Case C-249/06: Judgment of the Court (Grand Chamber) of 3 March 2009 — Commission of the European Communities v Kingdom of Sweden (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 Kingdom of Sweden with the Argentine Republic, the Republic of Bolivia, the Republic of Côte d’Ivoire, the Arab Republic of Egypt, Hong Kong, the Republic of Indonesia, the People’s Republic of China, the Republic of Madagascar, Malaysia, the Islamic Republic of Pakistan, the Republic of Peru, the Republic of Senegal, the Democratic Socialist Republic of Sri Lanka, the Republic of Tunisia, the Socialist Republic of Vietnam, the Republic of Yemen and the former Socialist Federal Republic of Yugoslavia)
Date: 2009-03-03
Institutions: Court of Justice
Subjects: European Commission, Sweden, Viet Nam, action for failure to fulfil an obligation, bilateral agreement, investment abroad, investment policy








C_2009102EN.01000202.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 Kingdom of Sweden
(Case C-249/06) (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 Kingdom of Sweden with the Argentine Republic, the Republic of Bolivia, the Republic of Côte d’Ivoire, the Arab Republic of Egypt, Hong Kong, the Republic of Indonesia, the People’s Republic of China, the Republic of Madagascar, Malaysia, the Islamic Republic of Pakistan, the Republic of Peru, the Republic of Senegal, the Democratic Socialist Republic of Sri Lanka, the Republic of Tunisia, the Socialist Republic of Vietnam, the Republic of Yemen and the former Socialist Federal Republic of Yugoslavia)
2009/C 102/03
Language of the case: Swedish

Parties


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

Defendant: Kingdom of Sweden (represented by: A. Falk and K. Wistrand, acting as Agents)

Interveners in support of the defendant: Republic of Lithuania (represented by: D. Kriaučiūnas, acting as Agents), 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 take the steps necessary to eliminate the incompatibilities with the EC Treaty of bilateral agreements entered into with third countries before the accession of the Member State to the European Communities — Bilateral investment agreements concluded by the Kingdom of Sweden with the Socialist Republic of Vietnam and sixteen other countries

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 concluded with the Argentine Republic, the Republic of Bolivia, the Republic of Côte d’Ivoire, the Arab Republic of Egypt, Hong Kong, the Republic of Indonesia, the People’s Republic of China, the Republic of Madagascar, Malaysia, the Islamic Republic of Pakistan, the Republic of Peru, the Republic of Senegal, the Democratic Socialist Republic of Sri Lanka, the Republic of Tunisia, the Socialist Republic of Vietnam, the Republic of Yemen and the former Socialist Federal Republic of Yugoslavia, the Kingdom of Sweden has failed to fulfil its obligations under the second paragraph of Article 307 EC;










2.


Orders the Kingdom of Sweden to pay the costs.










3.


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






(1)  OJ C 178, 29.7.2006.