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Ivan Nikčević and Jovana Parlić

Abstract

Based on the interpretation of the European Court of Justice regarding the Treaty provisions, the EU Directive creates only a vertical direct effect. However, through judicial interpretation, the Directive achieves diverse and far-reaching effects. Interpretation of national laws by Member State’s courts, in accordance with the purpose and wording of the directive, can directly affect private individuals and lead to horizontal direct effect. The European Court of Justice’s interpretation of the case based on non- implementation of the directive has created one of the general principles of Community law, in order to mitigate disadvantages and limitations of the doctrine of horizontal direct effect. The interpretation of the directive is gradually expanding the scope of its effects.