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

Pursuant to Article 288 TFEU, decisions, like directives, are binding in their entirety on the addressee but do not have direct effect like regulations. The binding effect of decisions has however led the European court to admit the possibility, for the undertakings or individuals concerned by their provisions, of relying, in the courts, on provisions contained in decisions of the Council , and subsequently the Commission , where they are clear, precise and unconditional. Decisions produce a vertical effect, i.e. an individual or an undertaking may rely on them against the State, but they are deprived of reversed vertical effect  or horizontal effect, since only the Member States are the addressees thereof .

Lastly, the mere fact that a decision includes a possibility of derogation from some of its clear and precise provisions cannot in itself deprive those provisions of any direct effect, where recourse to that possibility is subject to judicial review .

Case 9/70 Grad v Finanzamt Traunstein [1970] ECR 825, LawLex200900001949JBJ.

Case C-156/91 Hansa Fleisch v Landrat des Kreises Schleswig-Flensburg [1992] ECR I-5567, LawLex200900000562JBJ.

A Member State cannot rely on a decision as against an individual, Case 130/78 Salumificio di Cornuda [1979] ECR 867, LawLex200900001532JBJ: The Member State to which a decision requiring it to abolish protective measures has been addressed, is no longer entitled to rely on such measures as against a trader after the date on which the decision took effect.

Case C-80/06 Carp [2007] ECR I-4473, LawLex200900001180JBJ.

182. Decisions