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The Impact of EU Law in Luxembourg: Does Size Matter?

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Small States in a Legal World

Part of the book series: The World of Small States ((WSS,volume 1))

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Abstract

This chapter engages with Luxembourg’s nature as a small state, and the impact its size may have on its relation with the European Union (and in particular its legal order), of which it is a founding Member State. When it comes to size, Luxembourg’s relationship to the European Union is ambiguous. Territorially and demographically speaking, Luxembourg is, with its 2.586 km2 and just over half a million inhabitants, a lightweight, no doubt. Historically and politically speaking, Luxembourg however punches above its geographical weight. It is not only a founding Member State of the EU but has also continuously acted and been perceived as a loyal partner of the European integration project, a stable economy embedded in the internal market and a significant diplomatic player. The European Commission and the institutions that preceded it have had eighteen presidents over time, three of which were Luxembourg nationals: Gaston Thorn was the President of the European Commission from 1981–1985, Jacques Santer from 1995–1999 and Jean-Claude Juncker is the Commission’s current head. Luxembourg, and especially its capital, Luxembourg City, host divisions of the European Parliament and the European Commission as well as the Court of Justice of the European Union (‘CJEU’ or ‘the Court’). In April, June and October of each year, the meetings of the Council are held in Luxembourg.

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Notes

  1. 1.

    European Union (2016).

  2. 2.

    European Council in Edinburgh (1992): While the seat of the European Council is in Brussels, it was decided at the European Council in Edinburgh in 1992 that during these 3 months, the European Council would convene in the Grand Duchy.

  3. 3.

    Der Internationale Karlspreis zu Aachen (2016a).

  4. 4.

    Der Internationale Karlspreis zu Aachen (2016b).

  5. 5.

    European Union (2016).

  6. 6.

    6/64 [1964] ECR 585; 11/70 [1970] ECR 1125.

  7. 7.

    For scholarly commentary see de Witte (2011); Kumm (2005); von Bogdandy and Schill (2011).

  8. 8.

    26/62 [1963] ECR.

  9. 9.

    Craig and de Búrca (2011), pp. 268–296.

  10. 10.

    In contrast, those Member States that joined at a later stage knew that supremacy and direct effect were part of EU law.

  11. 11.

    Treaty of Lisbon 2007, Declaration Number 17, 12008E/AFI/DCL/17. Now, Declaration No. 17: concerning primacy enshrines the principle of supremacy, as formulated by the Court.

  12. 12.

    Craig and de Búrca (2011), pp. 272–285.

  13. 13.

    R (on the application of HS2 Action Alliance Limited) v Secretary of State for Transport and another [2014] UKSC 3.

  14. 14.

    Luxembourg’s recorded history can, however, be traced back to Roman times.

  15. 15.

    Gerkrath and Thill (2012), p. 1087.

  16. 16.

    Its independence was however only formally ratified in 1867, the date until the Dutch King retained sovereignty over Luxembourg. For an overview of Luxembourg’s history, see Trausch (1992); Pauly (2013).

  17. 17.

    For an overview of Luxembourg’s constitutional history, see Gerkrath and Thill (2012).

  18. 18.

    Weber (1957); Ravarani (2007), pp. 59–83.

  19. 19.

    For an overview of this process in English, see Gerkrath (2013a).

  20. 20.

    Luxembourg also joined the League of Nations in 1920.

  21. 21.

    The creation of the BeNeLux was decided in 1943 when the governments of Luxembourg, Belgium and the Netherlands were in exile in London. It was then formally founded by the BeNeLux Treaty of 1958, which was signed for a duration of 50 years (and renewed in 2008). The Treaty of Rome of 1958 founded the European Economic Community, the predecessor of what currently is the European Union.

  22. 22.

    According to AV Dicey, ‘The principle of parliamentary sovereignty means neither more nor less than this: namely that parliament thus defined has, under the English constitution, the right to make or un make any law whatever; and further, that no person or body is recognized by the law of England having a right to override or set aside the legislation of parliament...’. See Dicey (1915), pp. 3–4.

  23. 23.

    Article 48 TEU governs the Treaty revision procedure in the EU and Article 294 TFEU outlines the EU’s Ordinary Legislative Procedure.

  24. 24.

    This mirrors the peaceful reception of international Treaties in EU law.

  25. 25.

    The European Coal and Steel Community was the predecessor of the European Economic Community. It was created by the 1951 Treaty of Paris.

  26. 26.

    Such revision was considered all the more necessary as the ECSC was a success and that the formation of similar communities was being considered, see Gerkrath and Thill (2012), p. 1092.

  27. 27.

    Such revision was considered all the more necessary as the ECSC was a success and that the formation of similar communities was being considered, see Gerkrath and Thill (2012), p. 1092.

  28. 28.

    Constitution of Luxembourg 1868, art 37. This is my own translation. According to the simultaneous modification of article 37, such treaties have to be approved by a law adopted under the same majority requirements as those, which apply for constitutional revision.

  29. 29.

    Article 5 of the Draft Constitution provides that the Grand Duchy ‘participates in the European Union’ and that ‘the exercise of the State’s powers may be transferred to the European Union […] by an act passed by qualified majority’. The fact that the transfer of powers to the EU, as currently envisaged by the Luxembourg Constitution is only temporary and has been subject to criticism by Gerkrath (2013a), p. 459.

  30. 30.

    Moyse (2005).

  31. 31.

    An answer to parliamentary question n° 1538 from June 21, 2011 issued by MP Alex Bodry. On this, see Gerkrath (2013b). The statute of the Luxembourg Constitutional Court also excludes international Treaties from constitutional review.

  32. 32.

    Mak (2010), p. 322.

  33. 33.

    Mak (2010), pp. 311, 322; Spielmann (2001), p. 532; Cour supérieure de justice (cassation criminelle), 14 July 1954, Pas. lux., XVI, 150, Chambre des Métiers v Pagani; Conseil d’Etat, 28 July 1951, Pas. lux. XV, 263, Dieudonné v Administration des Contributions.

  34. 34.

    Conseil d’Etat, 21 November 1984, Pas. lux., XXVI, p. 174. Translation by author.

  35. 35.

    European Justice (2016).

  36. 36.

    The Constitution of Luxembourg 1868, art 95: This article was introduced by the constitutional revision of 12 July 1996, and the Constitutional Court Act 1997.

  37. 37.

    Gerkrath (2014), p. 123; Pescatore (1962), p. 96; Kinsch (2010), pp. 383–399.

  38. 38.

    Mak (2010), p. 320.

  39. 39.

    Gerkrath (2014), p. 123.

  40. 40.

    Ibid.

  41. 41.

    Ibid.

  42. 42.

    Other factors matter too in this regard, certainly for instance Luxembourg’s geographical location.

  43. 43.

    Of course there may be many other reasons. It would for instance be interesting to study whether the fact that the CJEU is located in Luxembourg, and that its judgements are rendered in French, the lingua franca of Luxembourg law, have any role to play.

  44. 44.

    Lardy (1997), p. 75. An exception in this regard is for instance the UK, where Irish nationals and ‘qualifying’ Commonwealth citizens can vote. On this, see Representation of the People Act 1983, s 1(1)(c).

  45. 45.

    For an overview of the concept of EU citizenship, see by way of example works by Francis Jacobs.

  46. 46.

    TFEU, art 22; Council Directive 93/109/EC OJ 1993 L329/34; Council Directive 94/80/EC OJ 1994 L368/38. This right has also been enshrined in the Charter of Fundamental Rights of the European Union, namely arts 39(1) & 40.

  47. 47.

    Constitution of Luxembourg 1868, art 107: which amended by the constitutional revision of 23 December 1994. See also Gerkrath (2013b), p. 544.

  48. 48.

    Institut national de la statistique et des études économiques (2015).

  49. 49.

    Ibid. In 1910, Luxembourg had about 260,000 inhabitants, most of Luxembourg nationality.

  50. 50.

    Government of the Grand Duchy of Luxembourg (2015). There are also 10,000 people employed by the EU institutions in Luxembourg.

  51. 51.

    Index Mundi (2015); Institut national de la statistique et des études économiques (2015).

  52. 52.

    Loi électorale du 18 février 2003, art 2(4).

  53. 53.

    Lansbergen and Shaw (2010), p. 62.

  54. 54.

    Luxembourg’s demographic structure and labour economics are certainly more complex than these general statements indicate. They are nonetheless indicative of a broad pattern.

  55. 55.

    Gerkrath (2014), p. 111.

  56. 56.

    This was the first government in a few decades that the Conservative Party formed no part of.

  57. 57.

    On the Luxembourg referendum, see Heuschling (2013); Gerkrath (2013a).

  58. 58.

    I develop this argument further in Finck Michèle Finck ‘Towards an Ever Closer Union Between Residents and Citizens? On The Possible Extension of Voting Rights to Foreign Residents in Luxembourg' 11 European Constitutional Law Review (2015) 78-98.

  59. 59.

    The French text of the relevant referendum question read as follows: ‘Approuvez-vous l’idée que les résidents non luxembourgeois aient le droit de s’inscrire de manière facultative sur les listes électorales en vue de participer comme électeurs aux élections à la Chambre des Députés, à la double condition particulière d’avoir résidé pendant au moins dix ans au Luxembourg et d’avoir préalablement participé aux élections communales ou européennes au Luxembourg?’

  60. 60.

    TNS Ilres (2012).

  61. 61.

    As well as the paradox of Luxembourg continuing to apply a restrictive regime with regard to local elections yet considering to have a way more inclusive regime regarding national elections than any other Member State at this moment in time.

  62. 62.

    C-20/12 (2013) ECR 411.

  63. 63.

    Eurostat (2016).

  64. 64.

    There are also 10,000 people employed by the EU institutions in Luxembourg. See Government of the Grand Duchy of Luxembourg (2015).

  65. 65.

    Mak (2010), p. 316.

  66. 66.

    Gerkrath (2014), p. 120; Weirich (1986), p. 982; Schockweiler (1998) quoting Jean-Paul Hoffman: ‘Les questions préjudicielles posées par les juridictions luxembourgeoises à la CJCM’.

  67. 67.

    Opinion of Advocate General Mengozzi of 7 February 2013 in C-20/12 Elodie Giersch v. Etat du Grand Duché du Luxembourg (2013) ECR 411.

  68. 68.

    Ibid, para 46.

  69. 69.

    Ibid, para 63.

  70. 70.

    Ibid, para 79.

  71. 71.

    Ibid, para 50. In front of the CJEU, the Luxembourg government in fact argued that ‘because of budgetary constraints it cannot be more generous towards non-resident students without putting the entire system of financial aid into question’.

  72. 72.

    Gerkrath (2013a), p. 457.

  73. 73.

    The text of the Draft Constitution can be accessed online. Commission des Institutions et de la Révision constitutionnelle (2015) Texte cordonne propose par la commission des institutions et de la revision constitutionelle. Available at http://www.referendum.lu/Uploads/Nouvelle_Constitution/Doc/1_1_6030%20version%2030.06.15.pdf. Accessed 13 July 2016.

  74. 74.

    The Constitution of Luxembourg 1868, art 28.

  75. 75.

    Ibid, art 11.

  76. 76.

    Gerkrath (2014), p. 121.

  77. 77.

    The Draft Constitution of Luxembourg 2015, art 12 (supra note 74).

  78. 78.

    Ibid, art 13.

  79. 79.

    Ibid, art 14.

  80. 80.

    Ibid, art 15.

  81. 81.

    Ibid, art 23.

  82. 82.

    Ibid, art 25.

  83. 83.

    Ibid, art 16(1).

  84. 84.

    Ibid, art 16(3).

  85. 85.

    Ibid, art 16(2).

  86. 86.

    Protocol 12 to the European Convention for the Protection of Human Rights and Fundamental Freedoms, art 1; Charter of Fundamental Rights of the European Union, art 21.

  87. 87.

    It might be argued that this right is implicit in the prohibition of the death penalty, which is enshrined in the Constitution. This would still not, however, explain why the drafters refrained from explicitly affirming it, given its centrality.

  88. 88.

    Gerkrath (2013b).

  89. 89.

    The Constitution of Luxembourg 1868, art 51.

  90. 90.

    Garlicki (2008), p. 511.

  91. 91.

    Spielmann (2001).

  92. 92.

    Ibid, p. 19.

  93. 93.

    Ibid, p. 19.

  94. 94.

    Gerkrath (2013a), p. 457.

  95. 95.

    Bruck (2014).

  96. 96.

    Gerkrath (2013a), ‘Some Remarks on the Pending Constitutional Change in the Grand Duchy of Luxembourg’, p. 456.

  97. 97.

    The Venice Commission (2009), para 34.

  98. 98.

    The Venice Commission (2009).

  99. 99.

    Ibid, para 35.

  100. 100.

    Ibid, para 36.

  101. 101.

    Ibid, para 39.

  102. 102.

    Ibid.

  103. 103.

    [1974] EWCA Civ 14, [1974] 2 All ER 1226, [1974] 3 WLR 202, [1974] Ch 401.

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Finck, M. (2017). The Impact of EU Law in Luxembourg: Does Size Matter?. In: Butler, P., Morris, C. (eds) Small States in a Legal World. The World of Small States, vol 1. Springer, Cham. https://doi.org/10.1007/978-3-319-39366-7_4

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