Facts
- Tullio Ratti manufactured and marketed solvents and varnishes whose labelling complied with two European Community directives governing packaging requirements and product information.
- The Italian Republic failed to transpose those directives within the prescribed implementation period stipulated by the measures.
- Once the deadline passed, Italian authorities instituted criminal proceedings against Mr Ratti for breaching stricter domestic labelling rules that conflicted with the directives’ standards.
Issues
- Whether, after the transposition deadline has expired, a Member State may prosecute an individual under national legislation that conflicts with an unimplemented directive.
- From what point in time an individual may invoke clear, precise and unconditional provisions of an unimplemented directive before national courts.
Decision
- The Court of Justice held that, once the implementation period has lapsed, a Member State in default is precluded from applying incompatible national rules against private parties.
- Clear, precise and unconditional provisions of a directive acquire vertical direct effect immediately upon expiry of the implementation period, regardless of whether the State has adopted implementing measures.
- Because Italy’s domestic labelling legislation conflicted with the directives and the deadline had expired, Mr Ratti was entitled to rely on the directives as a complete defence; consequently, the national prosecution had to be dismissed.
- Direct effect arises only post-deadline, thereby preserving the State’s transposition window and ensuring legal certainty for economic operators during that period.
Legal Principles
- A Member State cannot take advantage of its own failure to implement EU law; it is estopped from enforcing conflicting domestic provisions once the deadline has passed.
- Directive provisions that are sufficiently clear, precise and unconditional confer vertical direct effect against the State and its emanations after expiry of the transposition period.
- National courts must disapply domestic measures incompatible with such directly effective provisions, giving practical effect to the supremacy of EU law.
- Limiting direct effect to the period after the deadline balances the individual’s right to rely on EU law with the Member State’s allocated implementation timeframe and promotes legal certainty.
- Subsequent case-law associates the “Ratti doctrine” with potential State liability for damage caused by non-implementation, reinforcing Member State accountability.
Conclusion
Once the transposition deadline elapses, individuals may invoke clear, precise and unconditional directive provisions before national courts, obliging those courts to disregard conflicting national rules and shielding defendants from enforcement by a defaulting Member State.
