Luxembourg, 26/04/2001 (Agence Europe) - The spokesman for the Court of Justice has published a press release announcing a hearing, that he considers important, in three cases pertaining to the limited participation by legal entities and natural persons in certain companies in France, Portugal and Belgium. The hearing will be held on 2 May, when the Court resumes its activities after the Easter break.
The Commission initiated action against these three Member States as, it states, their regulations, which set limits to shareholding in certain companies, is incompatible with European law and above all with the principle of freedom of establishment and the free movement of capital.
We give below the content of these cases as summarised by the Court's communication service:
- In France: A decree issued in 1993 institutes specific preferential State shares in the public company Elf Aquitaine. The stake held by the State is accompanied by rights whereby approval is required from the Finance Ministry if certain thresholds for capital ownership or voting rights are surpassed by legal entities or natural persons. Approval is also required for plans to sell assets concerning the company in question.
- In Portugal: A law dating from 1990, as well as its rules for application, stipulate the maximum foreign shareholding authorised in each case of privatisation, as well as a prior approval mechanism from the Finance Ministry for the acquisition of shares amounting to over 10% of the capital of companies that are put up for privatisation.
- In Belgium: A royal decree of 1994 establishes preferential shares in the Société nationale de Transport par Canalisations to the advantage of the State. Under this specific action on shareholding, the Energy Minister may raise objection to the transfer of securities to the advantage of legal entities or natural persons if he/she considers that the changes made within the company are detrimental to Belgium's national interests in the energy sector.
No decision is expected on this case until next year.
