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Member States Liability for Infringement of the Free Movement of Goods in the EC: An Economic Analysis

Author

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  • Roger Van Den Bergh
  • Hans-Bernd Schäfer

Abstract

In several landmark cases, the European Court of Justice has ruled that member states of the European Union are liable for damages caused by an infringement of European Law if the violation is sufficiently serious. This article analyses the incentive effects of liability rules on member states to avoid discriminatory trade-related regulation under the disguise of consumer, environmental or health protection. These results of the analysis are ambiguous. A rule which automatically triggers liability, in case of a breach of European Law, might lead to over- or under-compliance. Some arguments in favour of liability for obvious misconduct are presented.

Suggested Citation

  • Roger Van Den Bergh & Hans-Bernd Schäfer, 2000. "Member States Liability for Infringement of the Free Movement of Goods in the EC: An Economic Analysis," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 156(2), pages 382-382, June.
    • Handle: RePEc:mhr:jinste:urn:sici:0932-4569(200006)156:2_382:mslfio_2.0.tx_2-g
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    Citations

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    Cited by:

    1. Jef Mot & Michael Faure, 2019. "Public authority liability and the cost of disasters," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 44(4), pages 760-783, October.
    2. Oded, Sharon, 2011. "Inducing corporate compliance: A compound corporate liability regime," International Review of Law and Economics, Elsevier, vol. 31(4), pages 272-283.

    More about this item

    JEL classification:

    • K3 - Law and Economics - - Other Substantive Areas of Law
    • L5 - Industrial Organization - - Regulation and Industrial Policy

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