Strengthenning Western Balkan Countries Corporates' Competitiviness Through the Right of Establishment

Sonja Buncic and Andrea Andrejevic
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Sonja Buncic: EDUCONS University, Faculty of Business Economics, Sremska Kamenica
Andrea Andrejevic: EDUCONS University, Faculty of Business Economics, Sremska Kamenica

Chapter 28 in Managing Structural Changes - Trends and Requirements, 2012, vol. 1, pp 506-520 from Institute of Economic Sciences

Abstract: Freedom of movement for the companies on the EU internal market is protected by the right of establishment which is guaranteed by The Treaty Establishing of the European Community. The company’s founders, according to the right of establishment, should be free to set up a company in any Member State regardless the country in which company have a real seat. Freedom of choice would encourage national legislators to regulate their national law to be attractive to investors. In this way will be achieved convergence in the area of law organizations, better and faster, than the one based on political compromises. For its implementation and interpretation of a large contribution was the practice of The European Court of Justice, from the case of Daily Mail to the case Cartesio, which are relevant for the development of this legal institution. In this chapter authors suggest the necessity of implementation of this institution in the economy of associated members of the European Union. Strengthening of the Western Balkan countries and the possibility of their joining the European Union market is enabled by introducing the right of establishment through the adoption of The Stabilisation and Association Agreement. It is the first time that the freedom of movement of the companies is introduced in the national laws of these countries. Using the right of establishment, on the principles of reciprocity, companies in the Western Balkans could expand their business to the EU market. For now, this right remains only in the domain of theory, and practitioners need to be acquainted with the EU regulations in order to be capable to take advantage of freedom of the business establishment which is enabled to them.

Keywords: The right of establishment; the practice of EU Court; The Stabilisation and Association Agreement; freedom of movement; company law (search for similar items in EconPapers)
Date: 2012
ISBN: 978-972-9344-06-0
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