Faure, Michael G. --- "Product liability and product safety in a federal system: economic reflections on the proper role of Europe" [2002] ELECD 14; in Marciano, Alain; Josselin, Jean-Michel (eds), "The Economics of Harmonizing European Law" (Edward Elgar Publishing, 2002)

Book Title: The Economics of Harmonizing European Law

Editor(s): Marciano, Alain; Josselin, Jean-Michel

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781840646085

Section: Chapter 7

Section Title: Product liability and product safety in a federal system: economic reflections on the proper role of Europe

Author(s): Faure, Michael G.

Number of pages: 47

Extract:

7. Product liability and product safety in
a federal system: economic reflections
on the proper role of Europe
Michael G. Faure

7.1 INTRODUCTION
In Europe it has been known for a long time that the domains of product safety
and product liability are, for many years now, no longer subjected to only
national legislation. Europe has issued many Directives harmonizing product
safety standards. In addition there is the Council Directive 85/374/EEC of 25
July 1985 on the approximation of the laws, regulations and administrative
provisions of the Member States concerning liability for defective products.
The question that will be addressed in this chapter is whether there are
economic reasons for a harmonization of product safety standards and product
liability. The fact that product safety standards have, to a large extent, been
harmonized, can at first blush easily be understood as an important instrument
to facilitate interstate trade. However, it is less clear why a harmonization of
product liability law was also needed. This harmonization of product liability
is all the more remarkable since Europe has so far taken in fact only one initia-
tive with respect to tort law, which is precisely the domain of product liability.
Other attempts, for example, to harmonize the liability for services, have failed
(see Faure and Hartlief, 1996, pp. 241­2).
The European product liability Directive entered into force when there was
not yet any talk about a subsidiarity principle. According to this principle,
which was introduced by the Single European ...