AN ECONOMIC ANALYSIS OF THE EUROPEAN COMMISSION’S PROPOSAL FOR A EUROPEAN ACCOUNT

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Abstract

This paper performs an economic analysis of the European Commission’s proposal for a European-wide preservation order. Bentham’s utilitarianism theory suggests that legislators must take into mind the pleasures and pains associated with any legislation and to form laws in order to create the greatest good for the greatest number. These ideas are reflected in the modern economic theories of welfare economics. But are these principles sufficient to create effective legal rules and achieve justice? Section 2 of this work analyzes the difficulties in obtaining a provisional measure to preserve another party’s assets in another Member State of the European Union (“EU”). Section 3 sets out the Commission’s proposal for a European Account Preservation Order (“EAPO”). Section 4 applies welfare economics principles in order to identify the effect of legal rules related to this proposal, while it proposes an alternative approach to these principles. Lastly, section 4 makes suggestions on the proposal based on this alternative approach.

Keywords: Account, European Commission, Economic Analysis

How to cite this paper: Kyriakides, N. (2013). An economic analysis of the European commission’s proposal for a European account. Risk governance & control: Financial markets & institutions, 3(4), 45-53. https://doi.org/10.22495/rgcv3i4art5