Press Release: Freedom of establishment: the Commission calls on France, Italy and Spain to amend their legislation on hydroelectric concessions

The European Commission on 13 July 2005 decided to take France to the European Court of Justice for its legislation giving preference to outgoing concession-holders when concessions for works using hydraulic power come up for renewal. The Commission was planning to do the same in the case of Italy with regard to its national legislation giving similar preference to the outgoing concession-holder and, in the Trentino-Alto Adige Region, to local public bodies. However, the decision concerning Italy was suspended for four months as legislative amendments designed to abolish these preferences were being prepared at national level. Lastly, the European Commission made a formal request to Spain to amend the law which did not provide for a competitive procedure for the award of hydroelectric concessions.