Directives are binding only on the member states to whom they are addressed, which can be just one
member state or a group of them. In general, however, with the exception of directives related to the
Common Agricultural Policy, directives are addressed to all member states.
Implementation When adopted, directives give member states a timetable for the implementation of the intended outcome. Occasionally, the laws of a member state may already comply with this outcome, and the state involved would be required only to keep its laws in place. More commonly, member states are required to make changes to their laws (commonly referred to as
transposition) in order for the directive to be implemented correctly. This is done in approximately 99% of the cases. If a member state fails to pass the required national legislation, or if the national legislation does not adequately comply with the requirements of the directive, the
European Commission may initiate legal action against the member state in the
European Court of Justice. This may also happen when a member state has transposed a directive in theory but has failed to abide by its provisions in practice. If a Member State fails to implement a Directive timely or correctly, the Directive itself becomes binding on the Member States, meaning that parties in proceedings against the state may rely on provisions of the untimely or incorrectly transposed Directive. An example of a case in which the applicant was able to invoke the provisions of an untimely transposed Directive is the
Verkooijen case, in which the European Court of Justice rendered a judgement on 6 June 2000 (case no. C-35/98). The United Kingdom passed a
statutory instrument (SI), the
Unfair Terms in Consumer Contracts Regulations 1994, to implement the EU
Unfair Terms in Consumer Contracts Directive 1993. For reasons that are not clear, the 1994 SI was deemed inadequate and was repealed and replaced by the
Unfair Terms in Consumer Contracts Regulations 1999. The
Consumer Rights Act 2015, a major United Kingdom statute consolidating consumer rights, then abolished the 1999 SI; so presumably the 2015 Act complies with the 1993 EU directive, which remains extant.
Direct effect Even though directives were not originally thought to be binding before they were implemented by member states, the European Court of Justice developed the
doctrine of
direct effect where unimplemented or badly implemented directives can actually have direct legal force. In the important case of
Francovich v. Italy, the ECJ extended the principle of
Van Gend en Loos to provide that Member States who failed to implement a directive could incur liability to pay damages to individuals and companies who had been adversely affected by such non-implementation. ==See also==