7. Free Movement of Capital and Payments

Learning Outcomes

• Student explains the principles and legal foundation of capital and payment movements.
• Student interprets Articles 63–66 TFEU in the context of liberalization of capital flows.
• Student analyzes examples of restrictions and their justifications in national legislation.
• Student assesses the relationship between free movement of capital and financial regulation.

Compulsory EU Law

• TFEU, Articles 63-66, 75, 143-144, 215, 345
• Case 203/80 Casati
• Case 286/82 and 26/83 Luisi and Carbone
• Case C-163/94, C-165/94 and C-250/94 Sanz de Lera
• Case C-101/05 Skatteverket

Task to Consider

Instructions for students (max. 300–400 words total):

Answer the following four short questions. Support your answers with references to the relevant Treaty provisions and case law.

• Question 1: Explain the difference between movements of capital and payments under EU law. Refer to Articles 63–66 TFEU and relevant case law.
• Question 2: Is a system of prior administrative authorisation for transferring money to another Member State compatible with EU law? Refer to Sanz de Lera and Casati.
• Question 3: Can Member States impose declaration or reporting obligations on cross-border cash payments? Refer to Luisi and Carbone and Skatteverket.
• Question 4: List two legitimate grounds on which restrictions on the free movement of capital may be justified under EU law.