A (in)definition of public service through the State aid rule

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 by Ana Filipa Afonseca, member of CEDU

The State often reveals itself (or is said to be) incapable of pursuing the public interest through its own resources. This is the reason why the economic operators are compensated for the public activities they provide, in the so-called Services of General Economic Interest (SGEI), according to Article 14 of TFEU.

Beyond all the political discussion about the raison d’être of the State underlying this rule, the limit between an incompatible State aid and this compensation is often too thin and unclear.

Naturally, several questions arise about the (good or bad) management of state resources – which the CJEU gradually solves. These issues already go beyond the choice of the private entity or even the overcompensation (which is politically the most contested by citizens and the Court always claims to be against EU law) but they also bring up a discussion on the definition of public service of general economic interest.

The case T-92/11 RENV, which opposed Jorgen Anderson to the European Commission, initiated in Denmark concerning public transportation. In that country there are two systems of transport services: the free traffic system, commercially exploited, and the public traffic system, negotiated with public entities through a public contract.
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Summary of Francovich – 6/90

by José Ricardo Sousa, student of the Master's degree in EU Law of UMinho

Keywords: social policy; liability; directive implementation; failure to fulfil an obligation; compensation.

Court: CJEU | DateNov. 19th 1991 | Case: 6/90 | Applicants: Andrea Francovich vs Italian Republic

Summary: The Directive 80/897 goal was to assure a minimum protection for all European workers in case of bankruptcy of a company. For this purpose, it predicted specific guarantees for the payment of claims relating to debt remuneration. Italian Government didn’t implement the mentioned policy in time. Mr Francovich and Mrs Bonifaci filed in court arguing that it was the Italian Government’s obligation to implement the Directive 80/897 and so they claimed a state compensation. The national court suspended the case and referred the following questions to CJEU:

“Under the system of Community law in force, is a private individual who has been adversely affected by the failure of a Member State to implement Directive 80/897 — a failure confirmed by a judgment of the Court of Justice — entitled to require the State itself to give effect to those provisions of that directive which are sufficiently precise and unconditional, by directly invoking the Community legislation against the Member State in default so as to obtain the guarantees which that State itself should have provided and in any event to claim reparation of the loss and damage sustained in relation to provisions to which that right does not apply?”

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