Press Release: Commission confirms need to tackle cross-border investment restrictions and energy market distortions

At a meeting on 20 June 2001 the European Commission confirmed the need to ensure that measures taken by public authorities in the Member States do not restrict, directly or indirectly, investment between Member States in violation of EC Treaty rules on the free movement of capital and the right of establishment, as outlined in its 1997 Communication. The Commission also reiterated the need for rapid adoption by the EU's Council of Ministers and the European Parliament of the March 2001 proposals to liberalise fully EU energy markets. The Commission underlined that it will continue to apply vigorously competition and state aid rules. In the event of delay in the adoption of the energy liberalisation Directives creating distortions of competition, the Commission agreed to consider adopting itself Directives or Decisions, on the basis of Article 86 of the EC Treaty, notably its third paragraph. Article 86 also guarantees that the application of competition rules does not prevent operators from fulfilling their public service obligations.