The free movement of capital and grounds for justification: what is the extent of the EU's reach in fiscal matters? 

In this article, the authors outline the current state of affairs on the status of third countries in relation to Community law. With reference to case law, the authors discuss the relationship between the free movement of services, the freedom of establishment, and the free movement of capital. They also look at the effect justification grounds have in third country situations. 

They conclude that, according to European Court of Justice ("ECJ") case law, the granting of finance credit primarily affects the free movement of services and that a possible conflict with the free movement of capital is only a knock-on effect from a conflict with the free movement of services. Determining the order of precedence of the freedom of establishment and the free movement of capital is less straightforward. The article also concludes that the scope of the grounds for justification in situations involving third countries is possibly broader than for situations within the European Union. ECJ case law on this issue remains equivocal. We have therefore not yet heard the last on this issue. The political and treaty law influences and consequences involved ensure that it will remain a sensitive matter.

Original title: Over de vrijheid van kapitaalverkeer en rechtvaardigingsgronden: hoe ver reikt de EU in fiscalibus?