Under Article 76 (2) of the Euratom Treaty provisions under Title II Chapter IV of the Treaty, measures relating to the supply of ores and nuclear fuels to member states, were to be confirmed for seven years after coming into force of the Treaty on 1st January 1958 or be replaced. The provisions were therefore due to be confirmed or replaced on 1st January 1965. The French Government, from 1965 onwards failed to inform the Supply Agency of transactions regarding the import, supply and processing of enriched uranium and plutonium, in contravention of the said provisions.
The French Government maintained that since the provisions had been neither confirmed nor replaced after the expiry of seven years, they were no longer applicable and could have no effect pending the issue of new provisions.
The Court decided that it cannot be assumed that provisions of the Treaty have lapsed. The Member States had agreed to establish a Community of unlimited duration, having permanent institutions invested with real powers, stemming from a limitation of authority or a transfer of powers from the States to that community. Powers thus conferred could not, therefore, be withdrawn from the Community and restored to the member States except by virtue of an express provision of the treaty.
The Court held that the French Government had failed to fulfill the obligation imposed on it by Title II Chapter IV of the Treaty establishing the European Atomic Energy Community.