The European Court of Justice and the two lighthouse functions of social law in the European legal space

Abstract

The article explores how social law operates as a “lighthouse” in the case-law of the European Court of Justice. It is argued that social law has had such guiding functions at two different levels, closely connected to the evolution of the Union’s competences. Firstly, the economic integration envisioned by the drafters of the Rome Treaty coincided with the unprecedented development of social security law and labour law in the founding Member States following World War II. Although the EEC had initially limited competences on social security and labour matters, the Court could not simply ignore that development when it applied and interpreted Community—and later on EU—rules of an essentially economic nature. The first lighthouse function of social law and social rights in Community law thus came from Member States’ arguments based on the need to preserve their social policies in the broad sense, which prompted the Court to accept nuances to the effect of EU free movement and competition rules. Secondly, the EU itself has gained increasing competences over time in matters connected to social law. The development of a vast body of EU social law, as interpreted by the Court, has thus increasingly served as a lighthouse for the Member States, supplemented by the fundamental rights connected to “solidarity” contained in the Charter of fundamental rights of the EU. The article concludes that today’s Social Europe would not be what it is without the Court’s contribution. Its case-law upholds concrete protection afforded by EU law to migrant and non-migrant citizens and guarantees the principles of equal treatment and non-discrimination in employment and occupation without losing sight of national diversity where EU law does not command uniform solutions. It acknowledges the fact that Member States’ social policies may have an impact on the scope of EU rules governing the establishment of the internal market and competition. The Court thus plays a central role in keeping both lighthouse functions of social law illuminating the European legal space.