Banking and investment services: Infringement proceedings against France and Portugal

United Kingdom

Infringement proceedings against France and Portugal

France is in the dock for its rules prohibiting foreign banks from issuing certain short-term securities or certificates of deposit denominated in French Francs. The Commission believes that this violates Treaty rules on the free movement of capital and services.

The Commission has also referred Portugal to the European Court of Justice for its law which allows the Portuguese government to impose restrictions on shareholdings held by foreigners in privatised companies. A further law requires all investors, Portuguese or foreign, to request authorisation from public authorities if they wish to acquire more than 10% of the capital of a company which is to be privatised. The Commission believes these restrictions are contrary to the EC rules on the free movement of capital.