The hierarchical theory of norms, which is attributed to Kelsen and his pupil Merkl, states that all legal orders share the same, pyramid like structure, with constitutional law on top and individual legal acts on the bottom. Merkl differentiates two basic hierarchical structure models – hierarchy according to the conditions of law-making and hierarchy according to the derogatory power. In the international law theory, Kelsen preferred monism to explain the relationship between national and international law as opposed to dualism. Yet, when confronted with the hierarchical theory, dualism appears to be the better fit, since national and interna- tional law arise from different sources and even though they are certainly connected in many ways, neither has direct derogatory power over the other, nor constitutes a direct condition of the existence or applicability of the other. However, the above cannot be used to explain the relationship between European and national law – upon viewing the relationship from the hierarchical theory point of view, we come to the conclusion that even though European and national law are not part of the same hierarchical structure according to the conditions of law making, European law has the superior position in the hierarchy according to the derogatory power. This unique position is further supported by the fact that European law is primarily applied by the member states and their bodies, which gives the member states’ courts a certain measure of control. The hierarchical theory therefore proves that European law does truly represent ‘a new legal order of international law’, as the European Court of Justice states.