Opinion of the Advocate General — ECLI:EU:C:2005:138
Date: 2005-03-03
Language of the case: Italian
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: Free movement of capital
Procedure: Action for failure to fulfil obligations - successful
Origin: Italy

Summary of the Judgment Free movement of capital — Restrictions — National rules limiting voting rights attaching to holdings of the capital of undertakings operating in the energy sector acquired by certain public undertakings — Not permissible (Art. 56 EC) A Member State which maintains in force rules providing for the automatic suspension of voting rights attaching to holdings in excess of 2% of the capital of undertakings operating in the electricity and gas sectors, where those holdings are acquired by public undertakings not quoted on regulated financial markets and enjoying a dominant position in their own domestic markets, has failed to fulfil its obligations under Article 56 EC. Such rules mean that the category of public undertakings concerned is precluded from participating effectively in the management and control of the undertakings at issue and has the effect of dissuading public undertakings established in other Member States, in particular, from acquiring shares in those undertakings. (see paras 30, 42, operative part)