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Costa v ENEL

Flaminio Costa v ENEL (Case 6/64) was a landmark 1964 judgment of the Court of Justice of the European Communities in which the Court established the principle of the primacy of Community law over subsequent national legislation in Member States.^[1] The case originated from an Italian law nationalizing the electricity industry, prompting Flaminio Costa, a shareholder in a affected private company, to refuse payment of his electricity bill to the newly created state monopoly ENEL, arguing the nationalization violated provisions of the EEC Treaty concerning monopolies and freedom of establishment.^[2]^[3] Proceedings in a Milan conciliation court led to a preliminary reference under Article 177 of the EEC Treaty, questioning whether specified Treaty articles produced direct effects and conferred enforceable individual rights.^[1] On 15 July 1964, the Court held that the EEC Treaty constituted a distinct legal system integrated into the legal orders of Member States, entailing a permanent limitation of national sovereignty such that unilateral domestic acts incompatible with Community objectives could not prevail.^[1] This ruling affirmed the direct effect of certain Treaty provisions, enabling national courts to disapply conflicting national laws, and laid the doctrinal foundation for the uniform supremacy of what became EU law, a principle derived from the integrative intent of the Community treaties rather than explicit textual mandate.^[1]^[3]

Historical and Legal Background

Formation of the EEC and Treaty Commitments

The Treaty establishing the European Economic Community (EEC) was signed in Rome on 25 March 1957 by representatives of Belgium, France, Italy, Luxembourg, the Netherlands, and the Federal Republic of Germany, marking the formal commitment of these six states to economic integration in post-war Europe.^[4] ^[5] The treaty entered into force on 1 January 1958 after ratification by all signatories, establishing the EEC as a supranational entity aimed at creating a customs union and a common market through the progressive elimination of internal tariffs, quotas, and barriers to free movement of goods, services, capital, and persons.^[6] ^[7] Under Article 2 of the treaty, member states committed to approximating their economic policies to attain objectives including accelerated economic growth, reduced disparities between regions, and special assistance for less-developed areas, with Italy benefiting from a specific protocol granting access to resources from the European Investment Bank and European Social Fund to address its developmental challenges over a ten-year period.^[8] ^[9] The treaty created key institutions—the European Commission, Council of Ministers, European Parliament (initially an Assembly), and Court of Justice—to implement these goals, with Article 177 empowering national courts to request preliminary rulings from the Court of Justice on the interpretation or validity of EEC law, thereby embedding a mechanism for uniform application across member states.^[4] Article 5 imposed a general duty of loyalty, requiring member states to facilitate achievement of the Community's tasks and to abstain from unilateral measures that could jeopardize the attainment of treaty objectives, setting an implicit foundation for the primacy of EEC legal acts over conflicting national measures, though no explicit supremacy clause was included.^[10] ^[8] These commitments represented a voluntary transfer of sovereignty in economic matters, with Italy, as a founding member, ratifying the treaty on 31 December 1957 and integrating its legal order to align with EEC rules on competition, state aids, and market liberalization, which later formed the basis for challenges like the nationalization at issue in Costa v ENEL.^[11] The absence of a formal supremacy provision in the treaty text meant that the hierarchical superiority of EEC law over national law would be progressively affirmed through judicial interpretation rather than explicit textual mandate.^[10]

Early Developments in EU Law Primacy

The Treaty establishing the European Economic Community (EEC), signed on 25 March 1957 and entering into force on 1 January 1958, created a new legal order distinct from international law, whereby Member States irrevocably transferred sovereign rights to the Community institutions.^[12] This transfer implied that EEC law would take precedence over conflicting national measures, though the Treaty contained no explicit provision on primacy.^[13] Early ECJ jurisprudence in the late 1950s focused primarily on institutional and procedural matters, such as the allocation of competencies between Community institutions, without yet addressing the vertical relationship between EEC and national law.^[14] A pivotal development occurred in NV Algemene Transport- en Expeditie Onderneming van Gend & Loos v Nederlandse Administratie der Belastingen (Case 26/62), decided by the ECJ on 5 February 1963.^[15] In this case, the Court proclaimed the doctrine of direct effect, holding that certain provisions of the EEC Treaty confer rights upon individuals which national courts must protect, thereby integrating EEC law into domestic legal systems.^[16] The judgment characterized the Community as a "new legal order of international law for the benefit of which the states have limited their sovereign rights," establishing that individuals could invoke Treaty provisions directly before national courts without requiring prior national legislation.^[15] This doctrine laid the essential foundation for subsequent assertions of primacy by demonstrating the enforceability of EEC law independently of national implementation.^[17] Direct effect addressed the invocability of EEC norms by private parties but did not yet resolve conflicts with subsequent or entrenched national laws, leaving the full scope of supremacy unresolved.^[18] Prior to 1963, national courts occasionally applied EEC law but often subordinated it to domestic rules, reflecting resistance from Member States wary of ceding sovereignty.^[19] The Van Gend en Loos ruling shifted this dynamic by empowering individuals and national judiciaries to enforce EEC law, prompting the ECJ to confront primacy in the ensuing Costa v ENEL proceedings.^[20] These early steps marked the ECJ's incremental constitutionalization of the EEC, transforming it from a mere economic arrangement into a supranational legal framework.^[21]

Facts of the Case

Italian Electricity Nationalization

In 1962, the Italian Parliament enacted Law No. 1643 on 6 December, nationalizing the production, transmission, and distribution of electrical energy throughout the country.^[22] This legislation created the Ente Nazionale per l'Energia Elettrica (ENEL), a state-owned entity granted exclusive rights to manage the sector, effectively revoking concessions previously held by private companies.^[22]^[23] Prior to nationalization, Italy's electricity industry operated under a fragmented system dominated by around 200 private firms, often organized as regional oligopolies with long-term concessions dating back to the early 20th century.^[24] The law mandated the transfer of all relevant assets, infrastructure, and operations to ENEL, with provisions for state compensation to expropriated private entities based on assessed values.^[25] Implementation began immediately through subsequent decrees, consolidating generation capacity—then primarily hydroelectric and thermal plants—under public control and aiming to extend electrification to underserved rural and southern regions. The nationalization reflected post-World War II efforts to modernize infrastructure and achieve energy self-sufficiency amid Cold War ideological tensions, with proponents arguing it would prevent private monopolistic abuses and ensure equitable access.^[25] Critics, including affected shareholders and liberal economists, contended it undermined market competition and property rights, potentially conflicting with Italy's commitments under the 1957 Treaty of Rome establishing the European Economic Community.^[24] By 1963, ENEL had assumed operations, marking the end of private dominance in a sector that supplied approximately 50 billion kWh annually at the time.^[26]

Costa's Legal Challenge

Flaminio Costa, a Milan-based lawyer and shareholder in Edison, one of the private companies affected by Italy's nationalization of the electricity sector, initiated a legal challenge against Ente Nazionale per l'Energia Elettrica (ENEL) following the enactment of Law No. 1643 on December 6, 1962, which transferred assets to the state monopoly.^[22]^[27] As a result of the nationalization, Costa lost dividend rights from his shares, prompting him to contest the law's validity.^[27] In response to ENEL's issuance of an electricity bill—amounting to approximately 1,925 lire (equivalent to about €22 in modern terms)—Costa refused payment, asserting that he had not entered into any contract with the newly formed entity.^[25]^[28] He also obstructed ENEL personnel from inspecting his energy meter, leading ENEL to initiate proceedings against him in the Milan Small Claims Court (Giudice Conciliatore di Milano) for recovery of the unpaid amount.^[29]^[19] Costa's counterclaim centered on the incompatibility of the nationalization law with the Treaty establishing the European Economic Community (EEC Treaty), specifically citing violations of Articles 31 (prohibiting quantitative restrictions on imports and measures with equivalent effect), 37 (on state monopolies), and related competition provisions that he argued were breached by the creation of ENEL's exclusive rights.^[30]^[31] He maintained that the Italian legislation undermined the Treaty's objectives of establishing a common market free from distortions caused by state interventions.^[22] This challenge, rooted in Costa's dual status as an affected shareholder and consumer, elevated a minor billing dispute into a test of EEC law's enforceability against subsequent national measures, with Costa explicitly seeking a declaration that the nationalization was void ab initio under Community law.^[28]^[25]

Procedural History

Domestic Italian Proceedings

The proceedings originated in late 1963 when Ente Nazionale per l'Energia Elettrica (ENEL), newly established as Italy's state electricity monopoly under Law No. 1643 of 6 December 1962, demanded payment from Milan-based lawyer Flaminio Costa for an outstanding electricity bill amounting to 1,925 lire.^[32]^[24] Costa, a former shareholder in the private Edisonvolta company absorbed by the nationalization, refused payment on the grounds that the law violated Articles 37 (state monopolies), 53 (right of establishment for companies), 93 (state aid), and 102 (general provisions on competition) of the EEC Treaty, claiming these provisions conferred directly effective individual rights overriding the domestic measure.^[32]^[33] ENEL initiated recovery action against Costa in the Giudice Conciliatore di Milano, a lower magistrate's court handling minor civil disputes (case no. RG 1907/63), asserting its legal authority under the nationalization framework to bill and collect for services provided.^[32] Costa countered by objecting to the bill's validity, insisting that EEC Treaty obligations, ratified by Italy prior to the 1962 law, precluded the state's expropriation of private electricity assets without compensation or adherence to Treaty competition rules.^[32] The conciliation judge, bound by Italian procedural norms to apply national law but empowered under Article 177 EEC to seek clarification on Treaty interpretation, suspended proceedings to assess the primacy and direct applicability of the challenged Treaty articles.^[32] On 16 January 1964, the Giudice Conciliatore di Milano formally referred the preliminary question to the European Court of Justice: whether the cited Treaty provisions produced direct effects, thereby creating individual rights that national courts must safeguard against conflicting subsequent domestic legislation.^[32] Paralleling this, Costa's counsel raised the nationalization law's alleged incompatibility with Articles 41 and 42 of the Italian Constitution (on expropriation and equal treatment), prompting review by higher domestic instances, though the conciliation court prioritized the EEC reference.^[23] In a related constitutional challenge to the Enel law's validity, the Corte Costituzionale ruled on 7 March 1964 that the measure complied with Italy's fundamental law and that subsequent national statutes inherently prevailed over prior international treaties, including EEC commitments, absent explicit constitutional incorporation mechanisms.^[23]^[29] This stance, articulated in decision no. 1/1964, reflected the Italian court's deference to parliamentary sovereignty in post-ratification legislation but did not directly halt the Milan proceedings pending ECJ input.^[29]

Preliminary Reference to the ECJ

In the domestic proceedings, following Flaminio Costa's refusal to pay an electricity bill issued by ENEL after the nationalization, the case reached the Giudice Conciliatore di Milano, where Costa argued that the Italian nationalization law conflicted with EEC Treaty provisions on competition and monopolies.^[34] On 16 January 1964, the referring court, the Giudice Conciliatore di Milano (Milan Conciliation Judge), issued an order submitting a preliminary reference to the European Court of Justice (ECJ) under Article 177 of the EEC Treaty, suspending the national proceedings pending clarification on Treaty interpretation.^[34] The questions referred sought to determine whether Articles 102, 93, 53, and 37 of the EEC Treaty produced direct effects capable of creating individual rights enforceable in national courts, specifically in relation to Italian Law No. 1643 of 6 December 1962, which nationalized the electricity sector, and the implementing decrees establishing ENEL as a public monopoly.^[34] This reference arose from the judge's assessment that the national law potentially violated Treaty rules prohibiting state monopolies distorting competition, raising the core issue of whether EEC law could override subsequent national legislation.^[34] Upon receipt of the reference on 16 January 1964, the ECJ registry assigned Case 6/64 and issued a procedural order on 3 June 1964 confirming admissibility despite Italian government objections that the questions lacked relevance to the dispute and that the referring court lacked authority to challenge national sovereignty.^[34] Advocate General Maurice Lagrange delivered his opinion on 25 June 1964, supporting the reference's admissibility and emphasizing the Treaty's creation of a new legal order. The reference thus framed the ECJ's opportunity to address the primacy of EEC law systematically, beyond mere interpretation.^[34]

The ECJ Judgment

Core Holdings

The European Court of Justice (ECJ), in its judgment of 15 July 1964, held that the Treaty establishing the European Economic Community (EEC Treaty) created a distinct legal order comprising not only Member States but also their nationals, for whose benefit the states irrevocably limited their sovereign rights within the spheres covered by the Treaty.^[1] This order integrates into the legal systems of Member States, rendering incompatible national laws inapplicable and binding national courts to enforce it over conflicting domestic provisions.^[1] The Court emphasized that the reciprocal acceptance of the EEC Treaty's terms and spirit precludes Member States from unilaterally prioritizing subsequent national measures, as this would negate the Treaty's objectives, essence, and binding legal effect.^[1] Community law thus maintains its autonomous character and cannot be overridden by internal rules without undermining the uniformity essential to the Community's functioning.^[1]^[35] On direct applicability, the ECJ ruled that while Articles 102 and 93 of the EEC Treaty (concerning concessions and state aid) do not confer enforceable individual rights, Articles 53 (freedom of establishment) and 37(2) (prohibition of state monopolies incompatible with the Treaty) do create such rights, which national courts must safeguard against conflicting national legislation, including the Italian nationalization law at issue.^[1] The preliminary reference from the Italian court was deemed admissible, rejecting arguments that the national measure's posterior enactment invalidated the questions referred.^[1]

Judicial Reasoning on Supremacy

In its judgment of 15 July 1964, the European Court of Justice (ECJ) articulated the supremacy of Community law over national law by distinguishing the EEC Treaty from conventional international agreements. The Court reasoned that, unlike ordinary international treaties, which merely regulate relations between states and lack direct effect within domestic systems, the EEC Treaty established an autonomous legal order upon its entry into force on 1 January 1958.^[32] This new system integrated directly into the legal frameworks of Member States, binding their courts to apply it without mediation by national legislation.^[32] The ECJ emphasized that Member States, through ratification, irrevocably limited their sovereign rights in defined areas, transferring competencies to Community institutions of unlimited duration.^[32] This transfer created a body of law applicable to both states and their nationals, deriving its validity not from national approval but from the Treaty's objectives of economic integration.^[32] Consequently, national courts could not prioritize unilateral domestic measures—such as Italy's Law No. 1643 of 6 December 1962 nationalizing the electricity sector—over this reciprocal Community framework, as doing so would undermine the Treaty's foundational reciprocity among equals.^[32] Central to the reasoning was the principle of uniform application: the executive force of Community law must remain consistent across Member States to achieve the Treaty's goals, including the establishment of a common market free from distortions.^[32] Allowing subsequent national laws to override prior Treaty obligations would jeopardize this uniformity, rendering Community provisions ineffective and subordinate.^[32] The Court thus held that Community law, as an independent source, retains its primacy regardless of the form or timing of conflicting domestic rules, preserving its character as supranational law.^[32] In the instant case, this meant Articles 31, 37, and 53 of the Treaty—prohibiting restrictions on the free movement of capital and monopolies incompatible with the common market—prevailed over the Italian nationalization, which postdated the Treaty by nearly five years.^[32]

Immediate Implications and Reception

Resolution in Italian Courts

Following the European Court of Justice's preliminary ruling on 15 July 1964 affirming the supremacy of EEC Treaty provisions over subsequent national laws, the referring Giudice conciliatore di Milano (Justice of the Peace in Milan) resumed proceedings and applied the principle by disapplying conflicting Italian legislation.^[34] The court specifically held that Law No. 1643 of 6 December 1962, which nationalized the electricity sector and established ENEL as a state monopoly, violated Article 37(2) of the EEC Treaty by introducing discriminatory conditions in the supply and sale of electricity among nationals of Member States.^[23] In its ruling, documented as Costa v Ente Nazionale per l’Energia Electrica (ENEL) 278, the Milan court declared the nationalization law inapplicable to the dispute and exempted Costa from liability for the contested electricity bill of 1,925 Italian lire, effectively dismissing ENEL's claim.^[23] This outcome upheld Costa's defense that no valid contractual obligation existed under an illegally monopolized entity, marking an initial instance of direct judicial enforcement of EU supremacy in an Italian domestic forum despite the law's broader validity in national constitutional terms.^[23]

Initial Academic and Political Reactions

The Italian government, represented in the ECJ proceedings, contested the admissibility of the preliminary reference from the Milan judge, arguing that national courts lacked authority to assess the validity of domestic legislation against EEC Treaty provisions and that any conflicts should be addressed solely through infringement procedures under Articles 169 and 170 of the Treaty.^[24] This stance reflected immediate political resistance in Italy to the ECJ's potential encroachment on national sovereignty, particularly amid the center-left government's defense of the 1962 nationalization law as a sovereign policy choice aligned with Article 11 of the Italian Constitution.^[29] The Italian Constitutional Court's February 24, 1964, ruling—preceding the ECJ decision—had already endorsed the principle of lex posterior derogat legi priori, affirming that subsequent national laws superseded prior international obligations, including EEC law, and deeming Community norms equivalent to ordinary legislation rather than constitutionally superior.^[24] Academically, the judgment received prompt recognition among European legal scholars for forging a direct link between direct effect (as established in Van Gend en Loos ) and supremacy, with analyses as early as 1965 highlighting its role in constructing an autonomous EEC legal order independent of national systems.^[36] However, reception was mixed, as the doctrine's judicial origin—absent explicit Treaty or intergovernmental endorsement—prompted debates over its legitimacy, with some early commentaries questioning whether it imposed an unratified constitutional framework on member states.^[37] In Italy, pro-integration advocates like lawyer Gian Galeazzo Stendardi later emphasized the judgment's empowerment of individuals to uphold Community law against national measures, framing it as a bulwark against state overreach in the nationalization context, though such views gained traction more gradually post-1964.^[24] Politically, beyond Italy's defensive posture, the ruling aligned with the supranational vision of EEC institutions but elicited no documented widespread backlash across member states in 1964, partly due to the nascent stage of integration and limited public awareness of the case's implications.^[38] Italian opposition figures and liberal critics of nationalization, including plaintiff Flaminio Costa, viewed the ECJ's holding as a validation of Treaty protections against unilateral state action, contrasting with the government's policy priorities.^[25] Over time, the absence of immediate Treaty amendments or member state withdrawals underscored tacit acceptance, though it sowed seeds for future sovereignty tensions.^[37]

Doctrinal Significance

Establishment of EU Law Supremacy

In Costa v ENEL (Case 6/64), decided on 15 July 1964, the European Court of Justice (ECJ) formally established the principle of supremacy of European Economic Community (EEC) law—now EU law—over conflicting provisions of national law, including those enacted subsequently and even constitutional norms.^[39]^[23] The Court reasoned that the EEC Treaty of 1957 had created an autonomous legal order distinct from traditional international law, wherein Member States, upon ratification, effected "a transfer of rights and obligations from their domestic legal system to the Community legal system," imposing a permanent limitation on sovereign rights that could not be overridden by unilateral national acts.^[39] This doctrine derived not from explicit Treaty text but from the Treaty's objectives of creating a "Community of unlimited duration, having its own institutions, its own personality, its own legal capacity and capacity of representation on the international plane and, more particularly, real powers stemming from a limitation of sovereignty," necessitating direct applicability and uniform effect across Member States to ensure the Treaty's effectiveness.^[39]^[3] The judgment emphasized that EEC regulations, directives, and Treaty provisions produce direct effects in national legal orders, rendering incompatible domestic rules inapplicable by national courts without the need for prior invalidation by national authorities.^[39] In the specific context of Italy's 1962 nationalization of the electricity sector via Law No. 1643, which Costa argued violated EEC competition rules (Articles 37, 53, and 102, now Articles 37, 49, and 106 TFEU), the ECJ ruled that national courts must prioritize EEC law, as subsequent national legislation could not prevail over prior sovereign transfers under the Treaty.^[39]^[3] This positioned supremacy as a structural necessity for the EEC's integration goals, distinguishing it from mere international treaty obligations where national law typically retains precedence.^[23] Doctrinally, the Costa ruling laid the cornerstone for the EU's constitutionalized legal framework, obligating national judiciaries to disapply conflicting domestic norms and reinforcing the ECJ's role as interpreter of uniform Community rules.^[25] It implicitly rejected the Italian government's contention that national constitutional law prevailed, asserting instead that the EEC's legal system rendered national systems inapplicable in cases of conflict upon the Treaty's entry into force on 1 January 1958.^[39] While not immediately binding in all Member States due to varying national court acceptances, the principle's articulation in Costa enabled subsequent expansions, such as in Simmenthal (1978), where direct disapplication was mandated without awaiting national legislative conformity.^[3] This establishment reflected the ECJ's teleological interpretation, prioritizing the Treaty's supranational aims over fragmented national implementations.^[23]

Integration into Broader EU Legal Framework

The supremacy principle articulated in Costa v ENEL (Case 6/64, judgment of 15 July 1964) integrates into the EU legal framework by establishing the foundational autonomy of EU law as a distinct system capable of overriding conflicting national norms, thereby enabling uniform application across Member States.^[34] This doctrine complements the direct effect principle from Van Gend en Loos (Case 26/62, judgment of 5 February 1963), which renders certain EU provisions directly invocable by individuals before national courts, ensuring EU law's enforceability without mediation by national legislation.^[40] Together, these rulings form the bedrock of EU law's effectiveness, as national courts are obligated to prioritize EU provisions in conflicts, fostering a cohesive internal market under Articles 26 and 114 TFEU.^[41] Subsequent ECJ jurisprudence built upon Costa to embed supremacy within procedural and substantive dimensions of the framework. In Simmenthal II (Case 106/77, judgment of 21 June 1978), the Court mandated that national courts disapply any prior or subsequent domestic law incompatible with EU law, without awaiting legislative amendment, thus operationalizing primacy at the judicial level.^[41] Similarly, Internationale Handelsgesellschaft (Case 11/70, judgment of 17 December 1970) extended supremacy to national constitutional protections, including fundamental rights, affirming that EU law's validity derives from the Treaties' objectives rather than national benchmarks.^[42] These developments reinforced Costa's view of the EU Treaties as creating a "new legal system" with independent sources, integrated into but superior to national orders, as echoed in Article 4(3) TEU's principle of sincere cooperation.^[34] While primacy remains judge-made rather than treaty-textual, its integration gained quasi-codified status via Declaration No 17 annexed to the Treaty of Lisbon (signed 13 December 2007, entered into force 1 December 2009), which states: "The Treaties and the law adopted by the Union on the basis of the Treaties have primacy over the law of Member States, under the conditions laid down by the [ECJ] case law."^[41] This affirmation aligns supremacy with the EU's constitutional architecture, including the preliminary reference mechanism under Article 267 TFEU, which channels national disputes to the ECJ for consistent interpretation.^[43] In practice, this framework has sustained EU law's integrity amid expansions, such as the single market directives and competition rules, by compelling Member States to adapt national systems accordingly.^[23]

Criticisms and Sovereignty Challenges

Erosion of National Sovereignty

The Costa v ENEL judgment asserted that member states' accession to the Treaty of Rome effected a "permanent limitation of their sovereign rights" in areas ceded to the Community, rendering subsequent national laws incapable of overriding prior Treaty obligations.^[32] This principle of primacy meant that national legislatures lost the unilateral authority to repeal or contradict Community law through domestic measures, as the ECJ ruled that "the executive force of Community law cannot vary from one State to another in deference to subsequent domestic laws."^[32] In the case, Italy's Law No. 1643 of 6 December 1962 nationalizing the electricity sector conflicted with Treaty rules on competition and state aid, yet the judgment compelled national courts to prioritize EU provisions, effectively subordinating parliamentary sovereignty to supranational norms.^[24] This doctrinal shift eroded national sovereignty by vesting interpretive and applicative authority in the ECJ, requiring domestic judges to disapply conflicting national legislation without awaiting legislative amendment or constitutional review.^[23] Legal analysts have described it as a transfer of sovereign powers that diminished member states' control over policy domains like energy and competition, transforming the Community from a cooperative framework into one where EU institutions held de facto veto power over national decisions.^[44] The ruling's insistence on the irrevocability of sovereignty transfers—absent mutual agreement among states—prevented unilateral withdrawals or overrides, a constraint later echoed in critiques of the EU's expanding competence claims.^[45] Critics, including some constitutional scholars, contend that the ECJ's inference of absolute primacy from the Treaty's text overstepped, as the original agreements lacked explicit provisions for supremacy and were ratified as international treaties preserving residual state sovereignty.^[44] In Italy, this manifested as a direct clash with the Constitutional Court's prior stance that later national laws could prevail over earlier Community acts, highlighting the judgment's role in diminishing national judicial autonomy and fueling debates over unratified erosions of self-governance.^[35] The decision's legacy thus includes a structural weakening of states' legislative primacy, where EU law's precedence enforces a hierarchical order prioritizing integration over domestic policy flexibility.^[46]

Conflicts with National Constitutional Courts

The Costa v ENEL judgment directly clashed with the Italian Constitutional Court's (ICC) prior ruling on 24 February 1964, which upheld the Enel Law nationalizing the electricity sector (enacted 6 December 1962) and asserted that subsequent national legislation prevails over earlier international treaty obligations, including EEC Treaty provisions, under the lex posterior derogat legi priori principle and Italy's dualist constitutional framework per Article 11 of the Italian Constitution.^[41] The ECJ's 15 July 1964 decision rejected this dualist approach, declaring EEC law an autonomous legal order whose primacy renders conflicting national laws, even posterior ones, inapplicable by national courts to ensure uniform application across Member States.^[23] The ICC initially sidestepped the ECJ's supremacy doctrine; in its 23 June 1965 ruling on the remanded case, it confirmed the Enel Law's constitutionality without engaging Community law conflicts, preserving its stance on national sovereignty.^[41] Full acceptance came gradually, with the ICC in the Granital judgment (No. 170/1984, 8 April 1984) acknowledging EU law primacy over ordinary national legislation but introducing "counter-limits" (controllimiti), reserving review of EU acts incompatible with Italy's supreme constitutional principles such as inviolable human rights or the republican form of government.^[41] This conditional deference highlighted persistent friction, as the ICC positioned itself as ultimate guardian of national identità costituzionale, diverging from the ECJ's unqualified supremacy claim in Costa.^[23] Analogous tensions emerged with the German Federal Constitutional Court (BVerfG), which, while not immediately addressing Costa, responded to its implications in Solange I (2 BvL 52/71, 22 May 1974), conditionally accepting EU law supremacy only "as long as" (solange) the ECJ's jurisprudence did not adequately protect fundamental rights equivalent to Germany's Basic Law guarantees, thereby asserting authority to scrutinize EU acts for ultra vires actions or violations of eternity clauses (Article 79(3) GG).^[47] In Solange II (2 BvR 197/83, 22 October 1986), the BVerfG suspended routine reviews given evolving EU fundamental rights standards but retained competence for identity and proportionality reviews, rejecting absolute primacy and echoing sovereignty concerns rooted in Costa's elevation of EU law over national constitutional norms.^[48] These conflicts underscored a broader doctrinal divide: national constitutional courts, prioritizing sovereignty and Verfassungsidentität, imposed limits on Costa's supremacy to safeguard core constitutional values, prompting ongoing dialogues and occasional standoffs, as seen in later BVerfG rulings like Honeywell (2 BvR 1991/04, 6 September 2010) requiring manifest errors for intervention.^[47] Such reservations reflect empirical resistance to unqualified EU primacy, with courts citing inadequate democratic legitimacy or rights protections at supranational levels, though practical disapplication remains rare absent egregious breaches.^[23]

Democratic Deficit Arguments

Critics of the Costa v ENEL judgment contend that the European Court of Justice's (ECJ) assertion of EU law supremacy inherently amplifies the European Union's democratic deficit by subordinating democratically enacted national legislation to rulings from an unelected supranational judiciary. In the case, decided on July 15, 1964, the ECJ held that nationalization of the electricity sector by Italy's elected parliament conflicted with Treaty of Rome provisions on competition, requiring Italian courts to disapply the conflicting law despite its subsequent enactment.^[49] This judicial override occurred without explicit treaty authorization for supremacy, relying instead on the ECJ's interpretive expansion of the treaties' objectives, which critics describe as judicial fiat lacking direct democratic mandate.^[50] At the time, the European Parliament functioned merely as a consultative assembly with no co-decision powers, underscoring the absence of robust supranational democratic accountability to counterbalance such transfers of authority from national electorates.^[51] The democratic legitimacy gap is rooted in the causal mismatch between voter input and policy output: national parliaments, directly elected and responsive to domestic pressures, lose effective sovereignty over areas preempted by EU law, while EU institutions derive legitimacy primarily from indirect ratification via member state governments rather than pan-European plebiscites or equivalent representation. Empirical indicators include persistently low European Parliament turnout—averaging below 50% since direct elections began in 1979, compared to national averages exceeding 60%—highlighting limited citizen engagement with supranational decision-making.^[52] Scholars applying Westphalian standards of sovereign democracy argue this structure fosters unresponsiveness, as ECJ supremacy insulates EU-derived norms from national electoral corrections, even for post-ratification laws like Italy's 1962 nationalization decree.^[51] While pro-integration academics often minimize this deficit by emphasizing output legitimacy through effective governance, such views reflect institutional biases favoring supranationalism over empirical scrutiny of accountability mechanisms.^[53] Subsequent conflicts with national constitutional courts illustrate the tensions, as these bodies invoke democratic self-determination to qualify absolute supremacy. For example, the German Federal Constitutional Court has ruled that EU acts exceeding conferred competences violate the German Basic Law's democratic principles, asserting a countervailing right to protect Volkssouveränität (popular sovereignty).^[47] In Costa's doctrinal lineage, this reflects a broader critique: unchecked judicial supremacy risks eroding the causal link between citizens' votes and law-making, prioritizing treaty fidelity over ongoing democratic consent, with no empirical resolution through enhanced EU-wide elections or referenda.^[54]

Enduring Impact and Modern Relevance

Influence on EU Expansion and Crises

The supremacy principle from Costa v ENEL (Case 6/64, decided July 15, 1964) underpinned the legal conditions for EU enlargements by requiring acceding states to accept the uniform application of EU law over national provisions, thereby enabling the expansion from six founding members to 27 by ensuring enforceability of the acquis communautaire across diverse legal systems.^[24] Accession treaties, such as those for the 2004 enlargement adding Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia effective May 1, 2004, incorporated commitments to ECJ jurisprudence on primacy, with candidate countries often amending national laws or constitutions to align domestic courts with this doctrine.^[23] This framework facilitated subsequent waves, including Bulgaria and Romania's entry on January 1, 2007, by mitigating risks of fragmentation in the single market, as national legislation could not retroactively override treaty-based obligations.^[38] In EU crises, the Costa doctrine has enabled centralized responses by prioritizing EU measures, though it has also intensified sovereignty disputes when national authorities resisted. During the Eurozone sovereign debt crisis peaking in 2010-2012, supremacy allowed enforcement of EU fiscal rules under the Stability and Growth Pact, with the ECJ upholding mechanisms like the European Stability Mechanism in Pringle (Case C-370/12, November 27, 2012), overriding national budgetary autonomy in bailout recipients such as Greece, which received €110 billion in initial aid on May 2, 2010.^[19] This application ensured compliance with EU-wide stability objectives, preventing unilateral defaults that could cascade across the euro area of 19 members by 2012. In the 2015 migration crisis, which saw over 1 million asylum seekers enter the EU, the principle supported ECJ enforcement of the Dublin III Regulation and mandatory relocation quotas (Council Decision 2015/1601, September 22, 2015), compelling states like Hungary to apply EU asylum law despite domestic referendums rejecting quotas on October 2, 2016.^[29] However, these applications have provoked backlash, highlighting limits to absolute primacy during acute pressures. National constitutional courts, such as Germany's Federal Constitutional Court in its 2009 Lisbon judgment (2 BvE 2/08), have conditionally affirmed Costa's supremacy while reserving ultimate sovereignty checks, a tension evident in rule-of-law crises where Poland's Constitutional Tribunal ruled against certain ECJ primacy assertions in 2021 (Case P 7/20, October 7, 2021).^[23] Such conflicts underscore how the doctrine, while stabilizing expansion and crisis coordination, has fueled debates over democratic legitimacy when EU law constrains national fiscal or border policies amid economic downturns or influxes straining resources exceeding €6 billion in EU migration funding from 2014-2020.^[24]

Post-Brexit and Contemporary Pushback

Brexit represented a definitive rejection of the supremacy principle established in Costa v ENEL, as the United Kingdom formally withdrew from the European Union on January 31, 2020, with the transition period ending on December 31, 2020, thereby terminating the applicability of EU law primacy within UK jurisdiction.^[55] Under section 5(1) of the European Union (Withdrawal) Act 2018, the supremacy of EU law ceased to apply in the UK after "exit day," restoring full parliamentary sovereignty and allowing divergence from retained EU law without the constraints of Costa's doctrine.^[55] This shift was underscored by prior UK judicial developments, such as the Supreme Court's articulation of "conditional primacy," where EU law's precedence depended on parliamentary intent rather than absolute supremacy, a position incompatible with the ECJ's unqualified stance in Costa.^[56] Within the remaining EU member states, contemporary challenges have intensified, exemplified by the German Federal Constitutional Court's (BVerfG) judgment on May 5, 2020, in the PSPP case, which declared the European Court of Justice's (ECJ) prior Weiss ruling ultra vires and inapplicable in Germany.^[57] The BVerfG held that the European Central Bank's Public Sector Purchase Programme violated principles of German constitutional budget autonomy under Article 20(3) of the Basic Law, asserting that national courts retain authority to review EU acts for manifest excess of competences, thereby limiting the ECJ's interpretive monopoly and Costa's full implications.^[57] ^[58] This marked the first instance of a high national court explicitly refusing to apply an ECJ decision, highlighting tensions between EU integration and national fiscal sovereignty.^[58] Poland's Constitutional Tribunal escalated pushback on October 7, 2021, ruling in case K 3/21 that Articles 1 and 19 of the Treaty on European Union were incompatible with the Polish Constitution, particularly provisions safeguarding judicial independence and the primacy of EU law.^[59] The Tribunal emphasized the primacy of the national constitution, declaring that EU treaties could not undermine core elements of Polish sovereignty, such as the organization of the judiciary, in direct contravention of Costa's framework.^[59] This decision prompted EU infringement proceedings, with the European Commission referring Poland to the ECJ in February 2023 for systemic threats to EU law primacy, yet it reflected broader resistance in Central and Eastern Europe against perceived judicial overreach by EU institutions.^[60] Similar assertions of constitutional identity have arisen in Hungary, where courts have sidestepped direct rulings on EU primacy while national policies challenge rule-of-law mechanisms tied to EU funds.^[61] These developments underscore ongoing friction, where national courts invoke sovereignty limits to counter Costa's enduring claim of unqualified EU law superiority.^[62]

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