The Treaty on the Functioning of the European Union (“TFEU”) is one of the primary treaties that govern the European Union (“EU”). It sets out the institutional framework, powers, and objectives of the EU, as well as the functioning of its internal market and economic policies. The TFEU, along with the Treaty on European Union, forms the legal basis of the EU. The TFEU was originally known as the Treaty establishing the European Economic Community (EEC) and was signed in 1957. Over the years, it has been amended and revised through several treaties, including the Single European Act, the Treaty of Maastricht, the Treaty of Amsterdam, the Treaty of Nice, and the Treaty of Lisbon. The TFEU covers various aspects of EU policies, including …
Internal Market: The TFEU aims to establish and maintain a single market within the EU, ensuring the free movement of goods, services, capital, and people. It promotes fair competition, harmonization of regulations, and removal of barriers to trade among member states.
Economic Policies: The TFEU establishes the basis for EU economic policies, including coordination of member states’ economic activities, monetary policy, employment policies, and social policies. It aims to achieve balanced economic growth, price stability, and a high level of employment.
Competition Policy: The TFEU contains provisions related to EU competition law, prohibiting anti-competitive agreements and abuse of dominant market positions. It establishes the European Commission as the authority responsible for enforcing competition rules and maintaining a level playing field for businesses.
Common Agricultural Policy (“CAP”): The TFEU outlines the framework for the CAP, which governs agricultural subsidies, market interventions, and rural development policies within the EU. The CAP aims to support farmers, ensure food security, and promote sustainable agriculture.
Environmental Protection: The TFEU includes provisions for environmental protection and sustainable development. It allows the EU to adopt measures to address pollution, protect natural resources, and promote environmental sustainability.
Consumer Protection: The TFEU includes provisions to safeguard consumer rights within the EU, including measures to protect health, safety, and economic interests of consumers.
The TFEU also defines the powers and functioning of the EU institutions, such as the European Commission, the European Parliament, the Council of the European Union, and the Court of Justice of the European Union. Like other EU treaties, the TFEU is a complex legal document that governs the functioning of the EU. Its provisions have been interpreted and applied through subsequent legislation, regulations, and case law.