Definition and Significance of the Cassis Formula
Die Cassis Formula constitutes a central principle in European economic law, particularly significant in the context of the free movement of goods within the European Union (EU). Its origin and naming stem from the judgment of the European Court of Justice (ECJ) on 20 February 1979 in the case ‘Rewe-Zentral AG v. Bundesmonopolverwaltung für Branntwein’ (Case 120/78, ‘Cassis de Dijon’). The Cassis Formula represents one of the key principles for the mutual recognition of goods within the internal market, thereby playing a decisive role in harmonizing the legal systems of the Member States.
Historical Background and Development
Origin in the ‘Cassis de Dijon’ Judgment
The so-called ‘Cassis de Dijon’ judgment arose from a legal dispute between an importer and a German authority. The Federal Monopoly Administration refused to approve the French blackcurrant liqueur ‘Cassis de Dijon’ in Germany because its alcohol content was below the minimum value prescribed by German law. However, the ECJ ruled that a product lawfully produced and marketed in one Member State must, in principle, also be permitted in other Member States, unless there are compelling reasons of public interest to the contrary.
Principle of Mutual Recognition
From this judgment, the principle of mutual recognition developed, according to which goods lawfully produced and placed on the market in one EU Member State may also be offered in all other Member States without additional national requirements.
Legal Classification of the Cassis Formula
Anchoring in Primary and Secondary Union Law
The Cassis Formula supplements and clarifies Articles 34 to 36 of the Treaty on the Functioning of the European Union (TFEU), which govern the prohibition of quantitative import restrictions and measures having equivalent effect between Member States.
- Article 34 TFEU: Ban on import restrictions and measures having equivalent effect.
- Article 36 TFEU: Exceptions for the protection of certain legal interests, e.g., health or public order.
The Cassis Formula thus constitutes an important interpretative aid for the application and development of law concerning the free movement of goods.
Content and Structure of the Cassis Formula
Basic Formula
The Cassis Formula can be summarized as follows:
Products that are lawfully manufactured and placed on the market in one Member State may, in principle, be marketed in any other Member State.
Requirements
- Lawful production and marketing in the country of origin:
The product must, in the Member State of its manufacture, comply with all applicable legal requirements there.
- Absence of compelling protective reasons:
Restrictions imposed by the import state are only permissible if there are compelling reasons of public interest, so-called ‘mandatory requirements.’
Mandatory Requirements and Their Significance
In its ruling, the ECJ cited the following mandatory requirements by way of example:
- Effectiveness of fiscal supervision
- Protection of public health
- Fairness of commercial transactions
- Consumer protection
This means that national provisions restricting imports are only compatible with EU law if they are objectively justified by such recognized public interest objectives and are proportionately designed.
Distinction from Other Legal Principles
Relationship to Harmonized and Non-Harmonized Matters
The Cassis Formula applies particularly in non-harmonized areas of law, that is, where there are no comprehensive EU-wide regulations. If, however, a matter is fully harmonized by an EU directive or regulation, the Union law provisions primarily apply, so that the Cassis Formula takes a back seat.
Distinction from Article 36 TFEU
While Article 36 TFEU lists certain exceptions such as the protection of public order and security exhaustively, the Cassis Formula opens up a broader possibility to justify restrictions with further mandatory requirements.
Practical Significance and Impact of the Cassis Formula
Consequences for the Internal Market
The Cassis Formula has eliminated many technical barriers to trade. It significantly contributes to strengthening the European internal market by not making the marketing of goods dependent on fulfilling the respective national regulations of all Member States, but instead relying on the principle of mutual recognition.
Cross-Border Case Scenarios
The Cassis Formula continues to have an effect today, for example with
- Requirements concerning ingredients and compositions (e.g., food, cosmetics)
- Product labeling and packaging
- technical production regulations
Thus, it ensures a balance between the interests of the free movement of goods and legitimate public welfare objectives.
Criticism and Further Development
Debates on Consumer Protection and Safety Standards
The application of the Cassis Formula sometimes raises concerns regarding different levels of consumer protection and safety among the Member States. It is particularly criticized that national protection levels could be lowered as a result of mutual recognition.
Further Development by Union Jurisprudence
In subsequent judgments, the ECJ has developed and expanded the list of ‘mandatory requirements.’ Questions of proportionality and the practical effectiveness of restrictions are also intensively examined. The Cassis Formula thus remains a living and dynamic principle of Union law.
Summary
Die Cassis Formula is a fundamental principle of European internal market law. Through the principle of mutual recognition, it largely ensures the admission of products that are permitted in an EU Member State also in other Member States. Restrictions are only permissible under strict conditions and must be justified by mandatory requirements of public interest and be proportionate. The Cassis Formula thus makes a significant contribution to the realization of the free movement of goods within the European internal market and remains a central standard for assessing national regulations in the light of Union law.
Frequently Asked Questions
When is the Cassis Formula applied in German constitutional law?
The Cassis Formula plays a central role in the assessment of the proportionality of restrictions on fundamental rights in German constitutional law. It is applied when it must be determined whether a restriction of fundamental freedoms imposed by law or measure—for example, professional freedom pursuant to Article 12(1) GG—is legally permissible. The formula serves here as a general balancing tool to determine whether a legitimate objective is pursued by suitable, necessary, and appropriate means. It is frequently used in connection with economic fundamental rights, particularly in issues concerning professional, trade, or market law. It forms an integral part of the three-step examination of fundamental rights as part of restriction control and is regularly cited by both the specialist courts and the Federal Constitutional Court.
What significance does the Cassis Formula have for judicial review of administrative acts?
In the context of judicial review of administrative acts—especially in the interpretation and application of undefined legal terms by authorities—the Cassis Formula provides a structured examination scheme to ensure that infringements of fundamental rights do not exceed what is necessary. It obliges courts, as part of their scrutiny, to inquire whether the measure in question actually serves the intended purpose (suitability), whether there are no milder yet equally effective means (necessity), and whether the measure is proportionate to the intended purpose (appropriateness/proportionality in the narrow sense). This increases the transparency and comprehensibility of the judicial decision and has led to the Cassis Formula becoming a standard in fundamental rights review in judicial practice.
To what extent does the Cassis Formula affect the legislator’s legislative competence?
The Cassis Formula acts as a limitation on legislative competence by obliging the legislator, when enacting laws that restrict fundamental rights, always to respect fundamental rights and observe the limits of the principle of proportionality. Although the legislator has a margin of appraisal, evaluation, and design (especially in the area of hazard prevention and predictive decisions), it may not disregard the need to justify the suitability, necessity, and appropriateness of its measures. In constitutional complaints or judicial review proceedings, the Federal Constitutional Court therefore scrutinizes compliance with the Cassis Formula very precisely and in cases of doubt annuls regulations that violate fundamental rights.
What role does the Cassis Formula play in the relationship between national and European law?
Although the Cassis Formula is a concept from German constitutional law, it parallels the principle of proportionality, which is also enshrined in European law (see Art. 52 CFR and Art. 5(4) TEU). In conjunction with the so-called ‘Cassis de Dijon’ case-law of the European Court of Justice (ECJ), both contribute to the protection of fundamental freedoms, with the European understanding of the principle of proportionality having significantly influenced the German Cassis Formula. In cases where national and Union law collide, the Federal Constitutional Court regularly examines whether national restrictions are subject to limits imposed by higher-ranking Union law with regard to proportionality.
Can the Cassis Formula also be applied outside the context of fundamental rights?
Although the Cassis Formula was originally developed as a standard for justifying interventions in fundamental rights, its application has sometimes been extended to other areas of law, such as public economic law or in cases of interference with subjective public rights outside the doctrine of fundamental rights. It provides a universally applicable examination scheme for any state-imposed restriction, whenever a balancing of different legal goods or interests is required. However, its origin and principal application remain clearly within the context of fundamental rights protection under German constitutional law.
How is the principle of appropriateness examined concretely under the Cassis Formula?
In the final step of the Cassis Formula examination—appropriateness or proportionality in the narrower sense—a comprehensive weighing of the importance of the pursued public welfare objective and the severity of the infringement of the fundamental right is carried out. The significance and urgency of the targeted objective must be weighed against the intensity and scope of the interference with the fundamental right. A measure is only appropriate if the public interest in achieving the objective outweighs the disadvantage to the individual and does not result in an unreasonable burden. Courts and authorities must justify and document this carefully in each individual case, so that any conflict between opposing legal positions is resolved in a comprehensible manner.
