Professional Documents
Culture Documents
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Prior to VGeL
• Article 189 EEC (now Article 288 TFEU) – regulations binding and
directly applicable within Member States.
o BUT no specific reference within the EEC treaty to the obligations
under any other form of EEC law, including those under the treaty
articles themselves, being directly enforceable in national courts.
o This is the same under the TFEU ad TEU.
• Therefore, treaty articles seemed not to be enforceable in Member States’
own national courts – MSs free to determine how these obligations would
take effect in their own respective legal orders.
o Basic position under Public International Law = treaties are
agreements between States, and rights not enforceable in national
courts unless provisions to this effect
VGeL
Supremacy of EU Law
• Van Gend en Loos [1963] laid foundation for Supremacy of EU Law (did
not establish though!)
Principle of Supremacy does not tell you conditions under which EU law is
enforceable in the MSs.
Article 288 provides for regulations: Article 288 says they are to be ‘directly
applicable’.
Direct Effect and Direct Applicability have come to have distinct meanings:
• Capable of direct effect: Politi s.a.s. v Ministry for Finance of the Italian
Republic [1971] + Franz Grad
• Vertical DE
• Horizontal DE: Antonio Munoz y Cia SA v Frumer Ltd [2002]
• DE according to VGeL criteria (for ‘hybrid regulations’, which require
some implementation): Azienda Agricola Monte Arcosu Srl v Regione
Autonoma della Sardegna [2001] – two Regulations required MSs to
define ‘farmer practising farming as his main occupation’ ~ subject in
implementation to taking of measures by MS = no DE
Decisions
Requirements for DE
• Vertical DE only – Article 288: directives only bind member states, and
do not impose obligations on private parties
o Marshall v Southampton & S.W. Hampshire A.H.A
§ Note: even if the State is acting in the capacity of employer,
akin to a private employer, the directive still has DE.
o Confirmed in Dori
§ Advocate-General recommended that Directives should
have DE against private parties, but this was rejected.
• Criteria to work out what is part of the State in Foster v British Gas Plc (at
time of case, British Gas is a nationalised company)
o CJEU, paragraph 18 of Foster: Bipartite test:
§ Emanation of the state =
• Subject to the authority or control of the State; OR
• Has special powers beyond those which result from
the normal rules applicable to relations between
individuals
o CJEU, paragraph 20 of Foster: Tripartite test:
§ Emanation of the state, in any event, if…
• Has been made responsible, pursuant to a measure
adopted by the State, for providing a public service;
AND
• Under the control of the state; AND
• Has special powers beyond those which result from
the normal rules applicable to relations between
individuals
• In paragraph 22 of Foster, the CJEU simply holds that Directive 76/207
may be relief upon against a body which satisfied the tripartite test, with
no mention to the bipartite test.
o British Gas passed tripartite test:
§ Gas Act 1972 – public service by supplying gas
§ Control of Secretary of State (government owned), who
could dictate policies
§ Special monopoly power under which it could prevent
anyone lese from supplying gas in the UK without its
consent
• Problem: which test should be applied in which circumstances?
• Doughty v Rolls Royce Plc [1992] – owned by government, but not a public
service and no special powers ~ therefore, not an emanation of the state.
• Griffin v South West Water Services Ltd [1995] ~ Public service by acting
as a water and sewage undertaker under statute; Secretary of State has
powers over it; special powers e.g. hosepipe bans, making by-laws and
entering land to lay pipes
However, Doughty – Musthill LJ: tripartite in case of same type as Foster, but not
all cases, due to ‘in any event’, which implied that there were some events where
the bipartite test is sufficient: i.e. in non-commercial undertakings where the
government does not have a ‘stake’.
• NUT v St Mary’s School – public service; school has entered state school
system and the Secretary of State and the Local Education Authority were
able to exercise a sufficient degree of control over the school. No special
powers needed.
o Not commercial case, and tripartite test not applied = situation in
UK.
Bipartite test:
• Kampelmann – regulatory authority + public undertakings => for national
court to decide
• Sozialhilfeverband Rohrbach – companies established by local authority =
EoS
Tripartite test:
• Una Film City Revue
o Here, exceptionally, we do not have an individual relying on a
directive in a national court, and referral to CJEU by national court
(preliminary reference) . Una Film brings application directly
before CJEU to challenge validity of a Directive banning tabacco
advertising.
o Therefore, must prove individually concerned by it – they say it
could have DE against them, therefore effected. However, CFI
accepted in principle that the State in Una Film held control, but it
failed the tripartite test, so no DE, therefore ≠ EoS
§ Evidently, under bipartite test, DE would have been
applicable.
• Reiser Internationale – company to maintain and run Austrian toll roads =
EoS
Grand Chamber of CJEU rejected the tripartite test – it had not intended to lay
down a general test in paragraph 20 of Foster.
• They are legal persons governed by public law that are part of the State in
the broad sense such as local or regional authorities; or
• They are subject to the authority or control of a public body; or
• They have been required, by such a body, to perform a task in the public
interest and have been given, for that purpose, such special powers.
Note: Example G4S – if working for state = EoS; but if working for Primark, they
are not.
• Directives can have indirect effect in that their provisions can be used by
national courts in interpreting the meaning and scope of national
legislation
• Case ouline:
o Marleasing wanted declaration of company (La commercial) as
void, because ‘lack of cause’, grounds provided for by Spanish Civil
Code
o La Comercial said unimplemented directive from EU gave
exhaustive list of reasons for nullity – ‘lack of cause’ not one =>
there appears disparity between national law + directive
• National law provisions adopted before or after directive can be
interpreted by national court in line with purpose and result of
directive
• Provisions of an unimplemented directive could be used to interpret
national law
o Controversial b/c this effectively required ‘interpretation’ contrary
to the Civil Code, and led to the limitation in Wagner Miret (below)
• Obligation to interpret national law as a whole in conformity with EU law
– Pfeiffer v Deutsches Rotes Kreuz, Kreisverband Waldshut eV
• Case outline:
o Obligation on MSs to set up institutions to pay wages in case of
company insolvency
o Existing law in Spain: guarantee, but not for senior management
• National Courts required as far as possible to interpret national law in
conformity with wording and purpose of directive (Marleasing).
• Therefore, indirect effect not possible where national law expressly
contradicts provision of EU law
o Confirmed: Criminal Proceedings Against Pupino – no need for
interpretation contra legem
• NB: principle of state liability applied – Spanish State liable to compensate
senior managers for unpaid salaries
UK Indirect Effect
Application in cases
R v Secretary of State for Transport, ex parte Factortame Ltd and Others (esp.
no 2) [1991]