Press Release: Free movement of capital: Commission calls on Italy to modify law on privatised companies and to apply Court ruling on investment in energy companies

The European Commission on 13 October 2005 decided to ask Italy formally to modify its legislation that provides for the exercise of special powers in privatised companies. The Commission was concerned that the criteria for the exercise of special powers provided in the Decree of 10 June 2004 did not justify the control of the ownership and management structure of the privatised companies concerned and therefore could constitute unjustified restrictions on the free movement of capital and the right of establishment in violation of the EU Treaty rules (Article 56 and 43 respectively). The European Commission has also decided to remind Italy of its obligation to comply with a Court of Justice ruling of 2 June 2005 regarding the law on investment in energy companies.