The Economics of Harmonizing European Law

The Economics of Harmonizing European Law

New Horizons in Law and Economics series

Edited by Alain Marciano and Jean-Michel Josselin

One of the major effects of the continual process of European integration is the growing importance of transnational institutions and the accompanying legal harmonization. Such institutional changes have led to a seemingly irreversible transformation in public decision making, whereby power at the national level is displaced to the European and regional levels. This essential book provides a law and economics analysis of the challenges arising from these shifts in authority.

Chapter 5: European Union and public utility: a virtuous grouping? Lessons from the reorganization of Corsican external transport

Thierry Garcia and Xavier Peraldi

Subjects: economics and finance, law and economics, law - academic, european law, law and economics


Thierry Garcia and Xavier Peraldi The structure of the European Union is often perceived as one that questions the principle of public utility, at least in the way it is traditionally viewed in France, where the phrase ‘French public utility’ (Valette, 2000) has a recognized, different meaning. In its public report of 1994, the Council of State stressed that ‘Europe does not institute proceedings against public utility: it does worse; it obfuscates the concepts of public utility and the existence of the public utilities’. The fears expressed by the Council of State were founded on conflicting differences in the French and European approaches toward public utility. The two approaches seem to be basically opposed to each other concerning their priorities in criteria for fairness and efficiency in how the missions of public utility are determined. This resulting antagonism affects not only the objectives of public utility, but also the practical methods of achieving them. In spite of these obvious differences, an analysis of the French and European approaches toward public utility in the transport sector seems likely to correct this perception of conflict. In fact, by observing the way in which the two approaches have developed during recent years it is possible to detect a marked convergence in their approaches. This chapter supports an attenuation of the disparities of the two approaches toward equity and efficiency, and proposes appropriate action that can be taken by authorities and the public. Such action would not be uniform, as it would be subject...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information