16. Free Movement of Services and Capital

Abstract

This chapter focuses on the third and fourth fundamental freedom of the European Union's internal market: the freedom of services and the freedom of capital. It begins by analysing the general aspects of the free movement of services. The European Court has significantly pushed negative integration through a restriction test; yet the Union has here equally followed a positive integration path in the form of the ‘Services Directive’. The chapter moves to two special—and very controversial—services regimes, namely that for posted workers and that for public services. It then deals with the free movement of capital, considering the scope of the (negative) freedom and surveying the various grounds on which restrictions to the free movement of capital may be justified.