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Editorial of November 2018

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 by Alessandra Silveira, Editor

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In the face of globalised populism, European Union as a kind of “life insurance”

In case C-619/18, Commission v Poland, pending judgment by the Court of Justice of the European Union (ECJ), the European Commission has requested the Court, in the context of interim proceedings, to order Poland to suspend the application of the provisions of national legislation relating to the lowering of the retirement age for Supreme Court judges,[i] among other measures.

As the ECJ Press Release No 159/18 briefly explains, on 3 April 2018 the new Polish Law on the Supreme Court entered into force. Under that Law, the retirement age for Supreme Court judges has been lowered to 65. The new age limit applies as of the date of entry into force of that Law. It is possible for Supreme Court judges to continue in active judicial service beyond the age of 65 but this is subject to the submission of a statement indicating the desire of the judge concerned to continue to perform his/her duties and a certificate stating that his/her health conditions allow him/her to serve, and must be consented to by the President of the Republic of Poland. Thus, according to the Law, serving Supreme Court judges who reached the age of 65 before that Law entered into force or, at the latest, on 3 July 2018, were required to retire on 4 July 2018, unless they had submitted such a statement and such a certificate by 3 May 2018 inclusive and the President of the Republic of Poland had granted them permission to continue in active service at the Supreme Court. In making his decision, the President of the Republic of Poland is not bound by any criteria and that decision is not subject to any form of judicial review. Furthermore, the Law on the Supreme Court gives the President of the Republic of Poland the power to freely decide, until 3 April 2019, to increase the number of Supreme Court judges.

As we know, the Vice-President of the Court, Ms Rosario de Lapuerta, on 19 October 2018, provisionally granted all the Commission’s requests – and Poland must immediately suspend the application of the new Polish Law on the Supreme Court.[ii] The legal basis of such ruling, relying upon judicial independence as a general principle of EU law and as a fundamental right protected in its order, has been built in the recent ECJ case-law, especially in judgments Associação Sindical dos Juízes Portugueses (ASJP) and LM[iii].
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LM judgment – effective judicial protection as general principle and fundamental right

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 by Joana Covelo de Abreu, Editor

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2018 is the year when effective judicial protection undertakes several new developments.

In this sense, the Associação Sindical dos Juízes Portugueses’ judgment (ASJP) set the tone to great developments under effective judicial protection dimension concerning the independence of courts. In this decision, the Court of Justice understood effective judicial protection as not only a fundamental right, but also a general principle of EU law. In fact, the Court of Justice preferred to set this jurisprudence based on the general principle – as enshrined Article 19 (1) (2) TFEU – because that was the way to liberate effective judicial protection from the methodical difficulties brought by Article 51 CFREU.

In this decision, the Court of Justice reasoned based on Article 2 TEU (concerning the values of the EU), Article 4 (3) TEU (principle of sincere cooperation) and Article 19 (1) TEU, emphasising Article 19 (1) TEU as a “concrete expression to the value of the rule of law stated in Article 2 TEU” and acknowledging the integrated nature of the EU judiciary system – composed both by ECJ as EU organic court and national courts as EU functioning courts.

But when we thought the Court of Justice had already enough developed effective judicial protection, we are surprised with the LM judgment (case C-216/18 PPU).

This decision, issued on the July 25th 2018, was developed under a preliminary reference made in order to interpret the limits concerning the enforcement of three European Arrest Warrants. They aimed at arresting and surrendering LM to Polish authorities for the purpose of conducting criminal prosecutions (concerning trafficking in narcotic drugs and psychotropic substances).
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A (in)definition of public service through the State aid rule

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 by Ana Filipa Afonseca, member of CEDU

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The State often reveals itself (or is said to be) incapable of pursuing the public interest through its own resources. This is the reason why the economic operators are compensated for the public activities they provide, in the so-called Services of General Economic Interest (SGEI), according to Article 14 of TFEU.

Beyond all the political discussion about the raison d’être of the State underlying this rule, the limit between an incompatible State aid and this compensation is often too thin and unclear.

Naturally, several questions arise about the (good or bad) management of state resources – which the CJEU gradually solves. These issues already go beyond the choice of the private entity or even the overcompensation (which is politically the most contested by citizens and the Court always claims to be against EU law) but they also bring up a discussion on the definition of public service of general economic interest.

The case T-92/11 RENV, which opposed Jorgen Anderson to the European Commission, initiated in Denmark concerning public transportation. In that country there are two systems of transport services: the free traffic system, commercially exploited, and the public traffic system, negotiated with public entities through a public contract.
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Editorial of October 2018

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 by Vlad Jurje, PhD candidate and Lecturer at Universidad Rey Juan Carlos

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Poland v. Fundamental Rights?

A new episode concerning to the Rule of Law in Poland has recently taken place and the European Commission is very concerned. After the recent reform of the National Council of the Judiciary[i], the Polish Parliament has the capacity to decide when to appoint the member judges that compose it. A fact that seriously undermines the norms and international standards on which the independence of the judicial power in Europe is regulated.

We also highlight the instability that has arisen from the reform of the Constitutional Court in Poland because the interference that the Executive and the Legislative branches have committed put at risk the independence of the judicial power. According to the new law which has come into force, out of the 72 current members that form part of the Supreme Court 27 could be forced to retire, since the retirement age was changed: instead of retiring at 70, the new law would remove men at 65 and women at 60.
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1st August 2018, Earth Overshoot Day

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 by Sophie Perez Fernandes, Junior Editor

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According to data from the Global Footprint Network, August 1 is Earth Overshoot Day 2018.

Earth Overshoot Day is an initiative of Global Footprint Network, a non-profit international research organization dedicated to the development and promotion of tools to promote sustainable development. The date of Earth Overshoot Day is calculated by comparing two metrics: the Global Ecological Footprint, humanity’s total yearly consumption, with biocapacity, Earth’s capacity to regenerate renewable natural resources in that year. Both metrics are calculated each year with National Footprint Accounts and using UN statistics and data from additional sources.

As explained in the website, Earth Overshoot Date marks the date when all of humanity have used more from nature than our planet can renew in the entire year. According to the information disclosed last June, humanity will have exhausted on August 1, that is, in just over seven months, its entire nature’s resource budget of 2018. As from that date, the world will live on credit in 2018 – an environmental credit that, according to the data disclosed, is contracted earlier and earlier. Exceeding in 1961, planet Earth registered the first deficit in its environmental budget in the 1970s. Since then, the growing ecological footprint that accompanies the demographic and economic growth of the planet explains that Earth Overshoot Day occurs ever earlier – until the earliest date calculated of August 1 in 2018.
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The security at sports events: an important issue for the European Union

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by Álvaro Alzina Lozano, PhD candidate and Lecturer of Criminal Law at Universidad Rey Juan Carlos

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On the occasion of the celebration of sporting events in the European Union of such high magnitude as the (UEFA) Champions League, we must analyze how the Union itself has provided cooperation mechanisms to the Member States in order to eradicate possible violent acts in stadiums, because we all remember the lousy images of the last football games in the 2016 European Championship held in France where groups of ultras coming from different cities started urban wars.

The concerns of the European institutions to eliminate the violence generated by hooligans has its origin in the tragedy of Heysel, in which during the 1985 Champions League final at the Heysel Stadium in Brussels (Belgium) 39 fans died after an avalanche caused by the Liverpool hooligans. Furthermore, we must add that two weeks later another 56 fans died in a football stadium in Valley Parade due to a fire.

These main facts caused a movement of concern in the European institutions to prevent these sorts of incidents, and the Council of Europe approved in that year the European Convention on Spectator Violence and Misbehaviour at Sports Events and in particular at Football Matches, which was modified in 2015 by a more updated one.
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The impact of Brexit on international trade taxation

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 by Andreia Barbosa, PhD student at the Law School of UMinho
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On 23 June 2016, the British people decided to leave the European Union, re-launching the idea that belonging to the European Union, in the light of Article 50 of the Treaty on European Union, does not seem to be an obligation, but a choice. States have the (unilateral) right to leave.

The actual effects of Brexit are not yet fully known. In fact, its exact consequences will only be effectively known when the negotiations are over – which will only happen, predictably, in early 2019.

There are, however, more likely scenarios than others and, consequently, more likely effects than others. Among the most immediate scenarios and effects, are those relating to the commercial transactions between the United Kingdom and the European Union. Because, of course, one of the most important ideals of the European Union is the free movement of goods, based on the existence of a single market without technical and physical frontiers in the free movement of persons, services, goods and capital­. So, the question arises as to the terms under which trade in goods between the United Kingdom and the Member States of the European Union will take place.
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Editorial of July 2018

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 by Alessandra Silveira, Editor 
 and Sophie Perez Fernandes, Junior Editor

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Artificial intelligence and fundamental rights: the problem of regulation aimed at avoiding algorithmic discrimination

The scandal involving Facebook and Cambridge Analytica (a private company for data analysis and strategic communication) raises, among others, the problem of regulating learning algorithms. And the problem lies above all in the fact that there is no necessary connection between intelligence and free will. Unlike human beings, algorithms do not have a will of their own, they serve the goals that are set for them Though spectacular, artificial intelligence bears little resemblance to the mental processes of humans – as the Portuguese neuroscientist António Damásio, Professor at the University of Southern California, brilliantly explains[i]. To this extent, not all impacts of artificial intelligence are easily regulated or translated into legislation – and so traditional regulation might not work[ii].

In a study dedicated to explaining why data (including personal data) are at the basis of the Machine-Learning Revolution – and to what extent artificial intelligence is reconfiguring science, business, and politics – another Portuguese scientist, Pedro Domingos, Professor in the Department of Computer Science and Engineering at the University of Washington, explains that the problem that defines the digital age is the following: how do we find each other? This applies to both producers and consumers – who need to establish a connection before any transaction happens –, but also to anyone looking for a job or a romantic partner. Computers allowed the existence of the Internet – and the Internet created a flood of data and the problem of limitless choice. Now, machine learning uses this infinity of data to help solve the limitless choice problem. Netflix may have 100,000 DVD titles in stock, but if customers cannot find the ones they like, they will end up choosing the hits; so, Netflix uses a learning algorithm that identifies customer tastes and recommends DVDs. Simple as that, explains the Author[iii].
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Judgment “Altun”: priority to fight against cross-border social security fraud and social dumping or a just a trick mirror?

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by Marc Morsa, Senior Researcher at the Faculty of Law of the University of Louvain-La-Neuve

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1. Social dumping and binding force of E101 certificate (A1 document)

1.1 The scope of the binding force of E101 certificate

In the fight against cross-border social fraud and social dumping the competent authorities of the host Member State in whose territory posted workers are employed often come up against the binding force attached to the E101 certificates stating that the worker concerned continued to be subject to the legislation of that Member State, and until which date. This binding force has been defined by the ECJ in a well-established jurisprudence[i]. This certificate thus necessarily implies that the other Member State’s social security system cannot apply[ii]. It establishes a presumption that the worker concerned is properly registered with the social security system of the Member State in which the undertaking employing him is established[iii][iv]

1.2 The cornerstone of the binding force of E101 certificate: the principles of loyal cooperation and mutual trust between the EU and its Member States

For the ECJ this presumption of regularity of affiliation derives from the principle of loyal cooperation, set out in Article 4 (3) TEU and its corollary, the principle of mutual trust[v]. Both principles impose on the social security institutions concerned a double reciprocal and interdependent obligation[vi]. Thus, to the negative obligation incumbent on the competent institution of the host Member State (and on all the courts and tribunals of the Member States regardless of the nature of the proceedings brought, whether civil or criminal) not to unilaterally challenge the certificate E101 – its particulars[vii] and not to question the validity of an E 101 certificate in the light of the elements on the basis of which it was issued corresponds to the positive obligation incumbent on the competent institution (issuing the E 101 certificate) to make a proper assessment of the facts relevant for the application of the rules relating to the determination of the legislation applicable to social security and, consequently, to ensure that the information contained in an E 101 certificate is accurate[viii].
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Transposition of the Damages Directive in Portugal

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 by Maria Barros Silva, Trainee Lawyer at SRS Advogados

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Directive 2014/104/EU was finally transposed into the Portuguese legal system by Law No. 23/2018 of 5 June, which regulates the right to compensation for victims of infringements to competition law. The Damages Directive was published on 26 November 2014, having a deadline for transposition on 27 December 2016. Portugal was the last Member State to transpose the Directive, almost a year and a half after the deadline, following a call from the Commission to take the necessary steps to ensure its full implementation. Hopefully, this will avoid an infringement procedure from the Commission and any possible fines.

In essence, the content of the Law corresponds to the text of the Directive, although it does go beyond it in certain aspects, with some innovative solutions.

Firstly, the scope of the Law. It applies not only to actions for damages for infringements of European Union competition law (Articles 101 and 102 TFEU, with or without parallel application of equivalent national rules), as laid down in the Directive; but also to actions for damages based on purely national infringements, with no cross-border effects (Articles 9, 11 and 12 of the Competition Law – Law no. 19/2012, of 8 May) or corresponding legal norms in other Member States. Secondly, the law applies not only to actions for damages, but also to other claims based on infringements of competition law.
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