European Union – Freedom of movement. The standstill clause in art 64(1) of the Treaty on the Functioning of the European Union should be interpreted as meaning that art 63(1) TFEU did not prejudice the application of a restriction on movements of capital to or from third countries involving direct investment which had existed, in its essence, on 31 December 1993 in the legislation of a member state, although the scope of the restriction had been extended, after that date, to include shareholdings which did not involve direct investment. The Court of Justice of the European Union so held, among other things, in proceedings regarding the incorporation of the income obtained by a company incorporated under Swiss law which was partly owned by the applicant company which was incorporated under German law, into the latter's tax base.