State Liability in the EEA
The Fundamental Principles of EEA Law: EEA-ities (Baudenbacher (ed.), Springer 2017)
17 Pages Posted: 10 Feb 2017 Last revised: 6 Mar 2020
Date Written: February 1, 2017
In Sveinbjörnsdóttir v. Government of Iceland, the EFTA Court extended the EU principle of state liability from EU law to the European Economic Area.
Consequently, EFTA States are obliged to compensate individuals for damage caused by breaches of EEA law for which they are responsible. The EFTA Court has affirmed that the same three conditions apply to state liability claims than in EU law, but with some possible modifications. Section 2 addresses the justifications for state liability in the EEA and Section 3 explores the criteria for establishing state liability. Section 4 looks at a contentious example of the lack of state liability – the Icesave I case before the EFTA Court.
Keywords: state liability, EFTA, EEA, Iceland, deposit insurance, homogeneity, serious breach
JEL Classification: G21, K39
Suggested Citation: Suggested Citation