Italy and Spain must review energy sector rules

Italy and Spain have two months to comply with EC rules regarding the restriction of voting rights and investment in their energy sectors. The European Commission claims that the current restrictions are illegal as they are hampering the free movement of capital and will initiate court action if the situation is not rectified. In the case of Spain, government approval must currently be sought by public-owned or controlled companies who want to acquire at least 3% in a Spanish energy company. In this way, the Spanish government can block foreign investors such as Electricité de France, from owning stakes in Spanish companies. In Italy, any public-owned company which acquires over 2% of a gas or electricity company sees its voting right suspended, thereby protecting it from hostile bidders. Whilst Italy and Spain argue that the laws protect their national interests, the EC claims that they in fact restrict fundamental EU Treaty freedoms.

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• Topics
• Southern Europe