New Legal Effects Resulting from the Failure of States to Fulfill Obligations Under European Community Law: The Francovich Judgement

This Article examines a decision of the Court of Justice of the European Communities that is likely both to ensure much greater protection for the rights of citizens and companies in the European Community, and to bring about a higher level of compliance with Community law by EC Member States. In brief, the Court ruled that in certain circumstances a Member State is liable to pay compensation to private parties if it has failed to implement a directive. To see how the Court of Justice reached this conclusion, and to assess the judgment\u27s importance, it is necessary to summarize previous case law, to explain how this case arose, and to discuss the judgment and its implication