Court of Justice of the European Union: Jurisdiction, Preliminary Rulings, and CJEU Case Law

Quick Overview:

• The Court of Justice of the European Union, or CJEU for short, is the judicial institution of the EU, consisting of the Court of Justice and the General Court.
• It ensures the uniform interpretation and enforcement of European Union law.
• A national court may refer a question to the CJEU for a preliminary ruling if it needs clarification on the interpretation or validity of EU law.
• As a rule, an individual cannot appeal directly to the Court of Justice instead of a Czech court.
• Starting October 1, 2024, the General Court will also rule on certain preliminary questions in specific areas.

Are you involved in a dispute in which European Union law may play a role? We will assess whether EU law can be applied in your favor and what procedural steps are available.

History of the Court of Justice of the EU

The Court of Justice was established in 1952 under the Treaty establishing the European Coal and Steel Community (ECSC). It was originally established as a judicial body to ensure legal oversight of compliance with this treaty and to adjudicate disputes between member states and the institutions of the European Coal and Steel Community.

With the 1957 Treaties of Rome, which established the European Economic Community (EEC) and Euratom, the Court’s powers were expanded. The Court of Justice gained the authority to rule on disputes within these newly established Communities and on compliance with their legal regulations.

In 1989, the General Court (Court of First Instance) was established to relieve the Court of Justice and to adjudicate more quickly on certain types of cases, particularly actions brought by individuals and companies in the areas of competition and public administration.

In 2004, the Civil Service Tribunal was created to resolve disputes between EU institutions and their employees and to relieve the overburdened General Court. However, this court existed only until 2016, when it was abolished and its powers were transferred back to the General Court. The number of judges, however, increased from the original 28 (one judge per country) to the current 54 ( two judges per country).

What Is the Court of Justice of the European Union and What Does the Acronym CJEU Stand For?

The Court of Justice of the European Union, or CJEU, is not just a single court. It is the judicial institution of the European Union, consisting of two judicial bodies: the Court of Justice and the General Court. The Court of Justice primarily deals with preliminary rulings, actions brought against Member States, and appeals against decisions of the General Court. The General Court primarily rules on direct actions brought by individuals, companies, and, in some cases, Member States against EU institutions.

Functions of the Court of Justice of the EU

The Court of Justice of the European Union (CJEU) is the principal judicial institution of the European Union and therefore has relatively extensive functions. Its main objective is to ensure a uniform interpretation of the law across all Member States. It is also responsible for resolving disputes.

How a Preliminary Ruling from the CJEU Works

A preliminary ruling from the CJEU allows a Czech or other national court to request a binding interpretation of European Union law or an assessment of the validity of a Union act. However, the CJEU does not decide the dispute between the parties itself. After the question is answered, the national court continues the proceedings and applies the interpretation provided to the specific case.

A party to the proceedings cannot submit a preliminary ruling request to the CJEU on its own. However, it may propose to the court that it submit such a request and explain why an interpretation of EU law is necessary to resolve the dispute. A court whose decision is no longer subject to appeal is obligated to refer the question to the CJEU if the specified conditions are met.

As of October 1, 2024, the General Court may also rule on preliminary questions in six precisely defined areas. These include, in particular, VAT, excise taxes, customs rules, the tariff classification of goods, certain passenger rights, and emissions trading. However, all requests will continue to be sent to the Court of Justice, which will determine whether the matter falls within its jurisdiction or that of the General Court.

In practice, there is a misconception that a party to the proceedings can submit a preliminary ruling request to Luxembourg on their own. This is not the case—only a court may submit such a request. A lawyer’s primary task is therefore to demonstrate to the Czech court that an interpretation of a specific EU rule is truly necessary for resolving the dispute.

Enforcement of the Law

The Court of Justice also plays a key role in enforcing EU law, particularly through infringement proceedings. Such proceedings may be initiated by the European Commission or by a Member State against another Member State that is failing to fulfill its obligations under EU law. If the Court of Justice finds that a Member State has violated EU law, it orders the state to take corrective measures. If the state fails to take such measures, the Court may impose a fine.

Challenging Legislation

If a Member State, an EU institution, or, in certain cases, an individual believes that an EU legal act is contrary to the EU Treaties or human rights, they may file an action for annulment. Based on an action for annulment, the Court of Justice then has the authority to annul that EU legal act.

Ensuring the Functioning of EU Institutions

The Court of Justice rules on actions for failure to act brought against EU institutions. Such actions may be brought by a Member State, another EU institution, or, in certain cases, a natural or legal person. An action may be brought if an EU institution fails to fulfill its obligations under EU law—for example, if it is required to adopt a specific decision but fails to do so.

Sanctions Against EU Institutions

The Court of Justice also rules on actions for damages. These may be brought by a natural or legal person who has suffered damage caused by the unlawful acts or omissions of EU institutions.

Composition and Structure of the CJEU

The Court of Justice of the European Union comprises two main judicial bodies— the Court of Justice and the General Court:

The Court of Justice

The Court of Justice is the highest judicial body of the European Union.

Composition:

• 27 judges: Each Member State has one judge. They are elected for a term of 6 years, which may be renewed.
• 11 Advocates General: The Advocates General are tasked with providing independent opinions on cases brought before the Court of Justice. These opinions are not binding but have a significant influence on the final decisions. They are also elected for a term of 6 years, renewable.

Functions:

• The Court of Justice rules on preliminary questions referred to it by national courts of Member States regarding the interpretation of EU law.
• It hears infringement actions against Member States accused of failing to comply with EU law.
• It rules on actions for annulment of legal acts adopted by EU institutions.
• It hears actions for failure to act by EU institutions and actions for damages resulting from acts or omissions by EU institutions.
• It rules on appeals against judgments and orders of the General Court.

The General Court

The General Court was established in 1989 to relieve the Court of Justice and expedite judicial proceedings.

Composition:

• 54 judges: The number of judges corresponds to two judges per Member State. They are elected for a term of 6 years, which may be renewed.
• The General Court does not have Advocates General, but if the nature of the case requires it, one of the judges may perform the role of Advocate General.

Functions:

• The General Court hears actions brought by natural or legal persons seeking the annulment of acts of EU institutions that affect them personally (e.g., an action against a Commission decision).
• It rules on actions brought by Member States against the Commission and the Council in the areas of state aid and trade defense measures.
• It hears actions for damages caused by the institutions and staff of the European Union.
• It rules on actions concerning intellectual property brought against the European Union Intellectual Property Office and the Community Plant Variety Office.
• It resolves disputes between EU institutions and staff concerning employment relationships and social security.

Its decisions may be appealed to the Court of Justice within two months by way of a cassation appeal.

Case Law of the Court of Justice of the EU

One of the most important functions of the Court of Justice of the European Union is the development of case law. European law is not based on precedent. Thus, the Court of Justice does not create binding sources of law through its decisions; nevertheless, its decisions play an important role.

In practice, the Court of Justice of the EU often bases its decisions on past rulings; therefore, the Court’s case law plays a significant, albeit somewhat unofficial, role. Let’s look at two landmark cases that have significantly shaped European Union law:

Van Gend en Loos (1963)

The Dutch government raised the customs tariff on imports of certain chemicals. Van Gend en Loos challenged this, arguing that the tariff increase violated the Treaties establishing the European Economic Community (today’s EU).

The Court of Justice ruled that the Treaties establishing the EEC have direct effect, meaning that EU law can be applied directly within the legal systems of Member States without the need for national measures.

This decision thus strengthened the principle of the direct effect of EU law, promoted the integration of the EU’s single market, and laid the foundations for the future development of European law and its application across all EU Member States.

Costa v. Enel (1964)

The Italian Parliament passed a law granting ENEL the exclusive right to produce, distribute, and sell electricity. This law effectively restricted competition in the energy sector and favored a state monopoly. An Italian citizen, Giovanni Costa, challenged this by refusing to pay his electricity bill and arguing that the law was contrary to EU law.

The Court of Justice confirmed that EU law takes precedence over the national law of member states —meaning that if national law conflicts with EU law, it should be deemed invalid—and ruled that Member States cannot unilaterally amend their national laws in a way that conflicts with EU law.

This decision thus reaffirmed the principle of the primacy of EU law over national law and reinforced the principle of the direct effect of EU law. Furthermore, it enabled individuals, such as Giovanni Costa, to bring cases before national courts and invoke rights derived directly from EU law.

Summary

The Court of Justice of the European Union (CJEU) consists of the Court of Justice and the General Court. Their role is to ensure the uniform interpretation, observance, and application of EU law. The Court of Justice rules primarily on actions brought against Member States, appeals, and preliminary rulings requested by national courts. As of October 1, 2024, the General Court may also rule on preliminary rulings in six specified areas. An individual cannot submit a preliminary question on their own, but may propose that a Czech court refer such a question. The case law of the CJEU, including the Van Gend en Loos and Costa v. ENEL judgments, has fundamentally shaped the principles of direct effect and the primacy of EU law.