Limitation of the constitutional freedom of economic activity and initiative. prohibition for municipal legal entities to engage in economic activity

Limitation of the Constitutional Freedom of Economic Activity and Initiative. Prohibition for Municipal Legal Entities to Engage in Economic Activity The essential aim of this paper is to perform analysis of the prohibition for municipal legal entities to engage in economic activity provided in the Article 9(1) of the Law on Local Self-government of Republic of Lithuania based on the grounds of limitations of constitutional freedom of economic activity and initiative. The first part analyses the limitation of constitutional freedom of economic activity and initiative. The concept of constitutional freedom of economic activity and initiative is not absolute and could be limited on the respective conditions of limitation of the general individual freedom and limitation of the specific freedom of economic activity. Broader analysis is provided on the subjects of constitutional freedom of economic activity and initiative as well as position of municipal legal entities in this system. The analysis of local self-government is the focus of the second part of the paper. Accordingly, the concept and nature of local self-government is analysed in this part. Practical perception of local self-government is demonstrated by measuring of the essential functions of local self-government. These aspects imply conclusions about the specific features of local self-government and establish basis for the assessment of the economic freedom limitation. The aim of the third part of this paper is to analyse essential aspects of prohibition provided in the Law on Local Self-government of Republic of Lithuania and its practical implementation. Broader evaluation is performed by analysing practical cases when respective prohibition is not applicable. Provided arguments indicate problematic areas of analysing prohibition and its influence on achieving purposes of such regulation. The fourth and final part of this paper analyses the validity of prohibition for municipal legal entities to engage in economic activity on the grounds of limitation of the constitutional freedom of economic activity and initiative. Reasons, purposes and possible negative effects of the prohibition are analysed in this context. The paper draws to a conclusion that there are alternative methods to regulate economic activity of municipal legal entities that could be less damaging for constitutional freedom of economic activity and initiative