Democracy as an obstacle for free movement within the EU

Is free movement of services compatible with the Swedish Labour market model? In recent years the conflict between the EU’s economic freedoms – freedom of movement of goods, capital, services and persons protected by the Treaties – and basic trade union rights has become increasingly prominent in the European debate.

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Research shows that the EU’s deregulation agenda is having an increasing impact on the various national market economies in the EU. It concerns distinctive national economic characteristics such as regulation of the financial market, competition legislation, corporate governance and the organisation of the labour market.

One example of a national variant of market economy is the Swedish system of regulating wages and terms of employment through collective agreements.

This report – through a combination of studying the literature and examining current political and legal decisions within the EU – will endeavour to describe the mechanisms of the EU’s constitutional structure that support a development in which the EU’s deregulation agenda restricts national scope of action in an increasing number of areas.