L 337/8 Official Journal of the European Communities 12.12.98 COUNCIL REGULATION (EC) No 2679/98 of 7 December 1998 on the functioning of the internal market in relation to the free movement of goods among the Member States THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 235 thereof, Having regard to the proposal from the Commission ('), Having regard to the opinion of the European Parlia- ment (%), Having regard to the opinion of the Economic and Social Committee (%), (1) Whereas, as provided for in Article 7a of the Treaty, the internal market comprises an area without internal frontiers in which, in particular, the free movement of goods is ensured in accordance with Articles 30 to 36 of the Treaty; (2) Whereas breaches of this principle, such as occur when in a given Member State the free movement of goods is obstructed by actions of private indi- viduals, may cause grave disruption to the proper functioning of the internal market and inflict serious losses on the individuals affected; (3) Whereas, in order to ensure fulfilment of the ob- ligations arising from the Treaty, and, in particular, to ensure the proper functioning of the internal market, Member States should, on the one hand, abstain from adopting measures or engaging in conduct liable to constitute an obstacle to trade and, on the other hand, take all necessary and proportionate measures with a view to facilitating the free movement of goods in their territory; (4) Whereas such measures must not affect the exer- cise of fundamental rights, including the right or freedom to strike; (5) Whereas this Regulation does not prevent any actions which may be necessary in certain cases at Community level to respond to problems in the functioning of the internal market, taking into account, where appropriate, the application of this Regulation; (6) Whereas Member States have exclusive competence as regards the maintenance of public order and the safeguarding of internal security as well as in deter- mining whether, when and which measures are () OJ C 10, 15. 1. 1998, p. 14. () OJ C 359, 23. 11. 1998. () OJ C 214, 10. 7. 1998, p. 90. necessary and proportionate in order to facilitate the free movement of goods in their territory in a given situation; (7) Whereas there should be adequate and rapid exchange of information between the Member States and the Commission on obstacles to the free movement of goods; (8) Whereas a Member State on the territory of which obstacles to the free movement of goods occur should take all necessary and proportionate meas- ures to restore as soon as possible the free move- ment of goods in their territory in order to avoid the risk that the disruption or loss in question will continue, increase or intensify and that there may be a breakdown in trade and in the contractual relations which underlie it; whereas such Member State should inform the Commission and, if requested, other Member States of the measures it has taken or intends to take in order fo fulfil this objective; (9) Whereas the Commission, in fulfilment of its duty under the Treaty, should notify the Member State concerned of its view that a breach has occurred and the Member State should respond to that noti- fication; (10) Whereas the Treaty provides for no powers, other than those in Article 235 thereof, for the adoption of this Regulation, HAS ADOPTED THIS REGULATION: Article 1 For the purpose of this Regulation: 1. the term ‘obstacle’ shall mean an obstacle to the free movement of goods among Member States which is attributable to a Member State, whether it involves action or inaction on its part, which may constitute a breach of Articles 30 to 36 of the Treaty and which: (a) leads to serious disruption of the free movement of goods by physically or otherwise preventing, delaying or diverting their import into, export from or transport across a Member State,