Services, Citizenship, and the Country of Origin Principle

Mitchell Working Paper No. 2/2007

24 Pages Posted: 20 Aug 2007

See all articles by Gareth T. Davies

Gareth T. Davies

VU University Amsterdam, Faculty of Law

Abstract

The country of origin principle requires states to apply different legal regimes to companies and persons according to their state of origin. This looks rather like nationality discrimination, contrary to Article 12 EC. It is also fundamentally at odds with one of the central pillars of citizenship, both national and European; equality between citizens. The preference for a relatively unfettered country of origin principle in the Services Directive raises doubts whether the directive has an adequate legal basis, and in any case makes it undesirable. It is an example of economic law that has profound impacts on many non-economic aspects of life. It fragments jurisdictions, and therefore societies. Yet it has been made with only the narrowest of trade interests in mind. It shows the danger of allowing technocracy-led legislation. And nor are the economic arguments even good. If Member States cannot apply their law within their jurisdiction, then their capacity to develop coherent regulatory regimes is undermined, and the competition between these regimes which might revitalise national legislation, to the benefit of economic and non-economic life, cannot take place. The degree of openness of markets is only one part of wealth creation, and so should be part of regulatory competition, not a precondition for it.

Keywords: citizenship, country of origin, services, services directive, european union, european law, discrimination, regulatory competition

JEL Classification: K00, K19, K23, K20, K33

Suggested Citation

Davies, Gareth T., Services, Citizenship, and the Country of Origin Principle. Mitchell Working Paper No. 2/2007, Available at SSRN: https://ssrn.com/abstract=1007728 or http://dx.doi.org/10.2139/ssrn.1007728

Gareth T. Davies (Contact Author)

VU University Amsterdam, Faculty of Law ( email )

De Boelelaan 1105
1081 HV Amsterdam
Netherlands

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