Brussels sanctions Spain over Endesa boardroom battle
18 October 2006, BRUSSELS — The European Commission is to take legal action against Spain for imposing 'protectionist' conditions to stop the takeover of utility Endesa.
18 October 2006
BRUSSELS — The European Commission is to take legal action against Spain for imposing 'protectionist' conditions to stop the takeover of utility Endesa.
Madrid imposed conditions on German power company E.ON to try to stop its planned acquisition of Endesa.
The EU competition commissioner Neelie Kroes presented a report on Wednesday recommending sanctions against Spain for failing to remove conditions on the acquisition in compliance with an EU ruling.
Spanish energy sector regulator CNE ratified all 19 conditions it imposed on the planned takeover, ignoring the EC ruling that 18 of them are illegal
If Spain fails to act, Madrid will be brought before the European Court of Justice.
The socialist government had favoured a bid by the Spanish company Gas Natural.
Madrid urged the country's energy sector watchdog to bring in the conditions in February.
[Copyright EFE with Expatica]
Subject: Spanish news