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FREE LAW JOURNAL - VOLUME 1, NUMBER 1 (18 JULY 2005)
3 One of the Central Elements of the Economic Constitution of the EU: the Social Market Economy
Article I-3 of the TCE –unlike the GG but like other European constitutions – expressis verbis lays down
the principle of market economy. 55 Consequently, it is well established to say that contrary to the Basic
Law of Germany, the text of the constitution provides for a special economic system of the Union, the
elements of which may also be found in the TCE. Further on it is reasonable to examine whether the
elements of the market economy appearing in the TCE are in compliance with the model of market
economy. The provisions of a basic law cannot be construed on their own, therefore, social market
economy should be examined in a wider context.
a) The values set forth in Article I-2 of the TCE on the Union’s values can be divided into a group of
fundamental rights and into a group of sovereignties. The group of fundamental rights comprises the
respect for human rights – in particular the rights of minorities 56 – human dignity, freedom and equality.
The other group comprises people’s sovereignty under the term of democracy and legal sovereignty under
the term of the statehood of the rule of law. The Union laid down values which are among the
fundamental provisions of the constitutions of the Member States. The sections of the TCE lay down the
common values of the Member States. 57 Thus, the Member States must have societies where these values
prevail. 58
Within the provisions pertaining to the values of the Union, the ones referring to fundamental rights and
the statehood of the rule of law suggest the image of social market economy. This image is reinforced by
the objectives, 59 in which the role of the values and the principle of the statehood of the rule of law are
strengthened. In Article I-3 (2) the TCE offers its citizens an area where the law prevails. Market economy
is included in the list of objectives as the TCE also offers an internal market where competition is free and
undistorted in the article cited above. This image of market economy is made more precise in the next
55 Article I-3 The Union’s objectives
(1) The Union’s aim is to promote peace, its values and the well-being of its peoples.
(2) The Union shall offer its citizens an area of freedom, security and justice without internal frontiers, and an internal market
where competition is free and undistorted.
(3) The Union shall work for the sustainable development of Europe based on balanced economic growth and price stability, a
highly competitive social market economy, aiming at full employment and social progress, and a high level of protection and
improvement of the quality of the environment. It shall promote scientific and technological advance.
It shall combat social exclusion and discrimination, and shall promote social justice and protection, equality between women
and men, solidarity between generations and protection of the rights of the child.
It shall promote economic, social and territorial cohesion, and solidarity among Member States.
It shall respect its rich cultural and linguistic diversity, and shall ensure that Europe’s cultural heritage is safeguarded and
enhanced.
(4) In its relation with the wider world, the Union shall uphold and promote its values and interests. It shall contribute to peace,
security, the sustainable development of the Earth, solidarity and mutual respect among peoples, free and fair trade, eradication
of poverty and the protection of human rights, in particular the rights of the child, as well as to the strict observance and the
development of international law, including respect for the principles of the United Nations Charter.
(5) The Union shall pursue its objectives by appropriate means commensurate with the competences which are conferred upon
it in the Constitution.
56 This provision was promoted by the Hungarians and the Slovaks and was objected by the Lithuanians. Cf. CIG 37/03 p 3,
CIG 52/03 p 3, CIG 76/04 p 4.
57 Pluralism, prohibition of discrimination, tolerance, justice, solidarity and equality between women and men. Cf. CIG 76/04 p
4
58 The values of the TCE may be grouped by the criterion whether they define a new value or not. Human dignity, equality, the
rights of the minorities and the values upheld in the Member State societies are among the new values. http://europa.eu.int (01
02 2005) SCADPlus: Constitution for Europe. The founding principles of the Union. p 2.
59 Article I-3
DR. TÍMEA DRINÓCZI - SOME ELEMENTS OF THE ECONOMIC CONSTITUTION OF THE EU: SOCIAL MARKET ECONOMY AND RELEVANT FUNDAMENTAL RIGHTS 73