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

Roger Van Den Bergh and Hans-Bernd Schäfer ()

Journal of Institutional and Theoretical Economics (JITE), 2000, vol. 156, issue 2, 382-

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.

JEL-codes: K3 L5 (search for similar items in EconPapers)
Date: 2000
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Citations: View citations in EconPapers (2)

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