Uncovering the Veil of Article 86(2) EC
13 Pages Posted: 29 Oct 2007
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
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