The chapter elaborates on the decision of the European court regarding the Francovich case in order to clearly discuss the case law that defines the state liability rules of member states under the EU law. The chapter also discusses the liabilities of private parties in case that they fail to comply with EC rules and there are provisions that are left in the consideration of the national law. An analysis of the relationship between derivatives and state liability rules is also included. The judicial power of the Court of Justice has caused confusion as to whether the European court or the local courts have the jurisprudence to settle cases regarding liabilities and damages.
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