European Union (EU) Law: An Overview
The European Union (EU) law is a special kind of legal system that applies to all 27 countries in the EU. Unlike regular national laws, it has higher authority in certain areas, meaning it can override a country’s own laws when needed. This helps keep rules consistent and brings the different countries closer together, even though they have their own unique legal backgrounds.
Supremacy of EU Law Over National Law
EU law has higher authority than national laws in areas where the EU makes the rules, such as free trade, environmental protection, workers’ rights like equal pay, and consumer safety—this means countries cannot ban imports from other EU members to protect their own businesses, must follow stricter EU pollution limits even if their own rules are weaker, apply EU anti-discrimination protections over looser national ones, and enforce EU product safety standards directly.
Costa v. ENEL (1964) – Why It Matters
In 1964, an Italian man named Costa refused to pay his electricity bill to ENEL, a new state-owned company created after Italy nationalised electricity. He argued this broke EU rules on fair competition.
The European Court of Justice (ECJ) decided that:
- EU law is supreme over national law.
- It comes from a special legal system agreed by all member states.
- National courts must apply EU law uniformly, even if it conflicts with local laws.
This case became the foundation of EU supremacy, showing that EU rules always win over national ones in the 27 member states.
Sources of EU Law
EU law comes from three main sources:
| Source | Description |
|---|---|
| Primary Legislation | The big treaties like the Treaty on European Union (TEU) and the Treaty on the Functioning of the European Union (TFEU) that act as the EU’s constitution. |
| Secondary Legislation | Includes regulations that apply directly in all countries, directives that set goals for countries to achieve in their own way, decisions that bind specific people or states, and non-binding recommendations or opinions. |
| Supplementary Law | General legal principles, international agreements the EU makes, and rulings of the Court of Justice of the EU (CJEU) that explain and enforce these rules. |
Hierarchy of EU Law
- Treaties are supreme and form the constitutional backbone.
- Regulations are directly applicable in all member states without national implementation.
- Directives bind member states to achieve certain results but allow flexibility in implementation.
- Decisions are binding on those to whom they are addressed.
- Case Law of the CJEU ensures uniform interpretation and supremacy of EU law over national law.
Summary of the Hierarchy of EU Legal Sources
| Source of EU Law | Nature and Effect |
|---|---|
| Treaties | Supreme law forming the constitutional backbone of the EU |
| Regulations | Directly applicable in all member states |
| Directives | Binding as to results, flexible as to implementation |
| Decisions | Binding on those to whom they are addressed |
| Case Law of the CJEU | Ensures uniform interpretation and supremacy of EU law |
Fundamental Principles
- Supremacy of EU Law: National law must yield to EU law in case of conflict.
- Direct Effect: Certain EU provisions confer rights directly enforceable by individuals in national courts.
- Subsidiarity and Proportionality: EU acts only where objectives cannot be sufficiently achieved by member states, and measures must not exceed what is necessary.
Policy Areas Covered
EU law governs diverse areas, including:
- Internal Market: Free movement of goods, services, capital, and persons.
- Competition Law: Prevents monopolies and ensures fair competition.
- Environmental Law: Sets standards for sustainability and climate action.
- Social Policy: Protects workers’ rights, equality, and social justice.
- Justice and Home Affairs: Cooperation on asylum, immigration, and criminal law.
Institutions of EU Law
- European Parliament: Represents citizens and co-legislates.
- Council of the European Union: Represents member states’ governments.
- European Commission: Proposes legislation and ensures compliance.
- Court of Justice of the European Union (CJEU): Interprets EU law and ensures uniform application.
Impact on Member States
- EU law becomes part of national legal systems and is enforceable by national courts.
- It promotes integration, peace, and economic stability while balancing sovereignty with collective governance.
Conclusion
European Union law is a unique and coherent legal system built on treaties, legislation, and judicial interpretation. Its defining principles—supremacy over national law, direct effect for individuals, and wide policy coverage—make it the backbone of European integration. By ensuring that EU rules apply uniformly across all member states, it strengthens the single market, protects fundamental rights, promotes fair competition, and supports cooperation in areas like environment, justice, and social policy. Through the work of institutions such as the European Parliament, Commission, Council, and the Court of Justice of the EU, this system balances national sovereignty with collective governance. In doing so, EU law not only shapes the legal and economic framework of Europe but also fosters unity, stability, and progress across the continent.
