Press Release: Free movement of capital: Commission calls on Spain to modify the law amending the functions of the Spanish electricity and gas regulator

The European Commission has decided to ask Spain formally to modify the legislation that extends the powers of the Comisión Nacional de Energía (CNE), the Spanish electricity and gas regulator. The legislation requires the authorisation of the CNE for the acquisition of over 10% of share capital, or any other percentage resulting in significant influence, in companies engaged in regulated activities or in activities subject to special administrative control. It also requires such authorisation for the acquisition of the assets needed to carry out these activities. The Commission considers that these provisions may unduly restrict the free movement of capital and the right of establishment as enshrined in EC Treaty rules (Article 56 and 43 respectively). The Commission's request takes the form of a 'reasoned opinion', the second stage of the infringement procedure laid down in Article 226 of the EC Treaty. The first stage of the infringement procedure, the 'letter of formal notice', was issued in May 2006 (see IP/06/569). In the absence of a satisfactory reply from Spain within two months of receiving the reasoned opinion, the Commission may decide to refer the matter to the European Court of Justice.