Press Release: Free movement of capital: Commission closes case against Spain over privatisation law

The European Commission has decided to close infringement procedures against Spain in view of the measures taken to comply with a European Court of Justice ruling of 13 May 2003. The ruling had found that by maintaining in force certain provisions of the privatisation Law 5/1995, as well as Royal Decrees on Repsol SA, Telefónica de España SA, Telefónica Servicios Móviles SA, Argentaria, Tabacalera SA, and Endesa SA, in so far as they implement a system of prior administrative approval, Spain had failed to fulfil its obligations under EC Treaty rules on the free movement of capital (Article 56). This decision follows the notification by Spain of measures taken on 26 May 2006 to comply with the Court ruling.