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Financial System
LEI - Laboratory for the Economics of Innovation “Franco Momigliano”

Study on the economic impact of the development risk clause as provided by in Directive 85/374 on Liability for Defective Products

Coordinators: Giuseppe Scellato, Alessandro Palmigiano
Researchers: Alessandra Alaimo, Donatella Amuso, Flavia Stella, Andrea Renda
Promoters: Commissione Europea, DG Mercato Interno
The European Commission – Internal Market DG asked Rosselli Foundation to carry out a study that aimed to assess the economic impact of the development risk clause contained in Directive 374/85/EC on liability for damages caused by defective products.
The study, which ended in 2004, consisted of four separate parts: the working of the “development risk clause” in the light of EU regulation and legislation passed by individual member-states; the identification of sectors and situations where consumers may lack any form of protection; the analysis of special regimes and the working of social welfare systems and compensation funds; the analysis of the economic impact of eliminating the “development risk clause” throughout the European Union.
Having drawn up the above analytical model, led by consumer-side considerations, a number of hypotheses and forecasts have been put forward to evaluate the effects on the economic system of any changes to the directive currently in force.
Thanks to the results of the study, the Commission has now set up a permanent working group, of which the Rosselli Foundation is a member, aimed at monitoring the use and trend of the current directive in view of possible review.
 Start Date: 02-Jan-2003
 End Date: 01-Apr-2004
Linked Documents

dev-risk-clause-study_final report PDF