The Legal and Regulatory Aspects of the Free Movement of Capital – Towards the Capital Markets Union

Journal of Legal Theory HU ISSN 1588-080X

18 Pages Posted: 10 Jan 2020

See all articles by László Vértesy

László Vértesy

Budapest University of Technology and Economics; National University of Public Service

Date Written: December 13, 2019

Abstract

The free movement of capital – as it is traditionally seen as the fourth freedom, after goods, workers and persons, services and establishment – is a long-standing objective of the European Union, a fundamental freedom at the heart of the single market. The paper summarizes the development of the free movement of capital by describing the provisions of the primary law sources and listing the prominent directives and regulations. The major challenges of the capital liberalization are demonstrated through the case law of the Court of Justice of the European Union, highlighting the different areas and judgments, legal principles. Finally, the situation of the Capital Market Union initiative and the Action plan are presented in details. The catching up is important for the non-euro zone states, since they could have experienced the disadvantages of the backlog in the case of the Bank Union, where the European Central Bank granted unlimited liquidity with favorable conditions for the euro-zone member banks after the financial crisis. Later even similar situation may occur on capital markets, and on the other hand, a boosting development can start. Whoever stays out, misses out.

Keywords: capital markets, European Union, EU law, Capital Market Union

JEL Classification: G15, F36, K22

Suggested Citation

Vértesy, László, The Legal and Regulatory Aspects of the Free Movement of Capital – Towards the Capital Markets Union (December 13, 2019). Journal of Legal Theory HU ISSN 1588-080X, Available at SSRN: https://ssrn.com/abstract=3507356

László Vértesy (Contact Author)

Budapest University of Technology and Economics ( email )

Magyar Tudósok krt. 2.
Budapest, 1117
Hungary

National University of Public Service ( email )

Üllői út 82.
Budapest, 1083
Hungary

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