Conceptualizing Pure Economic Loss in the European Union: An Observation of Liability Law in the Member States and the European Union

Abstract

'Pure economic loss' – the name points to the fundamental principle of the concept: loss that is only economic in nature and in no way connected to underlying property or physical damage. However, such a clear name obscures the variety of ways this concept is dealt with by the Member States of the European Union. In fact, it is only a minority of legal systems that define this concept at all. The majority does not recognize this category of damage under any name, let alone as an autonomous concept. Yet, pure economic loss holds an important place in tort law and is approached with trepidation by many policy-minded judges all over the EU. It is important for European lawyers to fully understand what pure economic loss is, how it is viewed in different countries, and to understand the implications of European Union law on recovery of pure economic loss. This paper will first address the ways in which one can study a topic approached in such diverse ways throughout the Union. Second it will explain how one can conceptualize this topic in a way that does justice to the EU Member States’ perceptions thereof. Finally, it will touch upon how pure economic loss can be understood within the context of developing European Union law for non-contractual liability of institutions, Member States, and individuals. The conclusion will set out the implications these observations have for the future of pure economic loss recoverability in the EU.