMU), but they apply to all Member States. Article 56
extends to movements to and from third ...