Free movement of capital

01-02-2018

The free movement of capital is one of the four fundamental freedoms of the EU single market. It is not only the most recent one but, because of its unique third-country dimension, also the broadest. The liberalisation of capital flows progressed gradually. Since the Maastricht Treaty (1994), restrictions on capital movements and payments were removed, both between Member States and with third countries. The principle has direct effect, i.e. it requires no further legislation at either EU or Member State level.

The free movement of capital is one of the four fundamental freedoms of the EU single market. It is not only the most recent one but, because of its unique third-country dimension, also the broadest. The liberalisation of capital flows progressed gradually. Since the Maastricht Treaty (1994), restrictions on capital movements and payments were removed, both between Member States and with third countries. The principle has direct effect, i.e. it requires no further legislation at either EU or Member State level.