Brussels, 28/05/2001 (Agence Europe) - Commission President Romano Prodi has pointed out that he will carefully examine the Italian government decree aimed, in a veiled but obvious way, to limit the influence of the French group EDF in the Montedison group. Approved last Thursday by the Italian government and published last Saturday in the Italian official journal, the government decree has still to be confirmed by Berlusconi's government that will soon take over its functions, and has to be approved by the new Italian parliament. It establishes a ceiling of 2% on the voting rights of foreign monopolies (such as EDF) in the shareholder assemblies of Italian companies in the energy sector. In the case of EDF, this provision thus freezes at 2% the voting rights of the French public company in the Montedison energy group, despite its 20% capital increase (see EUROPE of 23 May, p.8). In Brussels, the European Commission's spokesman pointed out that the Italian government decree is being examined from a dual point of view: its compatibility with European rules on the free movement of capital and with the provisions of the Treaty regarding the right of establishment. He recalled on this occasion how similar this decree is to a recent provision of the Spanish government that limits to 3% the voting rights of majority shareholders, a text that implicitly aims to block the acquisition of the Spanish electricity company Hidrocantábrico by the German company EnBW (in which EDF in fact holds a stake). The Commission opened formal examination procedure concerning the Spanish measure which, like the Italian decision, could hinder the principles of freedom of establishment and the free movement of capital. It has not yet announced its conclusions.
Circles close to the European Commission consider that this problem will no doubt be brought up by President Prodi during meetings that he will have in Paris with French President Chirac and Prime Minister Jospin, in the context of discussions on the liberalisation of energy markets and the application of internal market rules, which are not progressing at the same rate in all Member States. EDF has, for its part, refused to comment on the Italian decision. It simply confirms what it has "always" said, namely that the acquisition of a minority stake in the Montedison capital is not of a "predatory" nature.