ECJ VAT hearings transferred to General Court

The European Union’s Regulation (EU, Euratom) 2024/2019, issued on April 11, 2024, amends Protocol No. 3 on the Statute of the ECJ. The regulation is part of an effort to improve the efficiency and effectiveness of the EU’s judicial system, particularly in handling preliminary rulings under Article 267 of the Treaty on the Functioning of the European Union (TFEU). The motivation behind these amendments stems from the increasing number and complexity of cases brought before the Court of Justice, which has strained its capacity to deliver timely and high-quality decisions.

Rise in ECJ caseload prompts referral plan

The Court of Justice had previously indicated in a 2017 report that while there was no immediate need for changes in handling preliminary rulings, a future transfer of jurisdiction to the General Court could be considered if the caseload increased. This idea aligns with the intentions of the Treaty of Nice, which aimed to enhance the efficiency of the Union’s judicial system by involving the General Court in preliminary rulings.

Recent statistics have shown a rise in both the number of pending cases and the time taken to resolve them, prompting the need for a reallocation of responsibilities. The primary goal is to ensure that the ECJ can maintain its role in safeguarding the unity and consistency of EU law, especially when dealing with complex and sensitive issues. To achieve this, the regulation proposes transferring some preliminary ruling responsibilities to the General Court in specific areas.

Procedure for ECJ referral of cases to the General Court

1. Transfer of Jurisdiction: The General Court will be given jurisdiction to hear and determine certain preliminary rulings, especially in areas like value-added tax, excise duties, customs codes, tariff classifications, passenger rights, and greenhouse gas emission trading systems. This transfer is expected to reduce the workload on the Court of Justice, allowing it to focus on more complex cases.
2. Criteria for Transfer: The regulation outlines specific criteria for determining which cases should be transferred to the General Court. These include areas where there is already a substantial body of case law, ensuring that the General Court can rely on established precedents.
3. Role of the Court of Justice: Even after the transfer, the ECJ will retain jurisdiction over cases involving primary law, public international law, general principles of EU law, and the EU Charter of Fundamental Rights. This ensures that issues with broad implications for EU law remain under the purview of the highest court.
4. Procedural Adjustments: The regulation introduces changes to ensure that the General Court’s handling of preliminary rulings is consistent with the procedures of the ECJ. This includes designating advocates general in the General Court and allowing for a chamber of intermediate size to handle specific cases.
5. Appeals and Legal Protection: To maintain efficiency in appeal proceedings, the regulation extends the mechanism that determines whether an appeal is allowed to proceed. This is particularly relevant for cases involving decisions of the General Court related to the decisions of independent boards of appeal or disputes over contract performance.
6. Transparency and Public Participation: The regulation emphasizes the importance of transparency in the judicial process. Statements of case or written observations submitted by interested parties will be published on the ECJ’s website unless there are objections. Additionally, the regulation calls for public consultations before adopting significant amendments to the Statute, ensuring broader participation and input from stakeholders.
7. Monitoring and Reporting: The ECJ is tasked with submitting regular reports to the European Parliament, the Council, and the Commission on the impact of the transfer of jurisdiction. These reports will assess whether the goals of improving the speed and efficiency of judicial processes are being met.