Friday, May 4, 2012

Costa v. Ente Nazionale Per L’Eenergia Elettrica (ENEL) case brief

Costa v. Ente Nazionale Per L’Eenergia Elettrica (ENEL)

-Italy nationalized electric production, transferred property to ENEL.  P refused to pay bill, brought suit, stating that nationalization violated italian constitution and articles of treaty.
ANALYSIS -Art. 31(1) provides that Member States shall progressively adjust any “State monopolies of a commercial character” so as to ensure that no discrimination regarding the conditions under which goods are procured and marketed exists between nationals of member states.”
-Member states are under an obligation to refrain (negative obligation) from introducing any new measure which is contrary to the principles laid down in the article.
-Such a clearly expressed prohibition which came into force with the Treaty throughout the community, and so became an integral part of the legal system of the Member States, forms part of the law of those States and directly concerns their nationals, in whose favor it creates individual rights which national courts must protect.  

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