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Wholly internal situation meaning

Published by a LexisNexis EU Law expert
What does Wholly internal situation mean?
A wholly internal situation describes a case where all the relevant facts, parties and effects are confined to a single state, so there is no cross-border link that engages EU law. The expression is descriptive and comes from CJEU (Court of Justice of the European Union) case law (often called a “purely internal situation”); it is not a statutory definition. Key features include: no movement of persons, goods, services or capital between Member States; no market-access issue for another Member State; and no appreciable effect on trade between Member States. In such cases, national law governs and EU free movement, establishment, citizenship and services provisions generally do not apply. The EU Charter applies only where a Member State is implementing EU law. EU rules may still bite if a specific EU measure applies through domestic implementation, or another objective EU link exists. Usage is consistent across England & Wales, Scotland, Northern Ireland and Ireland. In Ireland it is a frequent threshold issue for EU rights and preliminary references. In the UK post-Brexit it guides whether retained EU law, Withdrawal Agreement rights, or the Windsor Framework (notably in Northern Ireland) are engaged.
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