Understanding EU law

Principles of EU law

EU law is sui generis, a Latin phrase meaning “of its own kind.” It is distinct from both international and national law, integrating Member States into a cohesive legal system. A key feature of EU law is its ability to have direct effect. This means it can confer rights and obligations directly on individuals and businesses within Member States without the need for national legislation.

The EU Treaties constitute the primary law of the Union. They set out the EU’s objectives, institutional structure, and the scope of its competences. Competence is an EU term referring to the legal power that the EU has in a specific policy area. EU competence is categorised into:

• Exclusive Competence: Only the EU can legislate.
• Shared Competence: Both the EU and Member States can legislate.
• Supporting Competence: The EU can support or coordinate Member State actions without superseding national laws.

Where the EU has competence, EU law holds supremacy over national law, so if there is a conflict between EU law and a Member State’s law, EU law prevails. Table 1 below lists the specific policy areas covered under each category and the corresponding Treaty Article that grant these powers.

Principle of Conferral: The EU can only act within the powers granted to it by the Member States in the Treaties.

Principle of Subsidiarity: In areas of shared competence, the EU should act only if the objectives cannot be sufficiently achieved by Member States alone and would be better accomplished at the EU level.

Types of EU legislation

EU law comprises of primary and secondary legislation. Secondary legislation includes regulations, directives, decisions, recommendations, and opinions.

Regulations are binding in their entirety and are directly applicable in all Member States upon entry into force, without the need for national implementing measures. They have immediate effect and override any conflicting national laws.

Directives must be transposed by Member States into national law by a particular date. While Member States are required to achieve the objectives set by the directive, they have the flexibility to choose the form and methods of implementation. This allows them to tailor the directive’s requirements to fit their legal systems and contexts.

Harmonisation refers to the process of ensuring that laws across the EU align with EU standards. There are two levels of harmonisation under EU law:

• Minimum Harmonisation: Member States must meet the EU’s basic standards but are free to adopt stricter laws if they choose.
• Maximum Harmonisation: Member States must align precisely with the directive, prohibiting stricter measures to ensure uniformity across the EU.

In addition, the method of transposing directives can vary. Some Member States, including Ireland, opt for literal transposition, copying the directive’s wording exactly, while others choose non-literal transposition, adapting the language to better fit their legal systems. The latter can be seen as over-implementation or ‘goldplating.’

Decisions are binding in their entirety upon those to whom they are addressed, which can be Member States, companies, or individuals.

Recommendations and opinions, while influential, are non-binding and serve as guidance rather than enforceable rules.

The recent European Parliament elections have reshaped the legislative agenda, however several significant initiatives from the previous term continue to progress, carrying considerable implications for Ireland. The timelines of these initiatives are illustrated in Figure 2, while the following analysis provides an overview of their broader impact.

European Digital Identity Framework Regulation: This regulation will transform how Irish citizens interact with public and private services by requiring Member States provide a digital identity wallet system. This will be a secure, digital tool that allows individuals and businesses to store and share their personal identification data and credentials for online and offline services. By 2026, Ireland will be required to offer at least one EU Digital Identity Wallet to all citizens, and residents. As shown in the timeline, key dates include its entry into force in May 2024, with full implementation by 2026. Implementing this framework will affect sectors such as banking, healthcare, and government services, requiring coordinated efforts to ensure data protection and technological readiness.

EU AI Act: As AI technologies become more integrated into various sectors, the AI Act will establish compliance requirements for AI developers and users, particularly in high-risk areas like healthcare and finance. As a regulation with direct effect, it requires Member States to provide for the supervision and enforcement of the Act at national level. The phased implementation of this regulation began in August 2024, with key provisions coming into force progressively through 2027.

EU Cyber Resilience Act: This forthcoming EU regulation aims to ensure that all digital products and services sold in the EU are designed with strong cybersecurity measures. It is part of the EU’s Cybersecurity Legislative Framework. The Act will introduce common cybersecurity rules for manufacturers and developers of products with digital elements, covering both hardware and software. Once the proposal is formally adopted in late 2024 and enters into force, Ireland will have 36 months to adapt to the new requirements.

Revised Product Liability Directive: This Directive aims to modernise liability rules for defective products, including digital products and AI systems. It was adopted by the European Parliament in March 2024, with formal adoption by the Council expected late 2024. It must be transposed into Irish law within 24 months of its coming into force and may require amendments to the Liability for Defective Products Act 1991. These amendments may expand the Act to cover digital products and address issues like psychological damage and liability for software manufacturers, enhancing consumer protection.

Platform Workers Directive: The directive aims to improve working conditions for platform workers, defined as individuals who provide services through digital platforms under a contractual relationship. It introduces a presumption that platform workers are employees unless proven otherwise, which could significantly affect Irish law, where these workers are currently treated as self-employed. The directive also regulates the use of algorithms and data processing in platform work, requiring companies to reassess their contracts and working arrangements. The directive was formally adopted by the Council on 14 October 2024. Member States, including Ireland must transpose it by 2026.

These legislative developments highlight the EU’s dynamic regulatory environment. The ongoing impact of the Digital Services Act (DSA), Digital Markets Act (DMA), and the European Green Deal will require changes to Ireland’s approach to digital platforms, environmental policies, data governance, artificial intelligence, and consumer protection. Aligning with EU goals fosters harmonisation across Member States and encourages Ireland’s proactive role in the EU’s future direction. However, it also requires careful management of the challenges involved in implementing new regulations and adapting national laws. This includes the timely and accurate transposition of EU directives into Ireland’s domestic legal system to avoid infringement proceedings and potential penalties. Focusing on compliance and efficient legislative processes will help integrate new regulations effectively while maintaining Ireland’s interests within the EU framework.