The Application of Public Policy and Public Security Reasons for Justifying Restrictions to Free Movement of Capital in the EU

Sažetak

The paper explores public policy and public security grounds for justifying restrictions to free movement of capital in the EU, analyses the distinction between these two grounds and discusses the limits for their application. The content of these terms is flexible and their concrete meaning is determined by the Court of Justice of the European Union. Most prominent example of restrictions of capital movement were the golden shares. More recently, screening mechanisms that asses incoming foreign direct investment represent a significant new type of restriction of free movement of capital.