The EU Free Movement of Capital and Third Countries: Recent Developments

Abstract

This article discusses the recent developments on the EU free movement of capital and third countries. It critically reviews the CJEU jurisprudence on the overlapping between the freedom of establishment and free movement of capital, namely in the case of dividends and direct investment where the taxpayer exercises definite influence over the company paying the dividends. Departing from the SECIL case, this article also discusses the lack of exchange of information as a relevant justification for restrictions to free movement of capital, when third countries come into play, direct effect of association agreements, their repercussion in the standstill clause under Article 64 (1), and horizontal comparison.