Case C-205/06: Judgment of the Court (Grand Chamber) of 3 March 2009 — Commission of the European Communities v Republic of Austria (Failure of a Member State to fulfil obligations — Infringement of the second paragraph of Article 307 EC — Failure to adopt appropriate measures to eliminate the incompatibilities with the EC Treaty of the bilateral agreements entered into with third countries prior to accession of the Member State to the European Union — Investment agreements entered into by the Republic of Austria with the Republic of Korea, the Republic of Cape Verde, the People’s Republic of China, Malaysia, the Russian Federation and the Republic of Turkey)
Date: 2009-03-03
Institutions: Court of Justice
Subjects: Austria, European Commission, action for failure to fulfil an obligation, approximation of laws, bilateral agreement, free movement of capital, investment, third country








C_2009102EN.01000201.xml










1.5.2009   


EN


Official Journal of the European Union


C 102/2





Judgment of the Court (Grand Chamber) of 3 March 2009 — Commission of the European Communities v Republic of Austria
(Case C-205/06) (1)

(Failure of a Member State to fulfil obligations - Infringement of the second paragraph of Article 307 EC - Failure to adopt appropriate measures to eliminate the incompatibilities with the EC Treaty of the bilateral agreements entered into with third countries prior to accession of the Member State to the European Union - Investment agreements entered into by the Republic of Austria with the Republic of Korea, the Republic of Cape Verde, the People’s Republic of China, Malaysia, the Russian Federation and the Republic of Turkey)
2009/C 102/02
Language of the case: German

Parties


Applicant: Commission of the European Communities (represented by: H. Støvlbæk, B. Martenczuk and C. Tufvesson, acting as Agents)

Defendant: Republic of Austria (represented by: C. Pesendorfer and G. Thallinger, acting as Agents)

Interveners in support of the defendant: Federal Republic of Germany (represented by: M. Lumma and C. Blaschke, acting as Agents), Republic of Lithuania (represented by: D. Kriaučiūnas, acting as Agent), Republic of Hungary (represented by: J. Fazekas, K. Szíjjártó and M. Fehér, acting as Agents), Republic of Finland (represented by: A. Guimaraes-Purokoski and J. Heliskoski, acting as Agents)

Re:

Failure of a Member State to fulfil its obligations — Infringement of the second paragraph of Article 307 EC — Failure to adopt the measures necessary to eliminate the incompatibilities with the EC Treaty of bilateral agreements concluded with third countries before accession of the Member State to the Communities — Bilateral investment agreements concluded by the Republic of Austria with the Republic of Korea, Cape Verde, China, Malaysia, the Russian Federation and Turkey

Operative part of the judgment

The Court:






1.


Declares that, by not having taken appropriate steps to eliminate incompatibilities concerning the provisions on transfer of capital contained in the investment agreements entered into with the Republic of Korea, the Republic of Cape Verde, the People’s Republic of China, Malaysia, the Russian Federation and the Republic of Turkey, the Republic of Austria has failed to fulfil its obligations under the second paragraph of Article 307 EC;










2.


Orders the Republic of Austria to pay the costs;










3.


Orders the Federal Republic of Germany, the Republic of Lithuania, the Republic of Hungary and the Republic of Finland to bear their own respective costs.






(1)  OJ C 165, 15.7.2006.