Administrative Justice and Market Dynamics: The Italian Case and the European Framework.

21 Pages Posted: 31 May 2014

Date Written: May 30, 2014


The recent financial crisis has highlighted once again the irrelevance of political borders between Countries, but also pointed out with alarming clearness the close link between Rules (lack of), Institutions and Economy; between Market dynamics and Law, between Public Liability and protection tools; between Justice Promised (and expected) and Justice Guaranteed.

The borders between Nations and the national and the transnational – and even global – laws and economies have become “porous” and subsequently facing new challenges need to overcome the boundaries between disciplines also in the academic reflection.

Dealing with global phenomena makes us reflect on the consistency of models of justice and systems of the citizen protection against the public administration adopted in single Countries, also taking into account the market dynamics. In the light of the effects of the law and justice systems of justice on the market and the need to evaluate rules also in terms of efficiency and effectiveness, here we want to consider the Italian model of public liability and administrative system of justice as a case of failure to achieve the effectiveness and fullness of protection of the citizen and economic operator on the market.

Proper protection against possibly harmful public administration action is considered a high priority value. Such protection must be effective. In Italy, the provision of a special judge for the public administration aims at ensuring full protection of the citizens and of administrators’ work. In many cases, however, the decisions of the administrative courts end up having a paralyzing effect on the normal course of institutional life. This adds a source of uncertainty for private investment decisions.

This paper focuses on the link between administrative justice and market dynamics and contributes to the current debate on the limits of the Italian public administration system and on possible reforms.

The starting point is given by the emergence of new needs of protection for the market and the citizens that the administrative judge is required to protect. Such needs are universal, but within the European Union fall into the harmonization process of different systems of justice. Some distortions given by Italian regulation and judicial review impacting on the proper protection of the market and the citizens are highlighted in the paper. These distortions have a strong negative impact on the duration of proceedings, who is a symptom of the inefficiency of the judicial system as a whole.

The paper argues in favour of a reform of the system, where the public administration’s “limited liability” model could be replaced by a different one based on a clear and effective action for damages. This aim asks for a different regulation, based on few, clear and effective rules and on a judicial system less litigious and closer to the interests of the citizen and the market, to the pursuit of objectives for speed of judgment, deflation of the litigation, the fullness of protection.

Keywords: Administrative justice, public liability, public administration, citizen protection

JEL Classification: K23

Suggested Citation

Raganelli, Biancamaria, Administrative Justice and Market Dynamics: The Italian Case and the European Framework. (May 30, 2014). Available at SSRN: or

Biancamaria Raganelli (Contact Author)

University of Rome Tor Vergata ( email )

ROME, Lazio

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