The Costa vs. Enel case holds historical significance as it represents a pivotal moment in
the development of European Union law. The dispute emerged in the 1960s when Costa,
an Italian citizen, challenged the legality of Enel's actions before the European Court of
Justice (ECJ).
At its core, the case addressed the supremacy of EU law over national law. Enel, being a
state-owned entity, benefited from financial support from the Italian government, raising
questions about whether such state aid undermined the principles of fair competition
outlined in the Treaty of Rome.
The ECJ's landmark ruling in 1964 established a foundational principle of EU law—the
supremacy of EU law over national law. The court asserted that EU law not only creates
rights and obligations for individuals but also has direct effect, meaning that individuals
can rely on EU law in national courts, even against their own governmen
(Enel won)
The Court of Justice of the European Union (CJEU) plays a crucial role in ensuring the
uniform interpretation and application of EU law. It consists of two main courts: the Court
of Justice and the General Court.
1. Jurisdiction of the Court of Justice (ECJ):
 Preliminary Rulings: National courts can refer questions of EU law to the
ECJ for preliminary rulings if they're unsure about the interpretation or
validity of an EU law.
 Direct Actions: Individuals, companies, or EU institutions can bring cases
directly before the ECJ against EU institutions, member states, or other
entities.
2. Annulment and Appeals:
 General Court (formerly Court of First Instance): Hears actions for
annulment brought by individuals, companies, or, in some cases, member
states against EU institutions' decisions. It also deals with direct actions for
damages.
 Court of Justice: Hears appeals against decisions of the General Court. It
also deals with certain direct actions, particularly those involving member
states.
3. Procedure:
 Annulment Procedure: This allows parties to challenge the legality of EU
acts (regulations, directives, and decisions) before the General Court.
 Appeals Procedure: Appeals can be made to the Court of Justice against
decisions of the General Court. The Court of Justice reviews legal aspects and
ensures uniform interpretation and application of EU law.
4. Grounds for Annulment:
 The action must be based on specific grounds, such as a lack of competence,
infringement of an essential procedural requirement, or a misuse of powers.
The General Court of the European Union plays a crucial role in handling cases related to
annulment brought by individuals and undertakings. Here's an overview:
1. Actions for Annulment:
 Individuals and Undertakings: The General Court allows individuals,
companies, and other undertakings to bring actions for annulment against
certain decisions of EU institutions, bodies, offices, or agencies.
 Decisions Subject to Annulment: Decisions subject to annulment include
regulations, directives, and decisions that directly affect the individuals or
entities bringing the action.
2. Grounds for Annulment:
 Lack of Competence: The General Court can annul a decision if it finds that
the EU institution that adopted it exceeded its powers or acted beyond the
scope of its competence.
 Infringement of Essential Procedural Requirements: If there is a
procedural irregularity that significantly affects the decision-making process,
the General Court may annul the decision.
 Misuse of Powers: Annulment is possible if an EU institution uses its powers
for purposes other than those for which they were conferred.
3. Review of Facts and Law:
 The General Court reviews both the facts and the law in cases brought before
it. It examines whether the decision was based on a correct interpretation
and application of EU law.
4. Actions for Damages:
 In addition to actions for annulment, the General Court can also hear cases
where individuals or undertakings seek compensation for damages resulting
from unlawful actions of the EU institutions.
5. Appeals to the Court of Justice:
 Decisions of the General Court can be appealed to the Court of Justice on
points of law. The Court of Justice ensures the consistent interpretation and
application of EU law.