Solidarity and EC Competition Law

Abstract

Discusses the principle of national solidarity and its relationship to EC competition law. Describes the theoretical foundations for the compact between Member States and the Community, the delineation between the competences of the Community and the Member States, and the choices made by citizens exercising their democratic rights as to the level of services to be provided by the welfare state. Examines European Court of Justice case law on the solidarity principle, limiting the application of EC competition law to Member States' provision and regulation of social services in two ways: (1) where the need for a different distribution of a social service than could be attained on the free market in order to provide that service to citizens on a universal basis justified derogations from the EC Treaty Art.86(2); and (2) where it was legitimate for a Member State to seek to protect public spiritedness or the public ethos in its provision of public services.

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