European Business Law, the fourth volume in our series, shows how the European authorities simultaneously abolish all restrictions on access to and exercise of economic activities and support the growth of domestic markets, through the harmonization the internal legislation or the enactment of genuinely unified regulations.

European Business Law

Since 1963, the Court of Justice, in its Van Gend En Loos judgment , has recognized a direct effect to some provisions of the Treaty. The provisions which have direct effect form part of the law of the Member States and directly concern their nationals, in whose favor they have created individual rights which domestic courts must protect . Direct effect is reserved for essential provisions, which  …

Treaties

Since 1963, the Court of Justice, in its Van Gend En Loos judgment , has recognized a direct effect to some provisions of the Treaty. The provisions which have direct effect form part of the law of the Member States and directly concern their nationals, in whose favor they have created individual rights which domestic courts must protect . Direct effect is reserved for essential provisions, which set forth a clear, precise and unconditional obligation. Thus, the principle of non-discrimination on grounds of nationality, which contains a clear and unconditional prohibition which is not a positive but a negative obligation, by its very nature, produces direct effects in the legal relationship between Member States and their subjects .

Depending on their characteristics, provisions of primary law result either in a vertical direct effect, or in full direct effect. Vertical direct effect allows an individual to rely on European provisions against a Member State before a national court. Full direct effect makes it possible to rely on a European rule in a dispute between individuals thanks to the combination of vertical and horizontal effect.

The Court of Justice has recognized a vertical direct effect to the following articles of the Treaty:

- Article 18 TFEU which prohibits discriminations on grounds of nationality ;

- Article 28 TFEU which prohibits charges having equivalent effect to customs duties on imports ;

- Article 30 TFEU which prohibits customs duties and charges having equivalent effect ;

- Articles 34 and 35 TFEU which prohibits quantitative restrictions ;

- Article 37 TFEU on the adjustment of commercial monopolies ; 

- Article 63 TFEU on the free movement of capital ;

- Article 110 TFEU on the prohibition of tax discriminations with respect to imported goods ;

The following provisions produce full direct effect:

- Article 45 TFEU on the free movement of workers ;

- Article 49 TFEU on the right of establishment ;

- Articles 56 and 57 TFEU on the free movement of services ;

- Article 157 TFEU on equal pay for male and female workers .

By contrast, the European court denies any direct effect to a number of provisions of the Treaty, which are either too general or in the nature of a program , or require the adoption of European  or national measures  for their implementation. Thus, Article 106(2) TFEU does not directly create rights in favor of individuals insofar as its application involves an appraisal of the requirements, on the one hand, of the particular task entrusted to the undertakings providing services of general economic interest and, on the other hand, the protection of the interest of the EU . Likewise, although a national court may refer a question on the interpretation of Article 107 TFEU to the Court of Justice if it considers that a decision is necessary to enable it to give judgment, however such a court cannot - failing any enforcement regulations within the meaning of Article 109 - decide an action for a declaration that an existing aid which has not been the subject of a decision by the Commission requiring the Member State concerned to abolish or alter it or that a new aid which has been introduced in accordance with Article 108(3) is incompatible .

Case 26/62 Van Gend en Loos v Administratie der Belastingen [1963] ECR 1, LawLex200900001785JBJ.

Case 6/64 Costa v E.N.E.L. [1964] ECR 1194, LawLex200500005402JBJ; Case 59/75 Pubblico Ministero c. Manghera [1976] ECR 91, LawLex200900001976JBJ.

For vertical direct effect: Case 167/73 Commission v France [1974] ECR 359, LawLex200900001585JBJ; 41/74 Van Duyn v Home Office [1974] ECR 1337, LawLex200900001963JBJ; 36/75 Rutili v Ministre de l'intérieur [1975] ECR 1219, LawLex200900001973JBJ; for horizontal direct effect: Case 36/74 Walrave and Koch v Association Union Cycliste Internationale and others [1974] ECR 1405, LawLex200900001964JBJ.

Case 90/76 Van Ameyde v UCI [1977] ECR 1091, LawLex200900002001JBJ; C-208/00 Überseering [2002] ECR I-9919, LawLex200900001113JBJ: the freedom of establishment conferred on companies cannot be limited on the ground that no convention on the mutual recognition of companies has as yet been adopted on the basis of Article 293 EC [repealed].

Regarding vertical direct effect: Case 33/74 Van Binsbergen v Bedrijfsvereniging voor de Metaalnijverheid [1974] ECR 1299, LawLex200900001962JBJ; regarding horizontal direct effect: 36/74 Walrave and Koch v Association Union Cycliste Internationale and others [1974] ECR 1405, LawLex200900001964JBJ; 90/76 Van Ameyde v UCI [1977] ECR 1091, LawLex200900002001JBJ.

For direct discriminations, Case 43/75 Defrenne v SABENA [1976] ECR 455, LawLex200900001987JBJ; 157/86 Murphy v An Bord Telecom Eireann [1988] ECR 673, LawLex200900001579JBJ.

Article 2 EC (current Article 3 TEU) setting forth the tasks of the Union: Case C-339/89 Alsthom v Sulzer [1991] ECR I-107, LawLex201100000299JBJ; Article 151 TFEU referring to the social objectives of the European action: Case C-72/91 Sloman Neptun v Bodo Ziesemer [1993] ECR I-887, LawLex200500004927JBJ.

See Article 10 and 108 EC (current Articles 4 TEU and 130 TFEU): Case 9/73 Schlüter v Hauptzollamt Lörrach [1973] ECR 1135, LawLex200900001959JBJ.

Case 28/67 Molkerei Zentrale Westfalen-Lippe v Hauptzollamt Paderborn [1968] ECR 143, LawLex200900001804JBJ: the provisions of the Treaty which implies the interposition between the European rule and its implementation of legal acts implying discretion in favor of the Member States, have not direct effect; See for Article 106(2) TFEU: Case 10/71 Muller [1971] ECR 723, LawLex200900001435JBJ; Articles 108 and 117 TFEU: Case 6/64 Costa v E.N.E.L. [1964] ECR 1194, LawLex200500005402JBJ: the obligation on Member States to consult or inform the Commission on certain projects prior to their implementation, does not create individual right which the domestic courts must protect.

Case 10/71 Muller [1971] ECR 723, LawLex200900001435JBJ.

Case 78/76 Steinike & Weinlig [1977] ECR 595, LawLex200400002811JBJ.

Case C-92/92 Collins and Patricia Im- und Export v Imtrat and EMI Electrola [1993] ECR I-5145, LawLex200900000312JBJ.

Case 33/70 Spa Sace v Ministero delle finanze [1970] ECR 1213, LawLex200900001950JBJ; Case 18/71 Eunomia di Porro E. C. [1971] ECR 811, LawLex200900001621JBJ.

Case 83/78 Redmond [1978] ECR 2347, LawLex200900002015JBJ; See also Case 74/76 Ianelli v Meroni [1977] ECR 557, LawLex200500005392JBJ: submission to a national court of the review of a measure which was one of the aspects of State aid, whereas the assessment of the compatibility of that State aid is on the Commission alone since the measure is not necessary for the attainment of the object or for the proper functioning of the aid, and infringing the prohibition of Article 34 TFEU.

Case 6/64 Costa v E.N.E.L. [1964] ECR 1194, LawLex200500005402JBJ; 59/75 Manghera and others [1976] ECR 91, LawLex200900001976JBJ.

Case C-163/94 Sanz de Lera and others [1995] ECR I-4821, LawLex200900000644JBJ; C-101/05 Commission v Italy [2007] ECR I-11531, LawLex200900000305JBJ.

Case 57/65 Lütticke v Hauptzollamt Saarlouis [1966] ECR 205, LawLex200900001942JBJ; Case 28/67 Molkerei Zentrale Westfalen-Lippe v Hauptzollamt Paderborn [1968] ECR 143, LawLex200900001804JBJ.

European Business Law

178. Treaties

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Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

178. Treaties

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Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

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au contenu exclusif Livv – juristes d’entreprise