Brussels, 03/05/2006 (Agence Europe) - On Wednesday 3 May, the European Commission sent a letter of formal notice to Spain on the subject of its decree, which was adopted in February 2006, further to the announced purchase of the Spanish company Endesa by the German company E.ON. This royal decree, number 4/2006, extends the powers of the national regulator, the Comision Nacional de Energia (CNE), if a stake of more than 10% is bought in the capital of companies in the gas and electricity sectors.
The Commission is concerned that this decree leaves too much discretionary power to the authorities and restrains the free movement of capital and the right of establishment. It recently authorised the purchase operation of Endesa by E.ON (see EUROPE 9179). Spain now has two months to provide an explanation.