Open question 1
Explain the difference between EU citizenship and the free movement of workers. What is the added value of EU citizenship? In your answer, refer to relevant legislation. (15 points)
Open question 2
The Dutch Museum for Comic Books wants to scan every comic book in its collection but doesn't have the money to buy an advanced book scanner. The municipality of Heerlen, in which the museum is located, is considering to offer the museum a 750.000 euro subsidy. This subsidy would have to be used by the museum to buy the latest Book Scanner 3000XL, a professional book scanning machine. The museum director would be very happy with such a generous subsidy as it would enable the museum to open an 'online' branch and become the first online comic book museum. Visitors of this new online museum would have to buy a 5 euro ticket to get access to the museum's comics. Should the Dutch municipality of Heerlen notify the European Commission of its plans? And if so, on what basis? In your answer, refer to relevant legislation and case law. (20 points)
Open question 1
The difference is that a worker is cross-border economically active, while a EU citizen also has the right to free movement and to reside on the territory of another Member State than his or her nationality, based on the status as a EU citizens as such. Every national of one of the MS is a EU citizen (Article 20 TFEU). The right to reside in another Member State may, however be conditional, according to the Directive 2004/38.
- Up to 3 months: the right to stay in another Member State without conditions except valid ID (art. 6)
- Up to 5 years: right to stay for workers or self-employed or for other citizens having sufficient resources and a sickness insurance, students and family members (art. 7)
- After 5 years: right to permanent residence (art. 16)
Moreover, EU citizens have political rights, the right to vote and stand as a candidate for European and municipal elections in another Member State (Article 22 TFEU). Even though workers in EU law have a strong position, EU citizenship proved to be a significant status, which grants different right to EU citizens based on nationality (mostly when there is a cross-border dimension).
Open question 2
State aid – 107 TFEU 6 points
- Advantage (‘aid’) for undertaking or sector
- Definition: Altmark, par. 84.
- Granted through state resources
- Selectivity: favoring certain undertakings
- Effect on competition
- Effect on Member State Trade
- Exceptions: Article 107(2) and (3) TFEU
Applying 107 TFEU 12 points
- Advantage: yes, the museum is given an economic advantage which the museum would not have obtained under normal market conditions.
- Granted through state resources: yes, the municipality of Heerlen is an organ of the state. Subsidies is paid by funds of municipality of Heerlen.
- Selectivity: only this particular museum is given the subsidy.
- Treaten to distort competition: Yes, likely (Deminimis Notice).
- Effect on Member State Trade: trade is generally affected if financial aid strengthens the position of an undertaking (Philip Morris, par. 11)
- Exception: 107(3)(d) TFEU may apply? “Aid to promote culture and heritage conservation where such aid does not affect trading conditions and competition in the Union to an extent that is contrary to the common interest.”
However, the aid would likely affect conditions and competition in the Union because of its commercial nature.
State aid must be notified – 108(3) TFEU 2 points
Plans to grant state aid must be notified to the European Commission.
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