The exercise of a governmental function had to be distinguished from purely military activity not involving any governmental function.

Moreover, an upward departure may be warranted due to the potential disruption of the governmental function.

The exercise of governmental functions was a core requirement.

In short, the state must have the legal power to fulfil substantial governmental functions as a sovereign state.

The protective principle recognizes that a state may apply its laws to protect vital state interests, such as the state's national security or governmental functions.