Van Gend en Loos: The Principle of Direct Effect in EU Law

Van Gend en Loos v Nederlandse Administratie der Belastingen (1963) Case 26/62

This landmark case saw the European Court of Justice establish that provisions of the Treaty Establishing the European Economic Community (EEC) were capable of creating legal rights enforceable by both natural and legal persons before the courts of the Community's member states. This principle is now known as direct effect. The case is widely acknowledged as one of the most important, and possibly the most famous, developments in European Union law.

Background of the Case

The case stemmed from the reclassification of a chemical by the Benelux countries into a customs category that entailed higher charges. Preliminary questions were asked by the Dutch Tariefcommissie in a dispute between Van Gend en Loos and the Dutch Tax Authority. The European Court of Justice held that this reclassification breached a provision of the treaty requiring member states to progressively reduce customs duties amongst themselves. Furthermore, the court ruled that this breach was actionable by individuals before national courts, and not just by the member states of the Community themselves.

Action of Infringement (Articles 258-260 TFEU)

The Court of Justice has exclusive competence to determine whether a Member State has fulfilled its obligations under European Union law, encompassing obligations under both primary and secondary legislation.

Two procedures exist for infringement actions:

1. Administrative stage (reported complaint): The State must request this within two months.
2. Litigation stage: A claim by the Commission is submitted to the CJEU, which may then declare that the Member State concerned has breached EU law (direct effect).

Other Key Points of EU Law

• A Member State can legislate in areas classified as shared competence under Articles 3, 4, and 6 of the TFEU.
• Voting in the Council is conducted by qualified majority (double majority).
• The European Parliament must consist of 751 members.
• The EU comprises 7 institutions and 28 member states.
• The European Parliament is the only institution empowered to dismiss a Commissioner.
• The European Commission is accountable to the Court of Justice.
• The legal personality of the EU was recognized in the Treaty of Lisbon.
• The distribution of competences between the EU and its Member States is based on the principle of proportionality.
• The minimum threshold of Member States required for enhanced cooperation is half plus one. Enhanced cooperation is not applicable in the field of education.