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Garcia, Thierry; Peraldi, Xavier --- "European Union and public utility: a virtuous grouping? Lessons from the reorganization of Corsican external transport" [2002] ELECD 12; 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 5

Section Title: European Union and public utility: a virtuous grouping? Lessons from the reorganization of Corsican external transport

Author(s): Garcia, Thierry; Peraldi, Xavier

Number of pages: 16

Extract:

5. European Union and public utility:
a virtuous grouping? Lessons from
the reorganization of Corsican
external transport
Thierry Garcia and Xavier Peraldi
The structure of the European Union is often perceived as one that questions
the principle of public utility, at least in the way it is traditionally viewed in
France, where the phrase `French public utility' (Valette, 2000) has a recog-
nized, different meaning. In its public report of 1994, the Council of State
stressed that `Europe does not institute proceedings against public utility: it
does worse; it obfuscates the concepts of public utility and the existence of the
public utilities'. The fears expressed by the Council of State were founded on
conflicting differences in the French and European approaches toward public
utility. The two approaches seem to be basically opposed to each other
concerning their priorities in criteria for fairness and efficiency in how the
missions of public utility are determined. This resulting antagonism affects not
only the objectives of public utility, but also the practical methods of achiev-
ing them.
In spite of these obvious differences, an analysis of the French and
European approaches toward public utility in the transport sector seems likely
to correct this perception of conflict. In fact, by observing the way in which
the two approaches have developed during recent years it is possible to detect
a marked convergence in their approaches.
This chapter supports an attenuation of the disparities of the two
approaches toward equity and efficiency, and proposes appropriate action that
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