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A Critical Account of Article 106(2) TFEU - Government Failure in Public Service Provision (Paperback)
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A Critical Account of Article 106(2) TFEU - Government Failure in Public Service Provision (Paperback)
Series: Hart Studies in Competition Law
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A Critical Account of Article 106(2) TFEU: Government Failure in
Public Service Provision offers a sceptical perspective on how EU
law applies to public services. Article 106(2) provides that other
Treaty rules may be disapplied in order to sustain a Service of
General Economic Interest (SGEI). The rhetorical presentation of
Article 106(2) is as a strict exception. As a result, Article
106(2) is often presented as a threat to Europe's public service
tradition. This book challenges those shibboleths by using the
concept of government failure. It is concerned with instances of
government intervention that are unnecessary, generate avoidable
inefficiencies, or that can be bettered so as to realise general
interest goals more efficaciously. As an element of the government
failure critique, a market feasibility test incorporating the
concept of market failure is used to expose laxity in the review of
general interests under Article 106(2). Complementing that, the
process of disapplying other Treaty rules under Article 106(2) is
shown to have evolved from being strict to being highly indulgent
of SGEI providers, with a relatively recent but only partial
correction post Altmark. Overall, the strict exception label for
Article 106(2) does not hold. Moreover, it is contingent and
presents no legitimate general interest related threat to the
organisation and delivery of public services. A comprehensive
re-orientation of Article 106(2) on issues of proof is required, as
is greater reliance on market counterfactuals, and much more
careful separation of objectives and means in SGEI operation and
design. Through these measures, the toleration of government
failure can be stemmed and Article 106(2)'s contingency reduced.
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