Spain | Partial annulment of Spanish rules on state liability

The CJEU submits that the Spanish rules on state liability are incompatible with EU law
Spain | Partial annulment of Spanish rules on state liability
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June 29, 2022

On June 28, 2022, the Court of Justice of the European Union (CJEU) has submitted that the Spanish rules on state liability breach the principle of effectiveness and are incompatible with EU law.

According to the Court, these rules breach the principle of effectiveness because they make reparation for the loss or damage caused subject to the following conditions: (i) the legal provision applied must have been declared contrary to EU law in a judgment given by the CJEU; (ii) the person harmed must have obtained a final court decision dismissing an action brought against the administrative act that caused the loss or damage; (iii) compensation for loss or damage must be sought within one year after publication of the CJEU’s judgment declaring the legislative act contrary to EU law; and (iv) compensation is limited to loss or harm occurring within five years before the date of publication of that decision.

This decision will entail an amendment to national legislation and opens the door to claims from taxpayers.

This Legal Flash summarizes the criteria of the CJEU and highlights its main implications.

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June 29, 2022