The December 2007 ruling by the ECJ in the ‘Vaxholm’ case in Sweden has been roundly condemned by European trade unionists for condoning ‘social dumping’ and by free-market eurosceptics for allowing socialism to return by the back door. Neither interpretation is correct, according to Professor Alan Riley, of City University, London, and Associate Research Fellow at CEPS. In his view, the Court’s decision strives to permit the free movement of labour and services while maintaining the social norms of the host state.