Restrictions on the free movement of capital on grounds of public order and security. Foreign capitals and direct investments of the Church of Scientology.
Art. 10 EUCFR
Art. 63 TFEU
1. The prohibition on restricting the movement of capitals between Member States of the European Union, as well as between Member States and third countries, does not affect the right of Member States to take measures justified on grounds of public policy or public security.
2. However, this does not allow a completely generic and indeterminate regime of prior authorization for foreign direct investments, limited to defining the investments concerned as harmful to public order and public security.
3. These vagueness and indeterminacy imply that the interested parties are not able to know the specific circumstances under which the prior authorization is required: this conflicts with the principle of legal certainty.
(Request for a preliminary ruling in a case between "the Association Église de scientologie de Paris", an association governed by French law, together with the "Scientology International Reserves Trust", a British trust, and the French Prime Minister, who had rejected the request to repeal the regime of the prior authorization foreseen by French legislation for certain categories of foreign direct investments).