With the Van Gend Loos decision, the European Court of Justice makes it clear that the European Community constitutes a new legal entity under international law, to which member states have transferred a portion of their national sovereign rights for the benefit of the Community. The subjects of this new political system are not only the member states but also the citizens of these states. From this jurisprudence emerges the fundamental principle of the direct effect of Community law. In its decision, the Court of Justice of the European Union enshrines the direct effect of European Union law. This decision states that EU law not only creates obligations for EU member states but also rights for individuals. Therefore, individuals can exercise these rights and directly invoke EU Law in national and European courts, regardless of the criteria of national law.