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The principle of legal certainty as a principle of economic efficiency

Author

Listed:
  • Aurelien Portuese

    (University of Westminster)

  • Orla Gough

    (University of Westminster)

  • Joseph Tanega

    (University of Westminster
    King Abdulaziz University
    University of Bologna
    Grenoble Graduate School of Business)

Abstract

Legal certainty, a feature of the rule of law, constitutes a requirement for the operational necessities of market interactions. But, the compatibility of the principle of legal certainty with ideals such as liberalism and free market economy must not lead to the hastened conclusion that therefore the principle of legal certainty would be compatible and tantamount to the principle of economic efficiency. We intend to analyse the efficiency rationale of an important general principle of EU law—the principle of legal certainty. In this paper, we shall assert that not only does the EU legal certainty principle encapsulate an efficiency rationale, but most importantly, it has been interpreted by the ECJ as such. The economic perspective of the principle of legal certainty in the European context has, so far, never been adopted. Hence, we intend to fill in this gap and propose the representation of the principle of legal certainty as a principle of economic efficiency. After having deciphered the principle of legal certainty from a law and economics perspective (1), we shall delve into the jurisprudence of the ECJ so that the judicial reasoning of the Court as this reasoning proves the relevance of the proposed representation (2). Finally, we conclude in light of the findings of this paper (3).

Suggested Citation

  • Aurelien Portuese & Orla Gough & Joseph Tanega, 2017. "The principle of legal certainty as a principle of economic efficiency," European Journal of Law and Economics, Springer, vol. 44(1), pages 131-156, August.
    • Handle: RePEc:kap:ejlwec:v:44:y:2017:i:1:d:10.1007_s10657-014-9435-2
    DOI: 10.1007/s10657-014-9435-2
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    References listed on IDEAS

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    1. Georgakopoulos, Nicholas L., 1997. "Predictability and legal evolution," International Review of Law and Economics, Elsevier, vol. 17(4), pages 475-489, December.
    2. Francesco Parisi & Vincy Fon & Nita Ghei, 2004. "The Value of Waiting in Lawmaking," European Journal of Law and Economics, Springer, vol. 18(2), pages 131-148, September.
    3. Zamir, Eyal & Medina, Barak, 2010. "Law, Economics, and Morality," OUP Catalogue, Oxford University Press, number 9780195372168.
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    Cited by:

    1. Syamsul & Moch Isnaeni & Endang Prasetyawati, 2021. "Principles of the execution of responsible objects auction principles," Technium Social Sciences Journal, Technium Science, vol. 21(1), pages 508-513, July.

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    More about this item

    Keywords

    Efficiency; Legal certainty; Judicial reasoning; Predictability;
    All these keywords.

    JEL classification:

    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General

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