Press Release: Free movement of capital: Commission calls on Spain to apply Court of Justice ruling on privatisation law and to comply with law on investment in companies

The European Commission on 7 July 2005 decided to send Spain a formal request to comply with a European Court of Justice ruling of 13 May 2003, which had found that by maintaining in force certain provisions of its privatisation Law 5/1995, as well as Royal Decrees on Repsol SA, Telefónica de España SA, Telefónica Servicios Móviles SA, Argentaria, Tabacalera SA, and Endesa SA, in so far as they implement a system of prior administrative approval, Spain had failed to fulfil its obligations under EC Treaty rules on the free movement of capital (Article 56). The Commission also decided to send Spain a formal request to comply with Community law on the limitation of voting rights on investment in the energy sector by state-owned companies. The European Commission said it was concerned that certain provisions of the Spanish law in question constituted an unjustified restriction on the free movement of capital, in violation of Treaty rules (Article 56).