The chapter begins by offering a broad macro-level overview of the
evolution of the free movement of capital, focusing in particular on the
interplay between the various actors in the political and legal system
of the Union. It then zooms to a more micro-level, investigating how the
Court’s approach to the concept of restriction has developed in the
last fifteen years or so, and analysing the tension that has emerged
between regulatory and tax matters. Finally, it seeks to examine the
likeliest source of significant future developments in the field, namely
the application of the freedom to capital movements between the EU and
third countries. It is argued that in the early years of the Community
the Member States were the driving force for the development of the law.
Since the mid-1990s, the Court has come to play a more prominent part,
following the rewriting of the free movement of capital rules. However,
while the Court’s case law up until 2006 posed a significant challenge
to the Member States, more recently it has shown a willingness to
moderate its jurisprudence in key respects. Nevertheless, it is clear
that the evolution of this area of law has not yet come to an end