Uncovering the Veil of Article 86(2) EC

13 Pages Posted: 29 Oct 2007

See all articles by Liyang Hou

Liyang Hou

Shanghai Jiao Tong University (SJTU) - KoGuan Law School


This paper aims to clarify some concepts contained in Article 86(2) of EC Treaty and to synthesize the practice of proportionality principle according to pre-existing ECJ case law. The first two sections will seek for definitions of 'entrustment' and 'Services and General Economic Interest'. Through a case study the following section will dig out how ECJ applied the proportionality test under the framework of Article 86(2) by three specific criteria, failed market principle, universal service obligation principle and economic equilibrium principle. Subsequently, the fourth legal condition contained in Article 86(2) is refuted as a legal condition. And some brief conclusions will be contained in the last section.

Keywords: Services of General Economic Interest, Article 86(2) ECT, Proportionality

Suggested Citation

Hou, Liyang, Uncovering the Veil of Article 86(2) EC. Available at SSRN: https://ssrn.com/abstract=1025407 or http://dx.doi.org/10.2139/ssrn.1025407

Liyang Hou (Contact Author)

Shanghai Jiao Tong University (SJTU) - KoGuan Law School ( email )

Huashan Road 1954
Xuhui District
Shanghai, Shanghai 200030
+86-21-6293-4632 (Phone)

HOME PAGE: http://law.sjtu.edu.cn/TeacherDetail123.aspx

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