European Parliament Fact Sheets

1.3.9.     The Court of Justice and the Court of First Instance

I. COURT OF JUSTICE

LEGAL BASIS

Article 220 (164) of the EC Treaty, Article 31 of the ECSC Treaty, Article 136 of the Euratom Treaty and Articles 226 (169), second paragraph, 227 (170), 230 (173), 232 (175), 234-237 (177-180) and 300 (228) of the EC Treaty.

OBJECTIVES

  • Article 220 (164) of the EC Treaty (Article 31 of the ECSC Treaty and Article 136 of the Euratom Treaty) states that the Court of Justice ‘shall ensure that, in the interpretation and application' of the Treaty ‘the law is observed'. This general definition of its tasks is made more explicit elsewhere in the Treaties (Article 226 (169), second paragraph and Articles 227 (170), 230 (173), 232 (175), 234-237 (177-180) and 300 (228) ECT), in Council regulations which in certain special cases provide for the jurisdiction of the Court of Justice (Article 238 (181) ECT), and in special agreements between the Member States under Article 239 (182) ECT.
  • The powers of the Court of Justice have been defined by international agreements between the Member States, outside the framework of Community law.

ACHIEVEMENTS

The judgments of the Court of Justice of the European Communities have had a major influence on the development of Community law. This is particularly true of relations between the Member States and the Community and the legal protection of individuals.

1.     Responsibilities/powers

  • Disputes between Member States;
  • disputes between the EU and Member States;
  • disputes between the Institutions;
  • disputes between individuals and the EU;
  • opinions on international agreements, Article 300 (228) ECT;
  • preliminary rulings. This is of vital importance for the uniform interpretation of Community law. Preliminary rulings are given when national courts refer disputes pending before them to the Court of Justice under Article 234 (177) ECT, Article 41 of the ECSC Treaty and Article 150 of the Euratom Treaty.

2.     Other responsibilities and powers

In certain special cases the Court of Justice may express an opinion on a matter outside its jurisdiction, as defined in Article 220 (164) of the EC Treaty, for example on external agreements concluded by the EU.

3.     Composition

Following the accession of Finland, Austria and Sweden, the Court of Justice is composed of 15 judges and 8 advocates general (plus one advocate general who remained office for the period from these accessions until 6 October 2000). The duty of the latter is to investigate cases with complete impartiality and independence and to submit their conclusions to the Court.

The judges and advocates general are appointed by common accord of the Governments of the Member States for a term of six years (Article 223 (167) ECT). There is one judge from each Member State. Every three years there is a partial replacement of the judges, but they may be re-appointed.

The judges elect the President of the Court of Justice from among their number for a renewable three-year term (fifth paragraph of Article 223 (167) ECT).

4.    Operation of the Court

The procedure before the Court of Justice is laid down in the Treaties. However, the main provisions are contained in the protocols on the statute appended to the three Treaties and in the rules of procedure of the Court.

Besides the full Court, the Court of Justice has two chambers of five judges and four chambers of three judges. It is assisted in its duties by a registrar, who heads the administration, and it has its seat in Luxembourg.

5.     Significance of the Court's work

The Court of Justice has shown itself to be a very important factor - even a driving force - in European integration.

Its judgment of 15 July 1964 in the Costa/Enel case was fundamental in defining European Community law as an independent legal system taking precedence over national legal provisions. Similarly, its judgment of 5 February 1963 in the Van Gend & Loos case established the principle that Community law was directly applicable in the courts of the Member States.

Other significant decisions concern the protection of human rights (judgment of 14 May 1974 in the Nold case, in which the Court stated that fundamental human rights are an integral part of the general principles of law which it upholds), the right of establishment (judgment of 8 April 1976 in the Royer case, in which the Court upheld the right of a national of a Member State to stay in any other Member State independently of any residence permit issued by the host country), the free movement of goods (judgment of 20 February 1979 in the Cassis de Dijon case, in which the Court ruled that any product legally manufactured and marketed in a Member State must in principle be allowed on the market of any other Member State) and the external jurisdiction of the Community (judgment of 31 March 1971, in the Commission/Council case, which recognised the Community's right to conclude international agreements in spheres where Community regulations apply). More recently, there have been judgments establishing an obligation to pay damages by Member States which have failed to transpose directives into national law or failed to do so in good time. This list is not exhaustive and other judgments relating to social security and competition, for example, are just as important.

The Court also issues rulings on breaches of Community law by the Member States, which is vital for the smooth running of the common market.

One of the great merits of the Court has been its statement of the principle that the Community Treaties must not be interpreted rigidly but must be viewed in the light of the state of integration and of the objectives of the Treaties themselves. This principle has allowed the Community to legislate in areas where there are no specific Treaty provisions, such as the fight against pollution.

6.     Changes following entry into force of the Treaty of Amsterdam

At first the Court's powers in the fields governed by the EU Treaty (the Treaty of Maastricht) under Article L were narrowly confined to Articles K.3(2)(c), third subparagraph, L and S. The Treaty of Amsterdam enlarged the Court's powers, as in the amended Article F, now Article 46(d), which concerns its powers in cases of infringement of Community law as a result of action by the Institutions.

Under Article K.7 (now 35) of the EU Treaty part of cooperation in the field of justice and home affairs (CFJHA) is subject to the — limited — jurisdiction of the Court. This requires the Member States opting to recognise the mandatory jurisdiction of the Court, on the lines of Article 36(2) of the Statutes of the International Court of Justice.

The Court's powers under the new Title IV of the EC Treaty, (Articles 73i (61) et seq.), which transfers ‘Visas, asylum, immigration and other policies related to the free movement of persons' from the intergovernmental purview of the EU Treaty to the field of Community law, is comparable to its powers for upholding and interpreting Community law in other areas. Only Article 68 (73p) ECT, on referral by courts against whose decisions there is no judicial remedy under national law, departs from the terms of Article 234 (177). Measures relating to the maintenance of law and order and the abolition of border controls are excluded from the Court's jurisdiction. The Council, the Commission or a Member State may ask the Court to give a ruling on interpretation of the new Title in the Treaty.

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II. THE COURT OF FIRST INSTANCE

LEGAL BASIS

Articles 225 (168a) of the EC Treaty, 33 of the ECSC Treaty and 40 of the Euratom Treaty.

OBJECTIVES AND ACHIEVEMENT

The Treaty articles referred to above provided for a court of first instance to be established by a unanimous Council decision, at the request of the Court of Justice and after the Council had consulted the Commission and the European Parliament. The Court of Justice requested that such a court be established in a Communication to the Council of 29 September 1987. Having received the favourable opinions of the Commission and Parliament, the Council took a decision to establish a Court of First Instance of the European Communities on 24 October 1988.

The Court of First Instance (CFI)began work on 1 November 1989.

1.     Powers

The CFI exercises at first instance the jurisdiction conferred on the Court of Justice:

  • in disputes between the Communities and their servants referred to in Article 236 (179) of the EC Treaty and in Article 152 of the Euratom Treaty (actions brought by staff);
  • in actions brought against the Commission pursuant to the second paragraph of Article 33 and Article 35 of the ECSC Treaty by undertakings or associations of undertakings which concern individual acts relating to the application of Article 50 and Articles 57 to 76 of that Treaty (ECSC disputes);
  • in actions brought against an Institution of the Communities by natural or legal persons pursuant to the second paragraph of Article 230 (173) and the third paragraph of Article 232 (175) of the EC Treaty. The Council Decision of 24 October 1988 establishing a Court of First Instance restricted the CFI's powers relating to the implementation of the competition rules applicable to undertakings. Following a proposal by the Court of Justice, Council Decision 93/350 Euratom, ECSC, EEC of 8 June 1993 (OJ L 144, 16.6.1993, p. 21) extended the powers of the CFI to all cases brought by private individuals (actions for declaration of failure to act, for annulment and compensation). This principally concerns actions brought by individuals for declaration of failure to act in cases of State aids and trade protection measures (anti-dumping and anti-subsidy measures).

Appeals may be made to the Court of First Instance only on points of law and not on points of fact.

Current changes: A proposal is currently going through the legislative procedure to transfer certain areas of competence from the Court of Justice to the Court of First Instance, solely for some actions for annulment brought by the Member States. This would extend the CFI's jurisdiction to actions for annulment of acts under certain areas of Community law. Within these areas, the transfer is confined to actions on certain kinds of act, excluding in particular actions on legislative acts with general application. The areas in question cover transport policy, competition rules applicable to undertakings, State aid, trade protection measures and funds, financial instruments and action programmes to grant Community financial assistance.

2.     Composition

The Court of First Instance consists of 15 members, who elect a President from among their number for a renewable three-year term.

The CFI normally sits in chambers. Following an amendment (adopted by the Council in 1999) of the decision establishing the Court of First Instance, the CFI may also be constituted by a single judge if the case raises no difficult questions of law or fact, is of minor importance, and there are no other special circumstances. Thus, the reporting judge can act as sole judge in:

  • cases concerning Community officials;
  • actions brought directly by natural or legal persons against decisions by Parliament, the Council, the Commission or the European Central Bank that affect them or concern them directly as individuals, and actions brought directly concerning the Community's non-contractual responsibility, if these cases raise only questions which have already been clarified by established case-law or are part of a series of cases on the same subject, on one of which a judgment has already been delivered;
  • cases which the CFI is competent to judge by virtue of an arbitration clause contained in a contract entered into by the Community or on its behalf.

The procedure followed is that laid down in the rules of procedure adopted on 2 May 1991. As with the Court of Justice, parties other than the Institutions must be represented by a lawyer who has been called to the Bar in one of the Member States.

Current changes: A proposal is currently going through the legislative procedure to increase the number of judges from 15 to 21, to enable the CFI to constitute two additional chambers with three judges each.

ROLE OF THE EUROPEAN PARLIAMENT

In a resolution of 8 July 1992 Parliament supported the proposals to extend the powers of the Court of First Instance. The final text took on board Parliament's proposals that the CFI be given jurisdiction in actions brought by individuals in cases of contracts concluded by the Community where the Court of Justice is held to be competent on the basis of an arbitration clause.

Parliament is pressing to be given a say in the appointment of judges of the Court of Justice and the Court of First Instance.

In its resolution of 3 February 2000, Parliament approved the proposals to transfer some areas of competence from the Court to the CFI and to increase the number of CFI judges from 15 to 21.

16/10/2000