Effectiveness and coherence in the EU legal order would be better Essay

Effectiveness and coherence in the EU legal order would be better served if provisions in directives were deemed capable of horizontal direct effect - Essay Example This case highlighted that horizontal direct effect is concerned with the relationship of individuals and companies whereas vertical direct effect is concerned with the state’s obligation to ensure its observance and its compatibility with national law thereby allowing actions against the state. (Craig and de Burca, 2003) Directives generally do not have horizontal effect and are usually only enforceable against the state. It was noted in Courage Ltd v Crehan (Case c-453/99) that regulations can have horizontal direct effect. Directives are instructions issued through the EU that specify the result that is to be achieved by the implementation of the Directive. Governments can implement the directive in any manner they choose so long as the end result embodies the spirit of the directive. As directives only specify the expected result they cannot have direct effect. Directives do no create rights. (Craig and de Burca, 2003) There are some occasions where the courts have given direct effect to a directive such as in the case of Grad v Finanzamt Traunstein (Case 9/70) [1970] ECR 825 which was involved with VAT. In this case the European Court of Justice made the ruling that a directive and a decision could have direct effect if they imposed an obligation to achieve a required result. In order for someone to rely on the directives the government’s have to ensure that the directive has been implemented. In cases where the implementation of the directive has passed and the government has not implemented it the courts will have to decide whether the claimant can still rely on the directive. In Pubblico Ministero v. Ratti (Case 148/78) [1979] ECR 1629 the defendant had violated an Italian law in order to comply with an EEC directive on product packaging. The Italian government was seeking to prosecute the defendant for breaking the law. The courts stated in this case that the Italian