Brussels, 24/11/2011 (Agence Europe) - The European Commission decided on Thursday 24 November to refer Italy to the Court of Justice of the EU over its “golden shares”, special powers which Italian law grants the state in strategic companies, including oil company ENI, the energy group ENEL, Telecom Italia and the aerospace and defence company Finmeccanica. The Commission considers such powers to be unjustified restrictions on the free movement of capital and the right of establishment (Articles 63 and 47 of the Treaty on the Functioning of the EU).
The Commission has, however, decided to postpone the execution of referral to the Court by one month. “Latest contacts with the Italian authorities suggest that compliance can be envisaged in the very short term”, the Commission says. New Italian Prime Minister Mario Monti is no stranger to these matters, having been European Internal Market Commissioner from 1995 to 1999, and then Competition Commissioner until 2004.
Italian law says that the state may be granted special powers to safeguard its vital interests should they be under threat. The Italian state has the power to oppose both acquisitions of shares and the conclusion of pacts by shareholders representing a certain proportion of voting rights (5% or a lower percentage if so established). It can also veto certain company decisions, such as a merger or a company split. The Commission considers that these powers “make direct and portfolio investment less attractive and may discourage potential investors in other member states from buying shares in the companies concerned”.
So-called “golden shares” have long been in the sights of the Commission which brought Portugal to book in July of this year. Portugal had to give up its special powers in Galp Energia, Energias de Portugal (EDP) and Portugal Telecom (PT). (LC/transl.rt)