C-6/90 Francovich v Italy [1991]
Share
C-6/90 Francovich v Italy [1991] stands as a pivotal decision by the European Court of Justice (ECJ), establishing the principle of state liability within the framework of European Union (EU) law. This landmark ruling asserted that EU Member States could be held accountable to compensate individuals who suffered losses due to the state's failure to transpose an EU directive into national law. Commonly referred to as the rule in Francovich, this principle introduced a mechanism for individuals to seek redress for damages resulting from a Member State's non-compliance with EU directives.
The case revolved around the Insolvency Protection Directive 80/987 (now 2008/94/EC), which required EU Member States to enact provisions in their national laws to ensure a minimum level of insurance for employees in case their employers faced insolvency. Mr Francovich and Mrs Bonifaci, along with their colleagues, filed a claim against the Italian state after suffering financial losses because the directive had not been implemented as required.
The ECJ held that the Italian government had breached its obligations under EU law by failing to implement the directive, and consequently, it was liable to compensate the workers for their losses. The court emphasised that damages for such breaches should be available before national courts. To establish state liability based on the failure to implement a directive, claimants needed to prove that the directive conferred specific rights on them, identifiable in its wording, and establish a causal link between the state's non-compliance and the losses suffered.
In its reasoning, the ECJ highlighted the unique legal system created by the Treaty of the European Economic Community, integrated into the legal systems of Member States. It stressed the responsibility of national courts to ensure the full effectiveness of EU rules and protect the rights granted by them. The court underscored that the ability to obtain redress from the Member State was crucial for preserving the effectiveness of EU rules, particularly in cases where state action was required for individuals to enforce their rights before national courts.
The judgment concluded by stating that national procedures should determine how each Member State's liability was to be enforced, recognising the inherent principle that a state must be liable for loss and damage caused to individuals due to breaches of Community law for which the state can be held responsible. Francovich v Italy played a foundational role in shaping the doctrine of state liability in EU law and ensuring the enforceability of individuals' rights under EU directives.
The case revolved around the Insolvency Protection Directive 80/987 (now 2008/94/EC), which required EU Member States to enact provisions in their national laws to ensure a minimum level of insurance for employees in case their employers faced insolvency. Mr Francovich and Mrs Bonifaci, along with their colleagues, filed a claim against the Italian state after suffering financial losses because the directive had not been implemented as required.
The ECJ held that the Italian government had breached its obligations under EU law by failing to implement the directive, and consequently, it was liable to compensate the workers for their losses. The court emphasised that damages for such breaches should be available before national courts. To establish state liability based on the failure to implement a directive, claimants needed to prove that the directive conferred specific rights on them, identifiable in its wording, and establish a causal link between the state's non-compliance and the losses suffered.
In its reasoning, the ECJ highlighted the unique legal system created by the Treaty of the European Economic Community, integrated into the legal systems of Member States. It stressed the responsibility of national courts to ensure the full effectiveness of EU rules and protect the rights granted by them. The court underscored that the ability to obtain redress from the Member State was crucial for preserving the effectiveness of EU rules, particularly in cases where state action was required for individuals to enforce their rights before national courts.
The judgment concluded by stating that national procedures should determine how each Member State's liability was to be enforced, recognising the inherent principle that a state must be liable for loss and damage caused to individuals due to breaches of Community law for which the state can be held responsible. Francovich v Italy played a foundational role in shaping the doctrine of state liability in EU law and ensuring the enforceability of individuals' rights under EU directives.
