BRUSSELS - The row centres on the management of securities and stock exchanges, and the European Commission "has decided to refer Belgium to the European Court of Justice for its failure to implement" European Union law on transparency of financial relations covering public undertakings, said a statement.

"It is clearly in the interest of European citizens that the commission is in a position to verify that public money is used to provide public services and not to subsidise commercial activities," added outgoing Competition Commissioner Neelie Kroes.

"Belgium should comply with its financial transparency obligations."

The commission said Belgium had to implement the new law by December 2006, "to ensure that companies, receiving state compensation for the discharge of a public service while exercising commercial activities, keep separate accounts."

The EU's Transparency Directive requires the harmonisation of transparency requirements for information about issuers whose securities are admitted to trading on a regulated market.