Article 16 E.C. and services of general interest: from derogation to obligation?

Abstract

E.L. Rev. 22 Prior to the Treaty of Amsterdam, consideration of services of general economic interest was largely confined to competition law and the application of the derogation in Article 86(2) (ex 90(2)) E.C. However, the insertion of the new Article 16 into the “Principles” part of the E.C. Treaty raises many questions about the legal status, significance and regulation of such services. This article addresses the interpretation of the new provision by analysis of the meaning of universal services in the previous case law, the relevance of other Treaty objectives besides the single market imperative and the evolving relations between Union, State and citizen. It concludes with an interpretation of Article 16 which develops a communautaire obligation to support services of general economic interest extending beyond the purely competition law context.