Court of Justice of the EU: history, functioning and structure

JUDr. Ondřej Preuss, Ph.D.
11. October 2024
8 minutes of reading
8 minutes of reading
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You don’t have to take your case only to our Czech courts. What exactly does the Court of Justice do, what is its history and structure? Find out in this article.

History of the Court of Justice of the EU

The Court of Justice was established in 1952 by the European Coal and Steel Community (ECSC) Treaty, originally created as a judicial body to ensure legal supervision of compliance with the Treaty and to rule on 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 extended. The Court acquired jurisdiction to rule on disputes within these newly created Communities and over compliance with their laws.

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In 1989, the General Court (Court of First Instance) was set up to relieve the Court of Justice and decide more quickly on certain types of cases, in particular applications brought by individuals and companies (firms) in the fields of competition and public administration.

In 2004, the Civil Service Tribunal was created to deal with disputes between the EU institutions and their staff and to relieve the burden on the General Court. However, this court existed only until 2016, when it was abolished and its powers were transferred back to the General Court. However, the number of judges has been increased from the original 28 (one judge per state) to the current 54 (2 judges per state).

Functions of the CJEU

The Court of Justice of the European Union (CJEU) is the main judicial institution of the European Union and therefore has quite extensive functions. Its main objective is to ensure a uniform interpretation of the law in all Member States. It is also responsible for settling disputes. In practice, it is mainly concerned with:

Interpretation of the law

Interpretation of law is its primary function. The national courts are primarily responsible for applying EU law. Therefore, it can happen that courts in two different countries interpret EU law differently, which should not be the case. The CJEU therefore provides interpretations through preliminary rulings.

The way this works is that national courts in member states ask the CJEU to interpret certain provisions of EU law where they are unsure of their meaning or application. The CJEU’s interpretation is then binding on all national courts.

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Enforcement

The Court of Justice also plays a key role in enforcing EU law, in particular through infringement actions. This action can be brought by the European Commission or by a Member State against another Member State that fails to fulfil its obligations under EU law. If the Court finds that a Member State has infringed EU law, it will order the State to take remedial action. If the state fails to take action, the Court can impose a fine.

Repealing legislation

If a Member State, EU institution or, in certain cases, an individual believes that EU law is in breach of EU treaties or human rights, they can bring an action for annulment. An action for annulment then gives the Court of Justice the power to annul the EU law.

Safeguarding the work of the EU institutions

The Court of Justice rules on actions for failure to act against the EU institutions. These can be brought by a Member State, another EU institution or, in certain cases, by a natural or legal person. An action can be brought if an EU institution fails to comply with its obligations under EU law. This means, for example, if it has a duty to take a decision but fails to do so.

EU institutions can be prosecuted

The Court of Justice also rules on actions for damages. These can be brought by a natural or legal person if they have suffered damage caused by unlawful acts or omissions by EU institutions.

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Composition and structure of the SDEU

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 supreme judicial organ of the European Union.

Composition:

  • 27 judges: each member state has one judge. They are elected for 6 years with the possibility of renewal.
  • 11 Advocates-General: The Advocates-General are responsible for giving independent opinions on cases brought before the Court of Justice. These opinions are not binding but have a significant influence on final decisions. They are also elected for a renewable term of 6 years.
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Features:

  • The Court of Justice rules on preliminary questions referred to it by national courts in the Member States on the interpretation of EU law.
  • It deals with infringement actions against Member States accused of not complying with EU law.
  • It decides on actions for annulment of legal acts adopted by EU institutions.
  • Adjudicates on actions for failure to act by EU institutions and actions for damages for acts or omissions of EU institutions.
  • Ruling on appeals against judgments and orders of the General Court.

General Court

The General Court was set up in 1989 to lighten the load of the Court of Justice and speed up the judicial process.

Composition:

  • 54 judges: the number of judges corresponds to two judges per member state. They are elected for 6 years with the possibility of renewal.
  • The General Court has no Advocates-General, but if the nature of the case so requires, one of the judges may act as Advocate-General.

Functions:

  • The General Court deals with actions brought by natural or legal persons to annul an act of EU bodies which affects them personally (e.g. an action against a decision of the Commission).
  • It decides on actions brought by Member States against the Commission and the Council in the field of State aid and trade defence measures.
  • Deals with actions for damages caused by the institutions and servants of the European Union.
  • Adjudicates on intellectual property actions against the EU Intellectual Property Office and the Community Plant Variety Office.
  • Deals with disputes between EU institutions and staff concerning employment relations and social security.

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

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 to make case law. European law is not based on precedents. Therefore, the Court does not create binding sources of law through its decisions, but its rulings play an important role nonetheless.

Indeed, in practice, the CJEU often bases its decisions on past decisions and therefore the Court’s case law plays an important, if somewhat anecdotal, role. Let us look at two judgments that have significantly shaped EU law:

Van Gend en Loos (1963)

The Dutch government increased the tariff on imports of certain chemicals. This was opposed by Van Gend en Loos, which argued that the tariff increase was contrary to the Treaties establishing the European Economic Community (today’s EU).

The Court of Justice ruled that the EEC Treaties have direct effect, which means that EU law can be applied directly within the legal systems of member states without the need for national measures.

This decision thus reinforced the principle of direct effect of law, the integration of the EU single market and laid the foundations for the future development of European law and its application within all EU Member States.

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Costa vs. Enel (1964)

The Italian Parliament passed a law granting ENEL the exclusive right to produce, distribute and sell electricity. This law de facto restricted competition in the energy sector and favoured a state monopoly. Italian citizen Giovanni Costa objected, refusing to pay his electricity bill and claiming that the law was contrary to EU law.

The Court of Justice confirmed that EU law takes precedence over national law of the Member States – meaning that if a national law conflicts with EU law, it should be considered invalid – and ruled that Member States cannot unilaterally change their national laws to conflict with EU law.

This decision thus confirmed the principle of the primacy of EU law over national law and reinforced the principle of direct effect of EU law. In addition, it has allowed individuals such as Giovanni Costa to go to national courts and invoke rights that derive directly from EU law.

Summary

The Court of Justice was established in 1952 under the European Coal and Steel Community Treatyand has gradually expanded its powers. Today it is the EU’s main judicial institution, with the function of ensuring uniform interpretation of the law and settling disputes between Member States, EU institutions and individuals.

The Court of Justice has two main arms: the Court of Justice and the General Court. The Court of Justice deals with interpreting the law, enforcing the law, repealing legislation, sanctioning the EU institutions and ensuring their functioning. The General Court, set up in 1989, deals mainly with cases involving individuals and businesses.

Case law is an important part of the Court’s work, with key decisions such as Van Gend en Loos (1963) and Costa v Enel (1964) having a significant impact on the application of EU law .

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Author of the article

JUDr. Ondřej Preuss, Ph.D.

Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 10 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.

Education
  • Law, Ph.D, Pf UK in Prague
  • Law, L’université Nancy-II, Nancy
  • Law, Master’s degree (Mgr.), Pf UK in Prague
  • International Territorial Studies (Bc.), FSV UK in Prague

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