Failure to apply EU law

European Parliament (photo) (Photo: www.civitas.org.uk/eufacts/FSINST/CIT3.htm)

Generally, the EU has two different types of law: regulations and directives.

• Regulations apply directly (direct effect) in all Member States. It is not permitted to transformed them into national laws.
• Directives must be transformed into national laws to have effect. Member States are bound to carry this out. If they do not, other Member States or the Commission may introduce an action at the EU Court for a so-called failure to fulfil an obligation.

The EU Court also decided that certain directives have direct effect even if they have not been transformed into national law. Citizens can thus have rights according to an EU directive and be liable to compensation from the Member State that failed to transform it into national law. This was decided by the EU Court in the important Francovich case.

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See also Factortame case.